Besides the looming US fiscal cliff, the Japanese general election will be an important event to watch. Other events to watch include the US Q3 GDP, the Bank of Japan interest rates decision and the euro-zone December consumer confidence number.
This article says the core of the crisis lies in the legal provisions of limited liability. Europe and the world need stricter rules for financial traffic which are vital for the functioning of the financial capital markets.
When the storm passes, bank regulation will top the global policy agenda. This column presents new evidence that a bank's private governance structure influences its reaction to bank regulation. Since governance structures differ systematically across countries, one-size-fits-all regulation may be ineffective. Bank regulations must be custom-designed and adapted as financial governance systems evolve.