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Wednesday, October 22, 2008

Such Urgency to Tackle Financial Crisis

The Americans come up with a new proposal almost every two days or so to thaw the frozen credit market. The Europeans come with a new proposal may be once a week. Everyone in west from U.S. Fed chairman Ben Bernanke to French finance minister Christine Lagarde is working day and night to tackle the credit market, the libor, corporate capitalization and everything in between. Ajay Shah has crisis watch on his blog everyday watching the crisis unfold and writing about the implications of the crisis on Indian financial markets and corporations. Sri Arun Shourie talks about what needs to be done urgently to undo the damage done to Bharatiya economy because of current financial crisis.

And now the establishment jumps in to tackle the situation with urgency!

New Delhi, October 21 : Stepping up crisis-management measures to cushion the anticipated economic downturn precipitated by the global financial turmoil, the Government has ordered the High-Level Coordination Committee on Financial Markets to meet at least once a month as an emergency measure to take stock of the situation and identify timely responses.

The committee, headed by RBI governor Duvvuri Subbarao, is essentially a panel of regulators comprising heads of IRDA, PFRDA and SEBI besides top Finance Ministry officials.

The committee convened an emergency meeting in the first week of October to assess preparedness of regulators to tackle the impact of the financial crisis.

The decision comes after repeated suggestions to evolve a mechanism that can provide timely and coordinated response to a situation that is unpredictable, requiring effective regulation.
Meet at least once a month! What would the country do without such urgency, by the people in charge, to tackle the financial crisis.