U.K.’s Darling Urges Bigger IMF Role in Surveillance of Markets

The Chancellor of the Exchequer is calling for the International Monetary Fund, to take a greater role in the management of the worlds financial market having stated last year that the effects of the subprime mortgage crisis would not cause widespread damage.

A change of governance would mean the end of the International Monetary and Financial Committee for each country, to be replaced by a ministerial council that will be accountable.

In a speech to be given today he will call for the IMF to make away from their primary role of surveillance of the role of individual countries and widen their approach to encompass the managing and monitoring of risk in the global financial systems.

If the IMF were to work alongside banking regulators to ensure an early warning system is introduced than financial crises could be averted.

A year ago the IMF had failed to predict the collapse of the US mortgage market and fundamentally miscalculated the effect of the losses.

Darling is calling for the IMF’s cross-national surveillance powers to become is primary role to analyze risk and to produce specific policy responses.

During the week, the IMF have reconsidered their estimate and announced the crisis likely to record $945 billion in losses, having said that there was little risk of serious threat a year ago.

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