The global financial crisis and the Financial Stability Forum:

Main Story:

Grey Matters

Enrique R. Carrasco, The global financial crisis and the Financial Stability Forum: The awakening and transformation of an international body, Transnational Law & Contemporary Problems (forthcoming 2010).  Available at

This article chronicles the awakening of the Financial Stability Forum (FSF) and its transformation into the Financial Stability Board (FSB). It describes the origins of the FSF and its relatively obscure work prior to the current crisis. It then chronicles the FSF’s significant rise in visibility throughout the crisis via its reports analysing the crisis and setting forth recommendations relating to reforms of law and regulation of the financial markets. The FSF’s transformation into the FSB has given the FSF a more robust institutional grounding capable of coordinating its work with the IMF. The article concludes that while the global financial crisis brought the FSF out of obscurity and resulted in its transformation into the FSB, it is still too early to tell whether the FSB will have a significant impact on global governance of international finance, especially with respect to the needs and interests of emerging economies.

CFR comment
University of Iowa law professor Enrique Carrasco provides a thorough account of the evolution of the FSF into the FSB. Although the evolution of international regulatory institutions is not likely to ever be the subject of a major motion picture, for a geek like your commentator this is almost as good. Rich detail, thoughtful commentary and just 19 pages! Carrasco makes it as lively as he can and anyone trying to think through the future course of FSB activity would do well to start with this account.