Attention Economy


Sunday, June 14, 2015

Regulatory Overreach and the Law of Unintended Consequences

US financial regulations are adversely affecting international finance and foreign economies:
From the FT piece - Mexico: Clearing out
“… Since then, major financial institutions have scaled back or shut down businesses in Mexico deemed as too risky. But that has produced unintended consequences, often hurting individuals and businesses that have limited access to the global banking system.
Even some US authorities have privately told bank officials that they have gone too far and they never meant for financial institutions to eliminate services, according to people familiar with the conversations. But after paying billions of dollars’ worth of fines, banks are not in the mood to take any chances.”

Related:
http://www.economist.com/news/finance-and-economics/21653673-bank-rejects-american-accusations-it-abetted-financial-crime-fearful