Since Lehman Brothers collapsed last year it has become painfully obvious that regulators are ill equipped to view institutional loan portfolios in a way that will help them adequately monitor the global financial system. Because of Lehman's relationship with numerous financial firms around the world, its failure immediately caused global credit markets to grind to a halt. This could have been prevented if regulators had the tools in place to effectively view complex debt instruments and the links between the financial institutions that securitize, hold, and insure them.

Currently available data provide regulators with only a snapshot of the loans held by a single institution — not a complete picture of the entire portfolio, let alone an understanding of the risk faced by financial institutions that hold securities based on these loans.

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