The Securities and Exchange Commission (SEC)'s charges against Goldman Sachs lend impetus to the call for tighter banking regulation, says Cazenove's Paul Harvey.
The head of credit and manager of the firm's Strategic Bond fund says stricter oversight will benefit the holders of bank bonds. "I have been surprised the events of the last two years have not resulted in greater regulation and that the treatment of risky assets has not materially changed and leverage credit hedge funds have not been treated like banks yet," he says. "I believe the Goldman Sachs CDO scandal will be a turning point and in the next two years regulation around bank capitalisation and credit default swap restrictions will gain traction. "Whatever the outcome of this i...
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