The Group of Thirty based out of Washington, DC, has become particularly concerned with the risks derivatives pose. Since 1995, it has issued several publications to address these problems. The first of these was published in August 1996, and is titled “International Insolvencies in the Financial Sector, Discussion Draft.” This document advances fourteen ideas to reduce the risk in the financial sector particularly with regard to derivatives(see Exhibit 2 for the complete list). The second publication printed in April of 1997 is titled “International Insolvencies in the Financial Sector, Summary of Comments from Respondent Countries on Discussion Draft.”
This publication gives the responses and opinions of those member countries to the proposed reforms. The support for these reforms was generally very strong among all the countries that responded. Germany and other countries did mention several drawbacks to some of the reforms, but they, too, were generally supportive. Ironically, Singapore expressed reservations or outright opposition to five of the reforms (#1, 2, 4, 6 and 9).1