With global banking either you have international standards or a race to the bottom.

Reader comment on: Global Governance

Submitted by Lyle (United States), May 26, 2010 16:42

Recall all the concerns that if the US were to impose a stricter capital requirement on its banks the european banks would eat the US banks lunch, and vice versa. Once you go global with banking you can either have international standards or a race to the bottom, where the bankers say if you don't let us do what we want to screw the public we will lose business to the other countries. Note that the standards will likely apply to banks like citi which are not really US banks except in name with most assets and business outside the us or Goldman with at least a significant business outside the us. One could present banks an option, be a US-only bank and face US regulation or a world-wide bank and face world-wide rules.

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