Seminar on Current Developments in Monetary and Financial Law

Law and Financial Stability

Washington, D.C., October 23-27, 2006

Last Updated: July 28, 2017

The 2006 Seminar on Current Developments in Monetary and Financial Law was held at IMF headquarters on October 23-27, 2006. The theme of the seminar was Law and Financial Stability. Hon. Randall Kroszner, Governor, U.S. Federal Reserve Board, delivered the keynote address. Mr. Rodrigo de Rato, IMF Managing Director, and Mr. John Lipsky, IMF First Managing Director, also addressed the seminar. The program (see below) includes presentations by regulators, academics, legal practitioners, and staff of international institutions.

The 65 participants consisted mainly of heads of legal departments and senior lawyers of invited central banks, monetary authorities, regional monetary institutions, and international institutions. Attendance by persons other than the participants, speakers, and IMF staff was by invitation only.

The IMF Legal Department and the IMF Institute have held biennial seminars on topical issues relating to monetary and financial law since 1988. The papers presented at the seminars held during 1988-96 have been published by the IMF in Current Legal Issues Affecting Central Banks, Volumes 1-5. The papers presented at the seminars held during 1998-2004 have been published in Current Developments in Monetary and Financial Law, Vol. 1, Vol. 2, Vol. 3 and Vol. 4, respectively.

Queries regarding the 2006 Seminar may be addressed to

The views expressed in these papers are those of the authors only, and the presence of them, or of links to them, on the IMF website does not imply that the IMF, its Executive Board, or its management endorses or shares the views expressed in the papers.


Monday, October 23
A.M. Opening Session
8:30am–9:15am Registration1
9:15am–9:30am Welcoming remarks and introduction of IMF Managing Director
Mr. Sean Hagan
IMF General Counsel and
Director of the Legal Department
9:30am–9:45am Opening address
Mr. Rodrigo de Rato
Managing Director, IMF
A.M. Legal Developments in the IMF
  Moderator: Ms. Rhoda Weeks-Brown
Assistant General Counsel
IMF Legal Department
9:45am–10:30am The IMFs Medium Term Strategy—Legal Aspects
Mr. Sean Hagan
IMF General Counsel and
Director of the Legal Department
10:30am–10:50am Break
10:50am–11:35am IMF Quotas, Voice, and Representation
Mr. Hector Elizalde
Deputy General Counsel
IMF Legal Department
11:35am–12:20pm The IMFs Legal Instruments to Promote Financial Stability
Mr. Ross Leckow
Deputy General Counsel (Acting)
IMF Legal Department
12:30pm–2:00pm Luncheon, IMF Gallery2
hosted by Mr. Leslie Lipschitz, Director, IMF Institute

Speaker: Mr. Jaime Caruana
Counsellor and Director
Monetary and Capital Markets Department, IMF
P.M. Financial Stability: Overview
  Moderator: Mr. Barend Jansen
Assistant General Counsel
IMF Legal Department
2:00pm–3:00pm Understanding Financial Stability: Towards a Practical Framework
Mr. Garry Schinasi
IMF Finance Department
3:00pm–3:20pm Break
3:20pm–4:20pm Institutional Responses to Recent Episodes of Financial Instability
Mr. Charles Enoch
Deputy Director
Monetary and Capital Markets Department, IMF
4:20pm–5:20pm International Economic Law and Financial Stability: The Role of International Institutions

Dr. Kern Alexander
Senior Research Fellow
Centre for Financial Analysis and Policy
Cambridge Endowment for Research in Finance
Tuesday, October 24
A.M. Workshop on Central Bank Law
  Moderator: Mr. Ross Leckow
Deputy General Counsel (Acting)
IMF Legal Department
9:00am–9:10am Administrative announcements
9:10am–12:30pm Workshop on Central Banking Legislation—A Survey of Best Practices3

