How Wall Street is Trying to Avoid Oversight
Robert B. Reich
While all eyes are on the
Yet the overseas branches of
One advantage of being a huge
"If JPMorgan overseas operates under different rules than our foreign competitors," warned
This is the same
JPMorgan's risky betting in
At the same time, the Street has been warning Europeans that if their financial regulations are too tight, the big banks will move more of their business to the U.S., where regulations will (they hope) be looser.
After the Basel Committee on Banking Supervision (a global financial regulatory oversight body) came up with a new set of rules in 2010 to toughen bank capital and liquidity requirements, European officials threatened to get even tougher. They approved a new system of European regulatory bodies with added powers to ban certain financial products or activities in times of market stress.
Blankfein told a European financial conference that tougher regulations in
"Operations can be moved globally and capital can be accessed globally," he warned.
Someone should remind Dimon and Blankfein that four years ago they and their colleagues on the Street almost eviscerated the American economy, and that of much of the rest of the world. The Street's antics required a giant taxpayer-funded bailout. Most Americans are still living with the results, as are millions of Europeans.
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