Sir,
I was correctly quoted in your articles "Can the IMF play supercop?" and "Throwing good money after bad" (IMF/World Bank issue), that the IMF plays a critical role as international lender of last resort. But the caption to my picture is 180 degrees off! I have never said that the IMF should be a banking super-regulator. Indeed, I have said just the opposite, that the IMF cannot be a supranational supervisor. Successful regulatory oversight requires a consistent and ongoing presence and the power to close institutions. The IMF only has power in crisis times, and its ability to close individual institutions comes, if at all, too late in the game.
Sincerely,
Dr Catherine L Mann
Senior fellow, Institute for International Economics
11 Dupont Circle
Washington, DC 20036