Cross-border contagion exacerbated the financial crisis, Donald Kohn, vice-chairman of the Federal Reserve Board, told a conference in the US. Although there were examples of international cooperation, such as in the coordinated effort to address problems in dollar markets, Kohn emphasised that further advancements were required on that front.

He outlined four steps that must be taken to improve international cooperation. First, he said, cross-border exposures would have to be identified, with