IIF Highlights Flaws, Suggests Self-Regulation of Financial Industry

Washington, D.C.–As the world’s biggest banks took responsibility for the credit crisis on Wednesday, the Institute of International Finance recognized “major points of weaknesses in business practices,” such bankers’ pay and risk management, the Financial Times reports.However, the Washington, D.C.-based Institute–which represents more than 375 of the globe’s largest financial companies–said it would be “completely wrong” for to increase industry regulation and instead suggested stronger self-regulation.”We think it would be completely wrong to jump to some premature regulatory measures,” said Josef Ackermann, chief executive of Deutsche Bank and chairman of the IIF board. “We want to demonstrate we can do a better job within the industry.”The IIF’s report mentioned several bank slip-ups: handling risks; conflicts of interest involving bankers’ compensation; an over-emphasis on models and poor protection against liquidity shortages.