Dominique Strauss-Kahn has resigned as the head of the International Monetary Fund as he faces sexual assault charges. Boston University School of Law professor Cornelius Hurley is the director of BU’s Center for Finance, Law & Policy (formerly the Morin Center for Banking and Financial Law) and former counsel to the Fed Board of Governors. He offers the following comment on the impending IMF succession fight:
“As global efforts to harmonize financial regulation founder, the new IMF chief will be in a unique position to redirect the discussion. France’s Christine Lagarde has the skills and credibility to play a leadership role among the competing actors on the regulatory stage: G-20, ECB, Federal Reserve, Basel, and others.
“Implementation of national reforms, such as the Dodd-Frank Act in the U.S., is stymied by the ever-present threat of laxer reforms in foreign jurisdictions. The global stage lacks an eloquent spokesperson who can articulate a coordinated approach to financial regulations. Ms. Lagarde could fill that void.”