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The transatlantic rift is opening wide in financial regulation

European governments have seemingly concluded that hosting large, risky, and volatile financial firms and markets is not worth it, but the US thinks differently

Mid-Atlantic Rift: the UK and US are moving apart in a financial as well as geological sense, as seen here at Thingvellir National Park in Iceland
Mid-Atlantic Rift: the UK and US are moving apart in a financial as well as geological sense, as seen here at Thingvellir National Park in Iceland Photo: Getty Images

US President Donald Trump made his intentions on financial regulation clear from the very start of his administration. He issued an executive order requiring that, for every new regulation imposed, at least two should be targeted for repeal. No such deregulatory zeal is evident in Europe.

The Economic Growth, Regulatory Relief, and Consumer Protection Act, signed by Trump in May 2018, has, in practice, emphasised the second part of its title over the third.

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