The European Union is taking the lead in reforming the world’s financial system. The EU is the first power bloc to respond to calls for more regulation and is passing laws that will affect businesses around the world.
The Washington Post reported Saturday:
The Europeans are now out front, for instance, in setting strict new standards for rating agencies and risk management at firms selling mortgage-backed securities. Europe has also seized the initiative in developing new rules to monitor hedge funds while forging ahead this week with plans to create two new powerful regulatory agencies in Europe, according to analysts and regulators. …
The campaign across the Atlantic has global implications, in large part because even firms based in the United States may be compelled to follow Europe’s tougher rules. For instance, under a draft proposal issued by the European Commission, the ruling body of the 27-member European Union, U.S. hedge funds may have to subject themselves to tight European oversight or be barred from doing business with European clients.
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