We are still in the midst of the most severe downturn since the Great Depression. But one day we will come out of these dire straits. Are we any better prepared today to avoid a repetition of such a disaster? Have the supervisory agencies in the main financial centres learnt their lesson and adjusted their policies accordingly?

Consider the insights gained during this crisis. First, supervision has to focus on containing systemic risk rather than on avoiding individual bank defaults. Second, early warning signals need to be backed up by reliable information on all financial markets, including derivatives. Both aspects have been neglected in the past and continue to be neglected today.