The financial markets and systems have suffered from too much governmental and regulator intervention, which has in turn caused less transparency and more complexity as market authorities try to stop another financial crisis from happening, says industry expert.
Following John Guberts presentation yesterday, there have been many questions as to whether we are facing another crisis, said Attila Szalay-Berzeviczy, Global Head Securities Services at Unicredit, while speaking at the annual NEMA 2011 conference in Croatia. Are we facing a positive scenario and a great future or are we about to face one big crash, one big crisis and did the collapse of Lehman Brothers illustrate a prelude to the impending big crisis. Usually financial crisis start because politicians and market authorities get it all wrong and this is what happened in the previous crisis.
Szalay-Berzeviczy added that in my view, those people sitting in Brussels or other governmental seats that are being paid by the taxpayer; they have not met expectations. They failed to realise the road towards the crisis and again market authorities think that intervening and fixing financial markets in the life of the banking world will avoid the next crisis. I have news for them; it will not be like this.
In Szalay-Berzeviczys address to the NEMA conference on the second day, he also highlighted how we have not fully realised a recovery and there are many issues that have been created out of market authorities thinking they are helping by heavy-handed intervention.
In the past whenever Brussels has intervened with the idea of a single market, it led us to most the most non-transparent and complex world, said Szalay-Berzeviczy. We have a weakened US and the European Union still cannot find its way out of the crisis and it is still deepening, while China is slowing down. If the perfect was to arise tomorrow, who is in the position to save the world?
Please click here for all coverage of the NEMA 2011 conference in Dubrovnik, Croatia, this week with Global Custodian.
(LB)