Prof. Bill Black on the ‘competition’ in regulatory laxity between London and New York
Countries are engaged in a race to the bottom on financial regulation, in the name of a ‘competitive’ financial sector. One country deregulates, financial players flock there, and others follow suit, to stay in the race.
So, for example, the City of London is said to be ‘competing’ with New York on financial regulation: each centre is using the other as the bogey man to threaten regulators with dire consequences if they don’t ‘compete’ in this ‘global race.
The end result has been, among other things, the Great Depression of the 1930s, and the Global Financial Crisis that erupted in 2007/8, whose repercussions are still being felt.
See more on this subject, here.
We will be producing more materials on this regulatory race, in due course.
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