Thirdly, full transparency of financial statements is a must. His fourth suggestion is full disclosure of all financial instruments to the regulator. Fifth, the regulator should have oversight over all financial institutions that participate in the markets.
Sixth, mark-to-market accounting needs to be abolished for hard-to-value assets. Lastly, a principles-based regulatory system shall be implemented instead of a rules-based regulatory system.
Schwarzman also states that in order to implement this new system of global financial regulation and monitoring, it is imperative that a new global organization of regulators, one that will enable world markets to communicate and share information effectively and efficiently with one another, be formed.
Let’s hope that we learn from this crisis and don’t repeat the same errors in the future.