Why the Financial Regulation Proposal is Unsatisfying

Wall Street’s embrace of foreign markets makes it nearly impossible for national regulators to keep watch over what’s being sold abroad and to whom.

This sentence comes from one of the most important stories BusinessWeek has run this year, “The Perils of Global Banking,” by David Henry and Matthew Goldstein. The story lays out, in precise detail, just how a globespanning financial firm like Lehman escapes the grasp of national regulators during good times—and how it leaves behind an almost indigestible global mess for regulators when things turn bad.

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