Markets to report on the causes of the financial crisis

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The Independent Online

A groundbreaking report that examines the causes of the financial crisis, as well as showing what needs to be done to reduce risks in future, will be published next Wednesday.

The report, by the Association for Financial Markets in Europe, will examine where regulation has succeeded and where it has failed in its objectives. The report by the association's policy specialists has involved more than 250 experts, including senior figures from international banks and law firms, as well as industry experts and regulators.

Sources close to the association say the report will suggest that the debate about banks being "too big to fail" is counterproductive in that it does little to reduce excessive risk taking. The association will provide a robust case against the idea of breaking up the retail and investment sectors within the banks, said the source.

Mark Austen, the association's acting chief executive, and other policy specialists will present the findingsand discuss decisions they say must be made to reduce any further risks to the economy.

Simon Lewis, Gordon Brown's former spokesman, takes over as chief executive on 1 October. Mr Austen has been named chief operating officer.