Financial regulators and politicians across Europe and Asia are banding together to demand an international role in the oversight of American markets. The subprime meltdown has demonstrated that fluctuations in American markets can wreak havoc the world over, the Times reports, and now international players are wondering why they must shoulder American risk without any say in oversight.
In the past, US regulators have bristled at European or Asian involvement in market oversight, but the credit crisis has emboldened foreign politicians and specialists. French and German economic advisers have called for an international code of conduct for hedge funds, greater transparency in leveraged buyouts, and even nationalized rating agencies. With Washington against the ropes, it might have to yield.