Nomura's Alexander Warns of Regulation Race to the Bottom

The transcript discusses the importance of maintaining global standards in competitive markets to avoid a race to the bottom. It highlights the origin of the Basel system, which was established to address low capital standards in Japanese banks during the 1980s. The need for international coordination in banking regulations is emphasized to prevent systemic risks. The transcript also explores potential regulatory changes under the Trump administration, acknowledging that while no law is perfect, fundamental principles like higher capital standards are crucial. The role of FSOC in managing systemic risks is also discussed.

What are the implications of not having common rules in global markets?

How did the perception of Japanese banks influence the Basel system?

What is the significance of maintaining higher capital standards globally?

In what ways can changes to capital standards impact smaller financial institutions?

What challenges arise from regulating different parts of the financial system differently?