Mr. François Gianviti
Former IMF General Counsel
  (Break at around 10:10–10:30 am)
12:30pm–12:45pm Group Picture, IMF Gallery
12:45pm–2:15pm Lunch break
P.M. Workshop on Central Bank Law (continued)
2:15pm–5:35pm Discussion of topics listed in the morning session to be continued
  (Break at around 3:15–3:35 pm)
Wednesday, October 25
A.M. Regulation Rationale, Derivatives, and Hedge Funds
  Moderator: Mr. Barend Jansen
Assistant General Counsel
IMF Legal Department
9:00am–9:10am Administrative announcements
9:10am–10:10am Reassessing the Rationale and Practice of Bank Regulation
Mr. James Barth
Professor of Finance, Auburn University
Senior Research Fellow, Milken Institute
10:30am–11:30am Issues in the Regulation of Derivatives

Derivative Law
Mr. Philip McBride Johnson
Of Counsel
Skadden, Arps, Slate, Meagher, and Flom
Former Chairman of Commodity Futures Trading Commission
11:30am–12:30pm Hedge Funds and Securities Regulation
Mr. Troy Paredes
Professor of Law
Washington University School of Law
St. Louis
12:30pm–2:00pm Lunch break
P.M. Financial Disclosure, Liability of Supervisors, Legal Risk in Financial Markets
  Moderator: Ms. Maike Luedersen
Senior Counsel
IMF Legal Department
2:00pm–3:00pm Statutory Protections for Financial Supervisors: How to Promote Financial Stability By Enacting the Right Laws

Mr. Ross Delston
Managing Director, Kalorama Partners, Washington, D.C.
3:00pm–3:20pm Break
3:20pm–4:20pm Achieving Financial Stability Through Disclosures
Ms. Roberta Karmel
Professor of Law, Brooklyn Law School
Former Commissioner, Securities and Exchange Commission
United States
4:20pm–5:40pm Legal Risk in the Financial Markets

Mr. Roger McCormick
Visiting Professor
Law Department, London School of Economics
Thursday, October 26
9:00am–9:15am Administrative announcements
9:15am–9:35am Remarks by Mr. John Lipsky, First Deputy Managing Director, IMF
A.M. Anti-Money Laundering—Terrorist Financing and Financial Stability
9:35am–10:25am Money Laundering, Terrorist Financing, and their Impact on Financial Stability

Moderator: Mr. Jody Myers
Senior Counsel
IMF Legal Department
  Mr. Peter Reuter
Professor, School of Public Affairs and Department of Criminology, and
Director, Program on the Economics of Crime and Justice Policy
University of Maryland
  The broader impact of terrorism on financial stability
Mr. Richard Barrett
Coordinator, Al-Qaida Taliban Monitoring Team
United Nations, New York
10:25am–10:45am Break
10:45am–11:40am Moderator: Mr. Jean-François Thony
Assistant General Counsel
IMF Legal Department
  The Impact of Weak AML/CFT Frameworks on Financial Stability

Mr. Zenon Biagosch
Vice Superintendent of Banks and
Director of the Central Bank Board
Central Bank of Argentina
  Mr. Chip Poncy
Director of Global Affairs
Office of Terrorism and Financial Intelligence
U.S. Department of the Treasury
  Mr. William Langford
Director of Global AML and
Senior Vice President, JP Morgan Chase and Co.
New York
11:40am–12:30pm Moderator: Mr. Nadim Kyriakos-Saad
Senior Counsel
IMF Legal Department
  Elements of an Effective AML/CFT Framework: Legal, Regulatory, and Best Institutional Practices to Prevent Threats to Financial Stability and Integrity

Mr. Ian Carrington, Senior Financial Expert
Financial Integrity Group, IMF Legal Department
  Ms. Heba Shamseldin, Financial Sector Specialist
Financial Market Integrity Group, World Bank
12:30pm–2:00pm Lunch break
P.M. Governance, Deposit Insurance, and Market Discipline
  Moderator: Mr. Barend Jansen
2:00pm–3:00pm The Evolving Profile of Corporate Governance in U.S. Financial Institutions

Mr. John M. Liftin
Vice Chairman, General Counsel and Secretary
Bank of New York
3:00pm–3:20pm Break
3:20pm–4:20pm Legal framework of market discipline

