Volume 30 (2009) / Issue 4
Both the US and the UK initially responded to the current global financial crisis with the use of existing financial laws, but have had to come out with much bigger and more comprehensive measures as it reached global proportions. Fresh and bolder legal initiatives have been needed to tackle the serious erosion of confidence and trust in their financial systems and, indeed, the global financial system. A carrot and stick approach characterised by financial support for financial institutions making renewed contributions to the flow of liquidity between themselves and general businesses and enhanced disclosure obligations is being implemented. This article looks at the background and describes the US and UK responses before pondering the future of Western capitalism.
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