by Beth Connolly on June 22, 2012
London regulators and European policymakers, analysts, and industry officials are enraged at the negativity and criticism pointed their way by American lawmakers at the J.P. Morgan hearing in Congress June 19.
American politicians and regulators tried to absolve themselves of the blame of the J.P. Morgan disaster by viciously pointing the finger across the pond.
Democratic Rep Carolyn Maloney alleged that trading disasters seem to always happen in London, while CFTC head honcho Gary Gensler suggested that J.P. Morgan chose the London location because it knew its riskier operations would be free from overt regulatory scrutiny.
Gensler somehow managed to forget that American regulators, including himself, were actually responsible for overseeing the bank. Some 50 of them were stationed in London to keep tabs on J.P. Morgan’s trading activities.
Gensler actually even compared London to offshore tax havens like the Cayman Islands.
Of course, the Brits were quick to point the finger right back at the Yankees, saying that 2008′s financial crisis was a direct result of the U.S.’s inadequate regulatory regime.
“You would hope that regulators would be working in a more cooperative spirit and that is difficult where there is any lack of trust,” said Richard Reid, director of research at the International Centre for Financial Regulation, in Reuters.
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