Capital charges: international arbitrage is just “shopping”

Author: Danielle Myles | Published: 20 Jul 2011

Drop the international arbitrage mantra. That was the message from a panel discussing systemic risk and capital requirements at Sifma’s Dodd-Frank Impact Analysis summit on July 13.The real risk, according to panelists, is the domestic movement of capital from regulated sectors to the shadow banking system.When asked whether there is likely to be regulatory arbitrage between capital requirements for US financial institutions and those based overseas, panelist Steven...