After Brexit, the UK Treasury is considering loosening regulations on alternative asset managers, such as private equity and hedge funds, under the premise that it could stimulate growth. However, critics argue that this approach neglects previous lessons from the 2008 financial crisis where relaxed regulations led to risk accumulation. Currently, there are concerns about shadow banking and increased debt levels in private equity, emphasizing the need for stringent oversight to prevent potential systemic vulnerabilities.
The Treasury's plan to ease regulations on alternative asset managers risks repeating the mistakes of the 2008 financial crisis by allowing systemic risks to accumulate untracked.
The current consultation ignores that expanding the financial sector without significant oversight could lead to increased systemic risks, as evidenced by rising private equity fund volumes.
Collection
[
|
...
]