Americas: Keeping up with the Joneses

Author: | Published: 31 Oct 2014

Since the onset of the financial crisis, the tightening of regulation to strengthen and protect the global banking system has been a constant source of debate. The critical question posed by politicians, regulators and the general public is where to strike the balance between security and flexibility.

In the aftermath of bank collapses and recession, the most common reaction was to clamp down on those that caused the problems. Objections on the grounds this would reduce liquidity or place a drag on lending were muffled by shouts to prevent the same loose practices that led to the problems in the first place.