Trans-Pacific Partnership Contains Provison To Help Wall Street Avoid Regulations
By: DSWright, Firedog Lake
Wednesday January 28, 2015 1:00 pm
Try to hide your surprise. One of the reasons the Trans-Pacific Partnership (TPP) is being kept secret is because it has unpopular and reckless policies in it such as deregulating Wall Street. Framed as an effort to harmonize rules for efficiency’s sake the TPP contains rules to prevent “localization” or domestic rules that would restrain financial firms.
Much like Dodd-Frank in the US, many countries have local regulations on how the financial industry can operate in their country. TPP seeks to eliminate such local requirements and instead promote a low and loose universal standard to allow global financial firms and financiers to come and go as they please in each country party to the TPP agreement.
What could go wrong? Surely Wall Street can be trusted to follow difficult to enforce rules that if broken could jeopardize financial markets and the global economy. When has that ever not worked out?