Regulatory Frameworks and Market Dynamics

This chapter explores the differences between the fixed income regulatory frameworks in the U.S. and London, focusing on rehypothecation and its role in financial crises like that of Lehman Brothers. It examines the complexities of market interactions, particularly U.S. Treasuries and currency markets, while also analyzing recent changes in the financial system's control dynamics and their implications. The dialogue offers insights into how historical events and current market behaviors reflect the ongoing turbulence and potential future shifts in the global financial landscape.