Hank Paulson: Beware regulatory conflict, 'financial protectionism,' FT reports

Former U.S. Treasury secretary Hank Paulson warned that competing financial regulations could “devolve into financial protectionism”, serving narrow national interests of companies and regulators while hurting the public. He told the Financial Times that reforms put in place after the 2008 crisis could lead to “walling off markets, constricting cross-border access to capital and conflicting requirements for global firms” while supporting “regulators, exchange, clearing houses or national financial institutions”. He approved of the sharp increase in U.S. capital requirements enforced by the Fed. He said he was “much more concerned” with the repo market, which investment banks use to fund their operations.