Global framework for financial services finally looks set

Finally, it appears that all the combined tactics of the contra lobby has resulted in no paralysis of the move towards new global regulation of the financial services industry: http://online.wsj.com/article/SB10001424052970204058404577106643689193010.html?mod=dist_smartbrief

Of course, much remains to be done in strengthening this global framework. For example, America's Dodd-Frank legislation created an Office of Financial Research, which was given the responsibility of gathering information that financial institutions have till now withheld from regulators, for the purpose of identifying systemic risks to the financial system; this kind of responsibility needs to be extended, one way or another, to the global level.

Overall, however, the acceptance by the USA of Basel III, as the new rules are called, is to be welcomed and should help stabilise the global financial system.

Naturally, we will need to see the final form of Basel III before detailed comments can be made or its overall effectiveness assessed. Sphere: Related Content