The US is deep into presidential election season and that
means one thing: all politics, all the time. Whether it's a
social issue like race or gender, or healthcare, or the Iraq
war, this time of year everything has a spin. The financial
markets and their potential reform are no exception.
US Treasury Secretary Henry Paulson outlined the results of
a year-long research project at the end of March, which had set
out to offer suggestions on how US regulation could be adjusted
to compete better with other markets. Everyone in the legal,
financial and political communities is keeping a close watch on
the proposal, and offering some suggestions of their own.
As the research started before the credit crisis, JP
Morgan's buyout of Bear Stearns, and the sub-prime mortgage
mess, the timing of this blueprint may be political in itself,
with the government wanting to appear...