ABSTRACT
Regulatory agencies that challenged such a prevailing political orthodoxy were thus in danger of attack from all quarters. is was con‡rmed by the governor of the Bank of England, who emphasized the weaknesses of regulators when he told the Treasury Committee, “Any bank that had been threatened by a regulator because it was taking excessive risks would have had PR machines out in full force, Westminster and the Government would have been lobbied, it would have been a lonely job being a regulator” (House of Commons, Treasury Committee, 2009, p. 12). is political pressure may also be facilitated by governments that compete to create business-friendly ‡nancial centers such as London2 and New York.
