

Currently released so far... 12689 / 251,287
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
2011/05/01
2011/05/02
2011/05/03
2011/05/04
2011/05/05
2011/05/06
2011/05/07
2011/05/08
2011/05/09
2011/05/10
2011/05/11
2011/05/12
2011/05/13
2011/05/14
2011/05/15
2011/05/16
2011/05/17
2011/05/18
2011/05/19
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sapporo
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
AF
ASEC
AR
AEMR
AMGT
AE
AU
AID
AORC
APER
AS
AM
AFIN
AMED
AJ
AGR
ACOA
ANET
ASIG
ABLD
AL
AA
APECO
AGAO
AY
AGMT
APEC
AINF
AG
ACS
AECL
AFFAIRS
ABUD
ASUP
ADANA
AADP
AMCHAMS
ARF
ASEAN
ADPM
ATRN
ALOW
APCS
ADCO
ACAO
AORG
AROC
AO
AODE
ACABQ
AX
AMEX
AFGHANISTAN
AZ
AND
ARM
AQ
ATFN
AMBASSADOR
ACBAQ
AFSI
AFSN
AC
AUC
ASEX
AER
AVERY
AGRICULTURE
ASCH
AFU
AMG
ATPDEA
ASECKFRDCVISKIRFPHUMSMIGEG
AORL
ADM
AN
AIT
BU
BR
BL
BO
BA
BB
BG
BM
BBSR
BH
BEXP
BK
BD
BTIO
BT
BE
BY
BF
BX
BP
BRUSSELS
BILAT
BIDEN
BC
BMGT
BWC
BN
BTIU
CH
CG
CF
CU
CE
CVIS
CASC
CO
CS
CA
CIDA
CBW
CW
CMGT
CI
CODEL
CY
CPAS
CJAN
CD
CWC
CDG
CIA
CL
CROS
CAPC
CTR
CT
CR
CBSA
CEUDA
COM
CFED
CV
CACS
CARSON
CLINTON
CN
CONS
CM
CAC
CIC
COPUOS
CDC
CONDOLEEZZA
CICTE
COUNTER
COUNTRY
CBE
CKGR
CHR
CVR
COUNTERTERRORISM
CITEL
CLEARANCE
COE
CARICOM
CB
CSW
CITT
CACM
CDB
CJUS
CTM
CAN
CLMT
CBC
CNARC
CIS
EG
EZ
EUN
ECON
ETRD
ECPS
EFIN
ENRG
ETTC
EPET
EINV
EAID
EAIR
EWWT
EU
EAGR
EC
ELAB
EIND
EN
EMIN
ESENV
ENNP
EFIS
ELTN
ET
ECIN
EFTA
ES
EINT
EI
ENGR
ETRDEINVECINPGOVCS
ENVI
ETRDECONWTOCS
ECINECONCS
ELN
ELECTIONS
ENVR
EXTERNAL
EXIM
ETRO
ENIV
ESA
ER
EK
EUR
EFINECONCS
EUMEM
EUREM
EPA
ERNG
ENERG
ECA
ETRC
EINVEFIN
ETC
EAP
ECONOMY
EINN
ECONOMIC
EXBS
ECUN
ENGY
ECONOMICS
EIAR
EINDETRD
ECONEFIN
EURN
EDU
ETRDEINVTINTCS
ECIP
EFIM
EAIDS
EREL
EINVETC
ECONCS
ETRA
EAIG
EUC
ERD
ETRN
EINVECONSENVCSJA
EEPET
EUNCH
IS
IZ
IR
IC
IO
IN
ID
IGAD
IT
ILC
IAEA
ITU
ICAO
IMO
IBRD
IMF
ICJ
IAHRC
ITF
INRA
INRO
IWC
IQ
IV
ICRC
ICTY
INRB
IEFIN
ILO
ITRA
ITALY
IBET
ISRAELI
IL
INTELSAT
IRC
IDP
ICTR
IRAQI
IPR
IIP
INMARSAT
ITPGOV
ITALIAN
INTERNAL
IRS
IA
INTERPOL
IEA
INR
IZPREL
IRAJ
IF
ITPHUM
ISRAEL
IACI
INDO
IDA
ISLAMISTS
KSPR
KNNP
KWBG
KAWK
KISL
KPAO
KN
KS
KIPR
KCRM
KDEM
KIRF
KJUS
KHLS
KSCA
KOMC
KAWC
KV
KFRD
KWMN
KTIP
KPWR
KSUM
KGHG
KTIA
KTFN
KIRC
KCOR
KACT
KMDR
KGIC
KOLY
KUNR
KIDE
KMPI
KPKO
KCFE
KVPR
KRAD
KPAL
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KTEX
KTDB
KFSC
KZ
KSEP
KFLU
KE
KU
KPLS
KRVC
KRIM
KSTH
KG
KFLO
KPOA
KICC
KDDG
KPRV
KTBT
KBCT
KSAF
KMOC
KDRG
KBIO
KREC
KSTC
KVRP
KBTR
KMIG
KENV
KNSD
KCGC
KWAC
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KWMM
KPRP
KNEI
KPAI
KO
KVIR
KX
KMCA
KCRS
KMFO
KID
KCIP
KNAR
KR
KCRCM
KBTS
KSEO
KHDP
KFIN
KOCI
KGIT
KNUP
KPAONZ
KNUC
KNNPMNUC
KERG
KSCI
KTLA
KHIV
KCSY
KTRD
KMRS
KNPP
KJUST
KCMR
KTER
KRCM
KCFC
KSAC
KCHG
KREL
KFTFN
KCOM
KLIG
KDEMAF
KAID
KGCC
KICA
KHUM
KSEC
KPIN
KESS
KDEV
KWWMN
KOM
KWNM
KRFD
KRGY
KIFR
KWMNCS
KPAK
KOMS
KHSA
MPOS
MOPS
MARR
MTCR
MNUC
MASS
MX
MCAP