Mr. Charles Elson
Professor of Law
Lerner College of Business & Economics
University of Delaware
4:20pm–5:20pm Deposit Insurance and Moral Hazard: Implications of the 2006 U.S. Federal Deposit Insurance Reform Act

The Moral Hazard Implications of Deposit Insurance: Theory and Evidence
Ms. Patricia McCoy
Professor of Law
University of Connecticut School of Law
Friday, October 27
A.M. Payments, Settlement, and Securities Infrastructure
  Moderator: Mr. Wouter Bossu
IMF Legal Department
9:00am–9:10am Administrative announcements
9:10am–10:10am The Regulation of Payment Systems: The Legal and Policy Aspects of Central Bank Payment Settlement and Finality

Mr. Christian Johnson
Faculty Director, Business Law Center
Loyola University of Chicago School of Law

Mr. Robert S. Steigerwald
Senior Professional
Financial Markets Group
Federal Reserve Bank of Chicago
10:10am–10:30am Break
10:30am–11:30am Legal Protection of Payment and Securities Settlement Systems in European Union Legislation
Mr. Diego Devos
Deputy General Counsel
Bank for International Settlements
11:30am–12:30pm The UNCITRAL Model Law on International Credit Transfers

Mr. Jernej Sekolec
United Nations Commission on International Trade Law (UNCITRAL)
12:30pm–2:15pm Luncheon at IMF Gallery4
hosted by Mr. Sean Hagan, General Counsel

Hon. Randall Kroszner
Federal Reserve Board, United States
P.M. Payments, Settlement, and Securities Infrastructure (continued)
  Moderator: Mr. Thomas Laryea
Assistant General Counsel
IMF Legal Department
2:30-3:30 p.m. The U.S. Commercial Law Response to the Development of Intermediated Securities Holding Systems
Ms. Sandra Rocks
Counsel, Cleary, Gottlieb
New York
3:30pm–3:50pm Break
3:50pm–4:50pm The Relevant Conflict of Laws Analysis for Holding, Transferring and Pledging Securities Today: The Hague Securities Convention

The Hague Convention of 5 July 2006 On the Law Applicable to Certain Rights in Respect of Securities Held with an Intermediary (Hague Securities Convention)
Mr. Christophe Bernasconi
First Secretary, Permanent Bureau
Hague Conference on Private International Law
The Hague
4:50pm–5:50pm Harmonized Substantive Rules Regarding Indirectly Held Securities

The Draft Unidroit Convention on Intermediated Securities: Transactional Certainty and Market Stability
Mr. Herbert Kronke
5:50pm–6:00pm Adjournment
Workshop on Central Bank Law
Tuesday, October 24, 2006
9:00am–9:10am Administrative announcements
9:10am–5:20pm Central Banking Legislation—A Survey of Best Practices5
  Mandate and objectives
Conduct of monetary policy

The Price Stability Mandate of the European System of Central Banks: A Legal Perspective
Niall J. Lenihan
Assistant General Counsel, Legal Services
European Central Bank (ECB)

Contributing participants: Federal Reserve Board, European Central Bank
  Other objectives and functions
- Governance, independence and accountability
Contributing participants: Sweden, Thailand
  Financial stability as a central bank objective
-- Relationship with other objectives
-- Role of the central bank
Central Banks and Financial Stability: A Survey of Financial Stability Reports Contributor: Ms. Andrea Michaela Maechler6
-- Instruments: central bank as supervisor, etc.
Contributing participants: BCEAO, Brazil, Malaysia
Should Central Banks be also Banking Supervisors?
Francisco Josť de Siqueira, Banco Central do Brasil
  -- Coordination with other entities with mandates pertaining to financial stability
Contributor: Dr. Kern Alexander

1Light breakfast served.
2By invitation only.
3Please see Annex for topics to be discussed.
4By invitation only.
5Breaks at around 10:10-10:30 am and around 3:15-3:35 pm.
6Economist, Monetary and Capital Markets Department, on behalf of Martin Cihak