OECD warns that subprime crisis is not over: report

0 Comments | AFP, April, 2008

PARIS (AFP) — The subprime crisis is not over, the head of the OECD Angel Gurria said on Wednesday, describing it as a "collective bankruptcy" and damning failures throughout the chain of financial risk and regulation.

Gurria was particularly critical of supervision of the financial sector, telling the French newspaper Liberation that the rules "were not sufficiently respected or were not strict enough."

He said: "The entire institutional chain, well oiled, all this sophistication, yesterday the pride of the authorities, has been put into question by this collective bankruptcy."

In this respect, he pointed his finger at "the banks, the investment funds, intermediaries, the credit rating agencies, the insurers."

The Organisation for Economic...