Regulatory crackdowns in the US and UK have raised fears that a raft of financial institutions will relocate offshore to escape the punitive costs of compliance. US President Barack Obama in June announced plans for a root-and-branch reform of the US financial system, including enhanced powers for the Federal Reserve to monitor risk and supervise large financial institutions.

The President proposed a new Financial Services Oversight Council to keep watch on the system, in contrast to the UK approach, where Chancellor of the Exchequer Alistair Darling is focusing on improved corporate governance rather than new regulatory bodies.