The New York Times has reported on regulation of financial markets in the light of the sub-prime crisis. It has noted that:

As geographical boundaries are broken down, "a problem in one location is a problem everywhere," said Dick Bryan, a professor of economics at the University of Sydney .

"There is the need to challenge the sovereignty of national regulators," he said. "Why should the rules of lending in the U.S. be left to U.S. regulators when the consequences go everywhere?"

Of course one solution would be to know where the assets and liabilities of a company are located. This would help indicate who is regulating them, where the risk is and what the rating should be as a result.

Another reason for country-by-country reporting.