Thursday, January 15, 2009

David Rubenstein Helps Design Future Global Financial System

The World Economic Forum released today "The Future of the Global Financial System; A Near-Term Outlook and Long-Term Scenarios." Carlyle Group co-founder David Rubenstein co-chaired the study alongside John Thain of Bank of America/Merrill Lynch. WEC's press release stated:

The report explores a near-term industry outlook characterized by an expanded scope for regulatory oversight, back to basics in the banking sector, some restructuring by alternative investment firms and the emergence of a new set of winners and losers.

“The World Economic Forum’s upcoming Annual Meeting 2009 will provide leaders from industry, government and civil society with a unique and timely opportunity to actively shape the post-crisis world. This report serves as a critical input into these multi-stakeholder discussions to stimulate the development of practical and responsible recommendations for promoting long-term financial stability,” said Professor Klaus Schwab, Founder and Executive Chairman of the World Economic Forum.

Heads of state, finance ministers and central bankers from over 60 countries, as well as chairmen and CEOs from over 200 of the world’s leading financial institutions will be in Davos-Klosters, Switzerland to engage in these discussions.

Actively shape the post crisis world? That's a pretty sweet spot for Mr. Rubensteins and Thain. How will secretive private equity fare in the reorganization? A Carlyle Group captain stands at the helm of this reorganization. They symbolize the greed and leverage that imploded Wall Street. It makes me feel all warm and fuzzy, or is it hot and bothered? (Paul Volker and his Group of Thirty submitted their position paper on the same topic. What timing!)