Risky business bites back

The list of casualties from the current market turmoil is growing, with some of the largest names in the business turning to smaller competitors and governments for help. IR&A takes a look at recent events and finds that talk of regulatory reform has already begun

After a tumultuous few weeks in global financial markets, the inevitable questions about the role of regulation are in full swing. With the Federal Reserve bailout of AIG, and its apparent refusal to come to the rescue of Lehman Brothers, to the integral part played by the UK government and the Financial Services Authority in the merger of HBOS and Lloyds TSB and the temporary ban on short-selling, it is no surprise that regulation is occupying as many headlines as the main stories themselves.