Business Leaders Welcome more Regulation of the Finance Sector

UK’s best business leaders met over the weekend at Washington to discuss the present financial situation of the world. They laid a lot of importance on greater international control on the financial sector. In a survey by a reputed law firm, most of the 286 UK based members who took part in survey is in favour of rewriting Basel II agreement, which recommended global regulations for banks in 2004. The respondents also favored greater control of rating agencies, openness of financial sector and hedge funds. However, there has been some disagreement over restriction of bonuses banning on short selling. In this survey, though respondents were not critical of regulatory bodies but felt that they should be integrated internationally and resourced better. Though 78% of the respondents welcomed greater control of rating agencies only 69% supported control of hedge funds. It is also interesting to note that British respondents were opposed to caps on bonuses with only 19% supporting the idea. However, both UK and the US did not agree to the idea of a global financial services regulator. Experts feel that most of the world and especially the US oppose the idea of a global regulator. Keeping the present situation in mind, an assimilated world economy and a global financial regulatory board is worth considering.

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