Newsletter January 2011: Governments more to blame for crisis than banks

LONDON – Increased internationalisation of financial regulation risks amplifying future global booms and busts, according to a briefing note published by two London-based research institutes. Global regulations, they say, “lead to global crises as organisations are encouraged to hold similar assets and respond in similar ways when things go wrong. As a result, the new regulation could increase the systemic risk to the world economy.”