Counterparty Risk Management Policy Group Releases Report
July 27, 2005 11:00am ET
NEW YORK, July 27, 2005 - The Counterparty Risk Management Policy Group today released its report entitled: "Toward Greater Financial Stability: A Private Sector Perspective."
The Report, prepared by a group of senior officials from a number of financial institutions, is a forward-looking, integrated framework of initiatives that aim to reduce the risks of systemic financial shocks and limit the damage of such shocks when they occur. The Report focuses particular attention on risk management, risk monitoring and enhanced transparency in the context of today's highly complex and tightly interconnected global financial system.
The Policy Group believes that substantial progress has been made in recent years by market participants in many of the areas discussed by the Report. Nonetheless, the Group views its recommendations and guiding principles as further elevating the standards of practice that financial institutions should follow.
Commenting on the Report, E. Gerald Corrigan, Managing Director, Goldman Sachs & Co., and Chairman of the Counterparty Risk Management Policy Group said: "The scope and reach of the Report is a great tribute to the members of the Policy Group. Their efforts have been truly extraordinary not only in terms of the rigor and quality of their work but, more importantly, in the statesmanship they displayed in their willingness to put aside narrow interests and produce a Report that unquestionably serves the public interest."
Mr. Corrigan called upon senior management of individual financial institutions to review the recommendations contained in the Report and, where appropriate, take steps to bring their business practices in line with these standards.
In the course of its deliberations, the Policy Group met twice with representatives of supervisory and regulatory bodies from various parts of the world. The purpose of those informal meetings was to keep the official sector informed of the progress of the Policy Group's work and to share with them the broad thrust of the recommendations and guiding principles under consideration. The individuals in attendance were not representing nor speaking on behalf of their employers, and neither those individuals nor their employing agencies were asked to endorse the Report or any of its component parts.
The report may be viewed in its entirety at http://www.crmpolicygroup.org.
Press Contacts: Michael DuVally or Peter Rose, +1-212-902-5400
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