U.S., Europe at odds over global financial reform - by Howard Schneider and David Cho

A feud between the United States and Europe has cast doubt on the likelihood of a comprehensive global response to the financial crisis that nearly sparked a worldwide depression, according to regulators and analysts.

Combined, the disagreements demonstrate how difficult effective global regulation remains in an era in which capital moves easily across borders but the rules for institutions and traders are set by different national governments with their own political priorities.

NOTE EU-Digest: The EU is to be applauded for finally acting against the unscrupulous U.S.-based hedge funds. After all, the financial crises Europe is facing today started in America precisely because of the US lack in having the proper mechanisms to control their manipulative financial industry. If the US Government is still unable to control their own financial industry, Europe at least can bar some of them from doing business in the European Union.

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