Wednesday, August 29, 2007
The call for international regulation of complex financial products and hedge funds is another consequence of the subprime crisis. Both regulators and politicians abroad argue that the US's export of financial products that cause losses in foreign countries shows the need for additional monitoring. While the US has not been receptive to previous efforts, the increasing need for foreign money gives them greater leverage. In particular, the failure of the ratings agencies to downgrade debt has created concern that US regulation is lax. NYTimes, Calls Grow for Foreigners to Have a Say on U.S. Market Rules.