New Financial Regulation Could Vary Greatly By Jurisdiction

By Evan Abrams

In the wake of the Global Financial Crisis regulators set out to enhance safeguards to prevent another economic meltdown. However, as Reuters reports, banks are being told not to expect seamless rules across jurisdictions and are being advised the rules may soon change again. The rules are principally aimed at requiring banks to hold additional capital and placing restrictions on the trade of derivatives. Yet, banks are warning that divergent rules could segment capital markets and slow economic growth.