Speaking at fringe meetings, Shadow chief secretary to the Treasury Philip Hammond said he feared the US might switch into over-regulatory mode but that we should not respond in this way in the UK.
Hammond said: “There is every prospect of legislators in the US repeating the error of Sarbanes-Oxley and over-regulating the US. We must not fall into the same trap. There is a real possibility that we can bring in an effective regime which allows London once again to become the preferred place to do business if the US moves into over-regulatory mode which I very much fear.
“It is critical that people in the City who rightly say some of these things are simply the operation of the markets are sensitive to the political environment. We have to show that risk-taking by individuals who stand to make very large amounts of money if they are successful genuinely does involve risk to those individuals.”