|Key Issue at Stake
|Tactics of Lobbyists
|Did finance win or lose?
|Alternative Investment Fund Managers Directive
|To regulate hedge funds and private equity firms, to stop tax evasion and implement rules of how much capital they should hold.
|European Venture Capital Association EVCA (private equity funds)
AIMA (hedge funds)
US and UK State Lobbying of EU
On behalf of UK, the US Treasury Secretary Timothy Geithner warned EU heads of state that new rules could lead to a trade war
Directive massively watered down and benefited hedge funds
|Basel Banking Regulation in 2010
|Focused on capital requirements, i.e. the amount of capital banks must hold as a proportion of their assets and liabilities.
|Institute for International Finance
|Misinformation: IIF issued report warning reforms could lead to millions of jobs lost and a slowdown in growth. Warnings shown to be false by BIS
The capital requirements imposed were far too low
|Bankers Bonuses Cap 2013
|Rule to limit bonuses to 100% of salaries
|British Financial lobbying groups via UK government.
|The fight was led by the British government. They even threatened to sue EU.
Britain’s financial services industry spent £92.8m+ and employed 800 lobbyists
Banks were able to redefine bonuses as ‘role-based pay’, or simply increase salaries in other ways.
|Reform of accounting and auditing rules 2013
|Regulation to break cosy relationships between the auditors and the big banks and implement a ban on accountancy firms giving tax advice to same companies they audited
|Audit Firms and British Conservative party
|Misinformation: Ernst and Young (EY) warned could cost more than €16bn.
The EU regulation adopted is weak and full of loopholes.
|2012 Proposal to Break up Biggest Banks
|Proposal to separate retail and investment banking, to prevent banks from using customers money to invest in risky products
|Intense Lobbying at the national level in Germany, France, and the UK.
Negotiations broke down and the proposal was never implemented
|Financial Transaction Tax
|Proposal for a tiny tax on all transactions on financial markets, to raise funds and prevent speculative and destabilising transactions. Could raise $23.5 billion
|Global Financial Markets Association
Fédération Bancaire Française
|Misinformation: GFMA report claimed FTT would claim 0.5 per cent of estimated growth
National Level Lobbying: Fédération Bancaire Française argued a tax would cripple the development of the French financial sector
FTT has been stalled.