Ummid Assistant

Jamia Millia launches courses on China, Afghanistan

IGNOU launches value education programme for teachers

Welcome Guest! You are here: Home Business & Economy

Financial world needs more transparency: Citigroup Chief

Tuesday November 08, 2011 11:26:31 AM, Arun Kumar, IANS

Washington: Citigroup's Indian American Chief Executive Vikram Pandit says last week's collapse of MF Global Holdings Inc. proves that the financial world needs ever more transparency on disclosure and derivatives as well as a better way to regulate non-banks.

Advocating putting derivatives on clearinghouses and exchanges, Pandit Monday pointed to MF Global's European exposures, which ultimately sank the firm, as an example of what can be improved by greater clarity.

Speaking at a conference hosted by the Securities Industry and Financial Markets Association (SIFMA) in New York, Pandit also argued that financial players such as MF Global that are not being regulated like banks, but which engage in banking activities, need to be regulated the same way.

"Shadow banking is really important and prudential regulation can't stop only at a few firms," Pandit said. "It does need capital and other oversight. If you want to be in the business that's the price you have to pay."

Shadow banks are financial firms that aren't subject to rules applied to traditional banks.

MF Global, the holding company for the broker-dealer run by former Goldman Sachs Group Inc co-Chief Executive Officer Jon Corzine, filed for bankruptcy protection Oct 31 after making a $6.3 billion bet with the firm's money on European sovereign debt.

Pandit said the current economic environment is still feeling the effects of the last crisis in 2008, as the world continues to work through the leverage that built up and caused the financial crash.

"We learned yet again what happened to the world when leverage rises to levels that are unsustainable," he said. "We are still living through that."

(Arun Kumar can be contacted at






Bookmark and Share

Home | Top of the Page



Note: By posting your comments here you agree to the terms and conditions of

Comments powered by DISQUS




Top Stories

Prayers mark Eid in India, but clashes in Kashmir

Thronging mosques, sacrificing goats, greeting friends and rustling up delicacies, millions of Indian Muslims celebrated Eid-ul-Zuha Monday. The day passed off peacefully 

Eid-ul-Zuha is about the spirit of sacrifice

Sacrifice and its impact on economy

Muslims around the world celebrate Eid-ul-Adha


  Most Read

Don't seek help from enemies: Grand Mufti says in Haj sermon

More than 2.5 million pilgrims from around the globe prayed for peace and security on the sprawling plains of Arafat on Saturday amid a forceful condemnation by Saudi Arabia's Grand Mufti 

Malegaon rejoice as 'innocents' granted bail ahead of Eid

Even though the Muslims accused of conspiring the 2006 Malegaon blast would not be able to celebrate Eid in the town as their bail papers  


  News Pick

Kalam visits Kudankulam plant, says its safe

Former president A.P.J. Abdul Kalam Sunday visited the Kudankulam Nuclear Power Project (KNPP) in Tirunelveli district of Tamil Nadu and said the plant was 

'Media should hold a mirror to itself'

Following strong reactions from journalist associations to Press Council of India chairman Justice Markandey Katju's outspoken views on the role and calibre of journalists, voices suggesting "media should hold a mirror to itself" have begun to gain ground. There is a lot of online support for Justice Katju with comments 

Mobiles, despite hype, failing world of education?

Is mobile the god that failed educationists? Only years after seeing a lot of potential in using the tiny hand-held devices to promote learning, specialists are having second thoughts about their efficacy in teaching 


Picture of the Day

More than 2.5mn people from all across the world have gathered in Makkah for Haj which starts November 05, 2011 this year. Haj, the fifth pillar of Islam is a religious journey to the House of Allah in Makkah. This is in response to the call of Prophet Abraham when Allah commanded him to call mankind to perform Haj. Haj is the largest gathering of Muslims as about three million Muslims from all over the world meet to worship their Lord. All barriers including language, color, class and race are broken.

(Photo: Arab News/Ahmad Hashad)



RSS  |  Contact us


| Quick links



Subscribe to

Ummid Assistant






About us




Government Schemes










Contact us





    Disclaimer | Terms of Use | Advertise with us | Link Exchange is part of the Awaz Multimedia & Publications providing World News, News Analysis and Feature Articles on Education, Health. Politics, Technology, Sports, Entertainment, Industry etc. The articles or the views displayed on this website are for public information and in no way describe the editorial views. The users are entitled to use this site subject to the terms and conditions mentioned.

2010 Awaz Multimedia & Publications. All rights reserved.