The biggest predictions are always the hardest to make. This is epitomised by lawyers’ reaction to wide scale financial regulations in the US this year. The final details are anyone’s guess, but the implications will be far reaching.
“Until regulation settles, the situation is not conducive to a lot of activity,” says an M&A lawyer. “Clarity is the most important thing – there can be no ambiguities. Companies and banks need to know what they have to live with.”
Last month, the House of Representatives passed the Wall Street Reform and Consumer Protection Act of 2009. This is the strongest indication of how financial regulation will look. But the narrowness of the vote (223 – 202) suggests that the Senate bill will be surrounded by lobbying, amendments and delays even before both sides of Congress have to agree on the final enrolled...