Financial race to the bottom is on

[eridani]

http://readersupportednews.org/opinion2/279-82/3519-wall-streets-global-race-to-the-bottom

Two weeks ago, after the Basel Committee on Banking Supervision (a global financial regulatory oversight body) came up with a new set of rules to toughen bank capital and liquidity requirements, European officials threatened to get even tougher. They approved a new system of European regulatory bodies with added powers to ban certain financial products or activities in times of market stress.

This prompted Lloyd Blankfein, CEO of Goldman Sachs, to issue - in the words of the Financial Times - "a clear warning that the bank could shift its operations around the world if the regulatory crackdown becomes too tough."

Blankfein told a European financial conference that while Europe remains of vital importance to Goldman (with less than half of the bank's business now generated in the U.S.), the introduction of "mismatched regulation" across different regions would tempt banks to search out the cheapest and least intrusive jurisdiction in which to operate.

"Operations can be moved globally and capital can be accessed globally," he said.

So the race to the bottom is now official. Wall Street will set up its casino wherever financial gambling is least regulated.

[RandomThoughts]

1. Then why are they needed at all?

[JDPriestly]

2. Very strange. No one wants socialism, but if the capitalists refuse

to invest in traditionally capitalist countries, what happens? This is just bizarre.

Only a tiny minority wants communism, but then if capitalists refuse to invest in our western countries, what alternatives are there?

Blankfein is talking nonsense. That's my serious opinion. Americans are already cutting back on borrowing to an incredible extent. We can tighten our belts yet further -- and then Blankfein can try selling the products of the companies he invests in to the people who produce them -- in China and El Salvador. Let's see how much money he makes on that.

[bemildred]

3. Yeah, sounds like nonsense to me.

He either believes his own bullshit or he is bluffing.

[northernlights]

4. is that a threat or a promise?

and sincere apologies to the unregulated 3rd world countries that inherit that slimy "business."

[blue97keet]

5. If the high rollers wanna move offshore good riddens,

then somebody else can clean up the mess and bail 'em out.

[barb162]

6. The race to the bottom has been going on for a few decades now

The Wall Streeters have enough money to have homes in Switzerland and anywhere else they want. They'll go on to some place else as they have wrung this country dry. They'll move on to greener pastures.