Officials of the US Treasury advocate the importantce of full adoption of the LEI identifier system, and how their pervasive LEI use could have helped avoid the US financial crisis.
According to the director of the Treasury Department’s Office of Financial Research, the financial crisis exposed critical gaps in the data, analysis and policy tools required to ensure financial stability. Berner...highlighted one initiative “critical” to enhancing financial stability: the global adoption of legal entity identifiers. “The global LEI is the cornerstone for financial data standards,” Berner said. “Had the LEI system been in place in 2008, the industry, regulators, and policymakers would have been better able to trace Lehman’s exposures and connections across the financial system.” But getting firms around the world to embrace LEIs is going to take some work. According to research released late last year by Tabb Group and Alacra, 17% of global banks have LEIs. In addition, 15% of entities with a credit rating and 14.5% of entities that are listed on global exchanges have LEIs.