MAR
MTRE
MASC
MK
MG
MTCRE
MI
MD
MA
MO
MY
MU
ML
MRCRE
MAS
MEDIA
MC
MR
MIL
MW
MARAD
MAPP
MZ
MP
MOPPS
MTS
MLS
MILI
MEPN
MEPI
MEETINGS
MERCOSUR
MT
MCC
MIK
MAPS
MV
MILITARY
MDC
MEPP
MASSMNUC
MUCN
MQADHAFI
NATO
NG
NL
NZ
NT
NW
NO
NU
NS
NPT
NASA
NI
NK
NSG
NE
NORAD
NAFTA
NP
NATIONAL
NSSP
NSF
NA
NGO
NV
NR
NDP
NIPP
NZUS
NH
NC
NEW
NRR
NAR
NATOPREL
NPG
NSC
NPA
NSFO
OPDC
OPRC
OEXC
OTRA
ODIP
OIIP
OVIP
OPIC
OPCW
OAS
OREP
OSCE
OSCI
OES
OFDP
OECD
OCS
OIC
OPAD
OVP
OHUM
OFFICIALS
OIE
OTR
OMIG
OSAC
OBSP
OFDA
ON
OCII
PREL
PGOV
PARM
PINR
PTER
PHUM
PK
PREF
PM
PHSA
PA
PINS
PE
PBTS
PCI
PO
PL
POGOV
PAK
PEL
PGIV
PROP
PP
PBIO
POL
POLITICS
POLICY
PINL
PBT
PMIL
POV
PTBS
PG
POSTS
PALESTINIAN
PROV
PNAT
PINF
PRL
PAS
PDOV
PRAM
PREO
PAHO
PHUMPGOV
PAO
PREFA
PSI
POLITICAL
PAIGH
PARMS
PROG
PTERE
PRGOV
PORG
PS
PGOF
PKFK
PSOE
PEPR
PPA
PINT
PMAR
PRELP
PNG
PFOR
PUNE
PGOVLO
PHUMBA
PSEPC
PNR
POLINT
PGOVE
PHALANAGE
PARTY
PDEM
PECON
PGOC
PY
PLN
PHUH
PF
PHUS
PU
PARTIES
PCUL
PGGV
PSA
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PHUMPREL
RS
RU
RW
REACTION
RCMP
RSO
RO
RP
ROOD
RM
ROBERT
RICE
REGION
RSP
RF
RIGHTS
RIGHTSPOLMIL
RUPREL
RELATIONS
RFE
REPORT
SY
SP
SOCI
SMIG
SNAR
SCUL
SC
SU
SO
SI
SENV
SZ
SW
SA
SR
SF
SEVN
SN
STEINBERG
SEN
SG
SYR
SWE
SK
SH
SNARCS
SAARC
SNARIZ
SPCE
SARS
SNARN
SCRS
SYRIA
SL
SENVKGHG
SAN
ST
SIPDIS
SSA
SPCVIS
SOFA
SANC
SHI
SHUM
SIPRS
TSPA
TSPL
TU
TBIO
TRGY
TPHY
TS
TP
TW
TBID
TI
TF
TZ
TD
TT
TN
TNGD
TC
TX
TH
TL
TIP
THPY
TV
TK
TERRORISM
TO
TRSY
TURKEY
TINT
TFIN
TAGS
TR
US
UNSC
UNGA
UK
UP
UNCHC
UN
UNMIK
UNCSD
UY
USTR
USOAS
UNHRC
UNFCYP
UG
UNAUS
UNESCO
UNIDROIT
UNO
UV
UNHCR
USUN
UZ
USNC
UNCHR
UNCND
UNEP
USEU
USPS
USAID
UE
UNVIE
UAE
UNDP
UNODC
UNCHS
UNFICYP
UNDESCO
UNC
UNPUOS
UNDC
UNICEF
Browse by classification
Community resources
courage is contagious
Viewing cable 09LONDON1828, U.S. NEEDS TO TALK MORE WITH EUROPEAN COMMISSION ON FINANCIAL SERVICES REFORM; PROPOSED CHANGES IN UK UNDER SCRUTINY
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09LONDON1828.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
09LONDON1828 | 2009-08-10 09:46 | 2011-02-04 21:00 | CONFIDENTIAL | Embassy London |
VZCZCXRO8565
PP RUEHAG RUEHROV RUEHSL RUEHSR
DE RUEHLO #1828/01 2220946
ZNY CCCCC ZZH
P 100946Z AUG 09
FM AMEMBASSY LONDON
TO RUEHC/SECSTATE WASHDC PRIORITY 3110
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 03 LONDON 001828
SIPDIS
TREASURY FOR SOBEL, MEYER, WINN
NSC FOR HENNESSEY-NILAND
E.O. 12958: DECL: 08/03/2014
TAGS: ECON EINV PGOV UK
SUBJECT: U.S. NEEDS TO TALK MORE WITH EUROPEAN COMMISSION ON FINANCIAL SERVICES REFORM; PROPOSED CHANGES IN UK UNDER SCRUTINY
Classified By: Economic Minister Counselor Richard Albright for reasons 1.4 b and d.
