This is the accepted version of the paper.This version of the publication may differ from the final published version. DRAFT Abstract The power of financial industry groups is a subject of widespread academic and public debate. Existing international political economy (IPE) research has highlighted how different resources, institutions and structural features allow financial industry groups to influence financial regulatory policymaking. In so doing, however, this literature routinely tends to neglect the wider array of interest groups beyond the particular financial industry groups being regulated. Actor plurality is usually assumed to be low or inconsequential. Such an assumption obscures the important role that actor plurality may play in the policymaking process. We present new quantitative and qualitative evidence demonstrating how global financial regulatory politics is more plural than most existing depictions would suggest. Actor plurality can have significant effects in 'leveraging' the influence of financial industry groups which are often able to tie their interests with those of other private sector groups affected indirectly by the regulation in question. We illustrate this underappreciated facet of financial industry power through a variety of case-based evidence from the formation of banking and derivatives rules in various jurisdictions, both before and after the The recent global financial crisis has contributed to a resurgence of interest in financial sector industry groups such as banks, credit rating agencies, and hedge funds, and the influence these groups and their associations exercise over the shape of contemporary financial regulation. Permanent repository linkConjectures regarding the power of these groups are widespread within the international political economy (IPE) literature, and numerous authors have debated how different resources, institutions and structural features of contemporary economies enable financial industry groups to influence the regulations to which they are subject.Such attempts by IPE scholars to explain the power and influence of the financial industry on regulatory outcomes have traditionally concentrated their analysis on a rather narrow set of financial sector actors. An implicit, and often untested, assumption informing most of the literature is that collective action problems, resource and information asymmetries, and exclusionary institutional contexts constrain the plurality of actors involved in the financial regulatory policymaking process. As a result, most depictions represent the financial regulatory domain as a very non-plural place, dominated by a few all-powerful financial industry groups influencing regulation they are subject to at will, while other non-financial actors have been assumed away and left absent from most analyses.Contrary to this perspective, in this article we contend that the mobilization of a plurality of private sector groups both inside and outside of the financial sector is a key characteristic of the financial regulatory poli...
This is the unspecified version of the paper.This version of the publication may differ from the final published version. Acknowledgments: For their helpful comments, we are very grateful to two anonymous reviewers and the IO editors. Permanent repository link
This is the accepted version of the paper.This version of the publication may differ from the final published version. Permanent repository link AbstractExisting literature has offered a variety of claims regarding why financial regulatory politics features a relative dominance of the regulated financial industry. In this article we explore the broader interest group environment in which financial industry advocacy operates. Using new data on interest group participation in financial regulatory consultations, we provide the first comprehensive analysis of the ecology of interest groups that populate financial regulatory policymaking. Through a new measure of 'mobilized dissent' we find evidence that the level of interest group pluralism in financial regulatory policymaking is constrained by the limited mobilization of voices outside of the business community. We analyze how mobilized dissent toward the regulated financial industry changes in response to different institutional environments. While technical complexity, institutional context, and the global financial crisis are found to impact the level of mobilized dissent, the impact of these environmental conditions varies across different groups. This analysis reveals not only that organized opposition to the financial industry is relatively weak but also that it is relatively disjointed.
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