Containing Systemic Risk: The Road to Reform

On April 8, 2008 E. Gerald Corrigan, Managing Director, Goldman Sachs, and Douglas Flint, Group Finance Director, HSBC Holdings Plc, announced the formation of the Counterparty Risk Management Policy Group III (CRMPG III or the Policy Group). This initiative, triggered in part by the guidance of the President’s Working Group on Financial Markets, was undertaken in order to provide a private sector response to the credit market crisis of 2007 and 2008 in a manner that complements the published work of a number of official bodies, including the President’s Working Group on Financial Markets, the Senior Supervisors Group and the Financial Stability Forum, as well as the efforts of the private-sector based Institute for International Finance.