¶1. (C) Summary. The U.S. needs to ramp up its engagement with the European Commission on financial services reform measures, HMT and City of London officials urged in recent meetings with EMIN and ECONCOUNS. Brussels is moving ahead faster on reform than Washington and London, and more worrying, without sufficient consultations with the U.S. and the UK, Stephen Pickford, Director International Finance, HM Treasury, commented, Stuart Fraser, Chairman, Policy and Resources Committee of the City of London Corporation, encouraged the U.S. to work specifically with European members of the G20, to get its voice heard more in Brussels. UK interlocutors all stressed the need for regulatory convergence between Europe and the U.S., warning that without greater engagement by the U.S., the risk of regulatory arbitrage increases exponentially. In recent meetings, HMT, City of London and other industry officials also raised concern about the plan by Conservative Party, if elected, to abolish the Financial Services Authority and fold its authorities into the Bank of England, which they said, could weaken oversight of the financial services industry, especially in the short term. End Summary.
U.S/UK Not Paying Enough Attention to Brussels ---------------------------------------------
¶2. (C) Stephen Pickford, Director International Finance, HM Treasury, expressed concern that while Washington and London have focused primarily on domestic reform of their financial services industry, Brussels has been drafting legislation that could have far-reaching consequences. The Directive on Alternative Investment Fund Managers (AIFMs) is just one example. The debate over the AIFM has become acrimonious in Brussels, he said. The French feel the directive is too weak; the Germans believe it has just about the right amount of teeth, and the British see it as too wide-ranging in scope. The U.S. should have engaged more with the Commission before the directive was written, but conceded that even the UK had been justifiably criticized by industry for not following and influencing the debate in its early stages. However, when asked by EMIN how the US could usefully engage now, he advised against aggressive USG engagement on AIFMs now. The U.S. would be seen as trying to protect its own self interest. Though the UK also has lost some moral standing, he said it would be best that the UK do the fighting in Brussels. Pickford did acknowledge, however, that the British have no natural allies in Europe on market reform measures. (Comment: Pickford also believed that the UK rather than the U.S. would be a more effective voice on the AIFM given the importance of London's equity firms for the European-wide economy. He also thought that new head of the European Parliament Economic and Monetary Affairs Committee, Sharon Bowles who is from the UK, would be more understanding of London's position. Bowles recently told the FT that there was a risk of "unintended consequences" to the draft directive and that it was time to fix "bits to make it workable.")
