What’s more: Paulson Committee Report

With thanks to Adam Savett for allowing me to guest post at Lies, Damn Lies, & Forward Looking Statements on the Committee on Capital Markets Regulation’s Interim Report, I would like to add a few updates and comments to that post.

One of the two Bills discussed, the Investment Exchanges and Clearing Houses Bill, as it then was, has since received Royal Assent. The Act “confer[s] power on the Financial Services Authority to disallow excessive regulatory provision by recognised investment exchanges and clearing houses”.

Now we’ll have to see if the FSA will put the Act to use of course. As has been argued elsewhere (no link), Parliament didn’t intervene to prevent Ford Motor Company from manufacturing left-hand drive Jaguars for local sale when it bought the UK brand. (And here not a word on how that acquisition subsequently fared.) That, granted, is of course a no-brainer and the comparison may well stand in the context of ‘regulatory creep’ and capital markets.

Practically though, before the FSA may come into play, the combination of NASDAQ and London Stock Exchange hasn’t actually happened yet and the jury is still out if it will. (Today’s news on the tussle: Financial Times (Companies & Markets and Lombard, free content) and Wall Street Journal, subscription required.) The Fraud (Trials without a Jury) Bill is still in the House of Commons.

At the end of the post I refer to the ‘Ask the expert’ session with Glenn Hubbard, Co-Chair of the Committee, hosted by the Financial Times. The FT has published a selection of questions readers submitted with Hubbard’s answers.

Comments on the Bloomberg/Schumer Report will follow shortly.

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