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Nick Shaxson ■ Quote of the day: City of London and financial fraud

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Black

Black testifies before U.S. Congress

One of a long line of “quotes of the day: this one from 2013, but still relevant today

The “race to the weakest supervisor” did not occur only within the U.S.  Brooksley Born and a former senior SEC official have confirmed to me that UK regulators directly pitched U.S. financial firms to relocate operations to the City of London in order to obtain weaker supervision.  “Fed lite” supervision was a competitive response to the FSA’s “reg lite” system of deliberately weak supervision.

The City of London became the most criminogenic environment in the world for financial fraud, which is why so many UK banks and units of foreign banks located in the City have caused the major scandals in the UK and globally.

– William K. Black

Read more on this here, or here.

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Comments • 2

  • AvatarMr. Blair M. Phillips
    October 17, 2014 - 11:56 am

    The business of business is business, There are no morals or ethics within Capitalism. Are there alternatives – yes! Read Michael Albert’s 2004 book,” PARECON – Life After Capitalism” and decide for your self.

  • October 21, 2014 - 9:22 am

    Capitalism is an abstract concept, but behind it there are people. Ethics and ethical behaviour is something people have/do. The question should not be whether capitalism has ethics, rather why the people working withing capitalism lose their ethical direction; where and why they go wrong.

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