Today, European financiers were basically told — next year, the stress tests will be tougher, and you’re not going to get a regulatory vacation until at least 2013.”European banks already groaning under the weight of new laws face another two years of heavy rulemaking before regulators call it a day,” Reuters reported.
But the European Commission does see “a regulatory pause” after 2012.
The news, though not a surprise, would hardly have been welcomed by bankers and traders who feel like they’ve already been put through the regulatory ring more than enough.
There’s a man inside Goldman Sachs, however, that is actually sympathetic to the regulators.
Maybe its because he thinks they have a task that could only be achieved with a miracle.
Managing director Gerald Corrigan said that achieving the four pillars of financial stability (in his opinion: strong capital and liquidity rules; contingency plans; effective bank resolution powers; and coordination and cooperation between supervisors) is akin to “climbing mount Everest with sneakers on.”
Ie. Totally impossible.