IMF proposes financial-activity tax and resolution mechanism

04/6/2011 | Wall Street Journal, The · Bloomberg

Dominique Strauss-Kahn, managing director of the International Monetary Fund, scrutinized banking rules agreed upon at a global level, saying they won't prevent another major financial crisis. The IMF proposed tools to assess the systemic risk of a financial institution and proportional fees to safeguard the system. "We need a tax on financial activities to force this sector to bear some of the social costs of its risk-taking behavior," Strauss-Kahn said. "We need better resolution mechanisms to end the scourge of too big or too important to fail [firms], including along the critical cross-border dimension."

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Wall Street Journal, The · Bloomberg

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