Global regulatory reform not in sight, says Kern Alexander

Regulatory convergence between the EU and US will remain limited and disputes will arise regarding how to supervise too-big-to-fail institutions and over oversight of market infrastructure (clearing OTC derivatives). Also, a policy divide will open up between DCs, EMEs/small economies and developed countries over developed country crisis support measures that shielded troubled banks from market forces. These measures are at odds with the policy advice provided by the IMF and EU to DCs and EMEs in the Asian crisis and again recently as a result of the global credit crisis. This raises legitimate question about 'doublestandards' in the design and application of crisis measures and overall regulatory policy.

For the full paper, see http://www.centralbanking.com/central-banking/research/1560589/global-regulatory-reform-sight-kern-alexander