Financial Times FT.com

Credit crunch ‘echoes Latin debt crisis’

By Richard Lapper in Santiago

Published: August 11 2008 23:17 | Last updated: August 11 2008 23:17

US financial regulators are making the same mistakes as their Latin American equivalents in the debt crisis of the early 1980s, according to Andrés Velasco, Chile’s finance minister.

Public guarantees for private financial activities had to be coupled with strong regulation, he said, while regulators and credit ratings agencies should have been more vigilant about the risks associated with new financial instruments.

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