New fault lines in financial regulation

Jacques de Larosière

Since the outbreak of the financial crisis, governments and regulators have made a major effort to strengthen the system to reduce the chances of a recurrence. Much of what has been decided seems to go in the right direction and, as such, should be welcomed. But some aspects of the present reforms could have unintended negative consequences. In some cases, it is not so much the quantum of reforms that raises questions, but the thrust of the strategic choices that have been decided.
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