New York (HedgeCo.net) – More than 2000 people in the financial industry were polled in an extensive global survey which found more than half of the hedge fund industry experts lack confidence in the US administration’s ability to construct new practical regulation methods. The poll shows that the world’s top financial industry experts do not believe that Barack Obama and his administration have created a viable regulatory framework through its US financial reform bill.
“The results suggest bankers and traders the world over see the Reform Bill as something that will not make enough of an impact for real change,” says Chris Pilling, CEO at Complinet.
“The experts we surveyed know the financial sector better than politicians, and the results show they felt disillusioned by the bill and those who were writing it even before it was passed.”
The majority of those polled said the results of the reforms – which have taken months to pass – will have no effect on the culture of the financial services industry in America and more than half said they do not even support the bill.
The results have been published in the immediate wake of the biggest overhaul of American financial regulation in decades.
60 percent of the financial experts did support Obama on one point – agreeing that it is important to prevent firms from becoming too big to fail. The reforms have given the government powers to disband a bank so big its failure could threaten the economy.
However many other statistics in the survey make bleak reading. 78 percent said smaller firms will be adversely affected by the new regulations and half agreed that the global banking community would not be able to cope with another crisis in the next 12 months – a worrying statistic as many of the world’s economies continue to balance on a knife-edge.
“The bill has over 500 new regulations, many of them aimed at protecting the consumer in the event of a future crash. But those in the industry clearly think these reforms will limit their ability to do their job effectively and increase economic growth.”
The poll by Complinet, a Thompson Reuters business, questioned more than 2,000 leading figures from the banking world as the reforms entered their final days.
Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
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