Global: Lessons from the Crisis

Western pillars of financial regulation have been demolished: the auditors, credit rating agencies and the regulators..but what next? However, it seems Asia learned lessons from the Currency crisis of 1997 which are helping during this crisis.

The following article in the Financial Times is worth reading: Why Asia stays calm in the storm

In the past, Asian governments expected western counterparts to be role models of good governance. One story illustrates how times have changed. This year, a European banker consulted the Reserve Bank of India to learn how to get a banking licence in India. He was briefed on the conditions and told that the Indian authorities would also assess his regulator. The European banker smiled and said: “No problem. We have excellent regulation.” The Indian officer replied: “After subprime, we are not sure of US regulation; after Northern Rock, British regulation; after Société Générale, French regulation and after UBS, Swiss regulation.

This time around, how will Eastern Europe fare...are they the over-extended Asian countries of 1997?