The end of World War II spurred the development of a global economy and corresponding financial ecosystem that reached its apex before the 2007-09 financial crisis. The inability to resolve cross-border issues was an important driver in the crisis. In recognition of these issues, many regulatory initiatives were undertaken to promote financial stability, with the G20 and Financial Stability Board playing a key role.

This paper analyzes recent legal and regulatory developments in the EU that will potentially significantly affect the landscape of the financial services industry in the EU and elsewhere. It focuses on four specific initiatives, which are briefly discussed below, and evaluates these developments in the context of an overarching economic framework that highlights the consequences of these initiatives from the standpoint of its effect on consumer welfare in the EU, in the U.S., and globally.