James D. Cox, a securities law expert at Duke Law School who returned this week from teaching corporate law in Europe, said the shift to international rules amounted to “outsourcing safety standards.”
“We would not for a moment tolerate having American auto safety standards set by China or India,” he said. “Why should we do it for financial safety standards? There has to be some accountability.”...
Senator Carl Levin, Democrat of Michigan, said the proposals would “weaken the pressure for credible oversight” of the markets and their regulators.
“This is a very, very serious problem,” Mr. Levin said. “We’ve had so many losses to investors based on inadequate oversight. We can’t proceed to give control of regulation — to delegate or cede control — to bodies that are not accountable. If this is delegated to regulators overseas, it weakens our ability to put pressure on the regulators to do what the law requires them to do.”
What's interesting about these quotes is how much we in fact do outsource our food and product safety to less-well-regulated jurisdictions. Some have in fact been quite open about this as an intentional strategy to save money.