¶3. (C) Regarding the AIFM directive, Fraser of the City of London was more optimistic that the directive would be modified. He credited HMG for understanding the ramifications of this directive on London, but thought HMG could do better at building alliances with other non-euro-zone countries such as Poland and Sweden. He said Brussels is being driven by pressures from euro-zone countries, particularly the French, who, he said, see the crisis as opportunity to draw business from London. (Comment: Pickford made nearly the same remark about the French, saying the French see this as their moment to strike back at London's financial dominance.) He commented that a significant part of the problem was that the regulations were being drafted by officials who lacked a full understanding of the derivative and hedge fund markets. Fraser noted that in conversations with Commission officials, he was struck by how quickly they dismissed the need to consult with and coordinate with the U.S. Fraser argued that that the UK and U.S. governments need to increase their engagement with Brussels in a deliberate and scheduled fashion. He criticized HMG for not doing a better job of explaining the importance of London's financial services industry to all of Europe, noting the lingering impression on the continent that financial services is a UK industry, whose failings were now costing all the member states. He viewed this false LONDON 00001828 002 OF 003 impression as motivating some of the unhelpful regulatory impulses coming from Brussels. Without greater engagement by the U.S, Fraser - and Pickford as well - raised concern that regulatory arbitrage would result. The risk exists that Europe would be "walled off" - and firms would have to choose between operating within Europe or elsewhere, not both. Fraser also recommended that the U.S. work bilaterally with all European members of the G20 on financial services reform. By doing so, the U.S. voice would be better heard in and understood by the Commission.
¶4. (C) Pickford also cautioned about precipitous moves by any major economy or bloc to enact rules that affect global markets, and pointedly criticized the U.S. action on accounting standards. He noted that the G20 April Summit Communiqu called for convergence of accounting standards, but the day after the Summit, on April 2, the U.S. Financial Accounting Standards Board eased the mark-to-market rules without consulting other governments. This move had particularly riled the French, he said.
The September G20 Summit - Missing Elements -------------------------------------------
¶5. (C) Pickford raised concern about the insufficient attention given to the winding down of failing firms. There is not yet a global plan for dealing with another Lehman-like collapse. While both the recent Obama Administration and HMT proposals for financial services reform discussed the winding down of firms in the U.S. and UK, respectively, neither had adequately addressed the problem of truly global firms. Pickford also said there needs to be a better understanding of capital transfers. The USG, for example, did a laudable job of netting out U.S. domestic claims on Lehman, but has yet to fully address international claims, he claimed. The UK would like the issue of cross-border winding down of firms high up on the September G20 agenda. Pickford advocated having global firms "write their own wills", saying that if they don't do so voluntarily, G20 governments should require this from "systemically important firms."
¶6. (SBU) Insurance industry oversight also needs to be high up on the September Summit agenda, said Fraser of the City of London. Insurance industry liabilities are a hidden time bomb, he argued, and the cross-border importance of these firms requires coordinated action plans. Prudential PLC executives also asked about insurance oversight in a recent meeting with EMIN and econoffs. James Wilcox, Head of International Public Affairs, and Gordon Scott, Head of EU Regulatory Affairs, said they were monitoring the proposals in the U.S. to create an Office of National Insurance in the Treasury Department and the systemic risk proposals coming from the Administration. They were particularly concerned how those proposals would affect a UK plc with a U.S. subsidiary. (Note: Prudential PLC is a UK-based financial services company, and owns Jackson National Life, based in Michigan.) Scott also noted that Prudential PLC broadly supports the EU regulation of systemic risk, but believes that supervision should be done at the national level, especially given, they said (in contrast to Fraser) that most insurance transactions are not cross border.
The Conservatives' Plan to Abolish the FSA ------------------------------------------
¶7. (SBU) In its July 20 paper outlining proposals to overhaul the UK's financial regulatory framework, Conservative Party Shadow Chancellor Osborne said that if elected, the Conservative party intends to abolish the Financial Services Authority and the tripartite system financial regulatory system (with responsibility shared among HMT, the Bank of England and the FSA) and replace it with a more powerful Bank of England (BOE) and a Consumer Protection Agency (CPA). Fraser from the City of London harshly criticized this proposal. "The Tories feel that just because Gordon Brown created the FSA, they need to tear it down. This is foolish, especially in the midst of a crisis." Elaborating, he noted that a lame-duck FSA would now find it hard to recruit retain staff - just when an experienced FSA staff is needed to step up banking oversight. Andrew McHallum, Deputy Director of the International Financial Services, London - a trade association - raised the same concern: "With the sword of Damocles hanging over their head, who in their right mind would want to stay with the FSA?" There is no need to abolish the FSA, added Fraser. Even if no new regulations were adopted nor greater oversight done, there would not be LONDON 00001828 003 OF 003 an economic crisis of the scale of today's for 10-15 years, he argued. There is just too much risk aversion in the market to permit a new crisis.
¶8. (C) While HMT officials did not comment specifically on the Conservative Party plans, Clive Maxwell, Director of Financial Services, told us that HMT civil service had started engaging with the Tories on policy issues through the well-established pre-election consultation process. He said that such discussions would likely intensify in the autumn and would address the possible ramifications of different policy approaches. Visit London's Classified Website: XXXXXXXXXXXX
LeBaron