“Financial regulation must serve the overall economy and society. Yet, despite the financial crisis, Europe still prioritises financial sector special interests. The game plays out as follows: governments announce a regulation such as a financial transaction tax. Financial sector representatives complain, often spreading misleading messages. The proposed tax then easily becomes ineffective. Whilst governments claim to act on behalf of society they are in fact kowtowing to financial sector special interests. This is the opposite of good governance. It is regulatory capture.”
Very good article in Open Democracy about the financial transaction (or ‘Tobin’) tax and financial reform.
See on www.opendemocracy.net