The FT has reported that:
President Nicolas Sarkozy and Chancellor Angela Merkel on Thursday warned the US and the banking industry not to thwart European efforts to tighten financial regulations this year.
In a blunt message to Barack Obama, the incoming US president, the French and German leaders made clear that the European Union was determined to set the agenda for the G20 summit in London on April 2.
The summit of leading and emerging economies will discuss ways of strengthening the architecture of global financial regulation.
I am sure they are right to be robust. We can anticipate a strong fight back from the finance industry against any more regulation. Abusers do not like having their access to victims disrupted - especially whent their perception of their well-being depends on it.
These arguments will run for a long time yet.
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Before adding more regulations, may be it is time to ensure that the current regulations are actually being followed in practise.
One thing about Madoffgate is that it appears the SEC only enforce regulation on those not of their own.
What’s the point of having strong regulations if you don’t bother enforcing them?
Agreed Creg
But I say exactly the same of you
And in both cases new directions of regulation are needed
That will include new accounting rules and a commitment that requires everything on public record, independently financed auditors, re-regulation of the accounting, auditing and legal professions which makes it very hard for them to work offshore, and more.
Don’t worry – it will happen. Existing regulation has failed – it does not catch you or stop the rot onshore or offshore. Both will be reformed
Richard