Regulation: Race to the bottom?

If rules are interpreted so 'flexibly' in the USA it will be interesting to see how 'Europe' reacts (if the sleepy bureaucrats there even notice or care). Apart from the problem that Brexit will soon loom over any regulation in 'Europe', the response could be either to loosen rules/interpretations as well or demand that US entities comply with stricter rules designed in Europe. And what if the UK goes for a laxer regulatory environment? Every bloc will try to help his financial firms or bloc those from the other blocs, interesting times indeed!
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