Financial regulation in the wake of subrpime mess

the city claims that

“Proposed changes could greatly increase the cost of capital across Europe with detrimental effects far beyond the financial services industry,” said Stuart Fraser, chairman of policy and resources at the City of London, which will on Friday publish its gloomy forecasts.

EU commission replies with the statement


“When the financial sector is in such a state that losses risk being socialised while profits from risk-taking are privatised, nobody should be surprised if, in the absence of meaningful and comprehensive industry response, there is a regulatory response to address the misaligned incentives that are at the heart of the problems that have arisen.”