Member access

4-Traders Homepage  >  Shares  >  London Stock Exchange  >  London Stock Exchange Group Plc    LSE   GB00B0SWJX34

News SummaryMost relevantAll newsSector news 

LSE CEO: Regulators Should Promote Use Of Equities To Finance Growth

05/24/2012 | 10:29am US/Eastern

The chief executive of London Stock Exchange Group PLC (>> London Stock Exchange Group Plc) Thursday urged regulators to promote the use of equities as a source of companies' financing with the ultimate goal to boost economic growth.

"Governors must reprogram economies to use equities markets to push growth," Xavier Rolet said in a speech given at a conference organized by the International Capital Market Association.

Rolet said a better risk culture for equities as a funding tool should be developed.

He argued that regulation had a role in influencing the preference for the use of debt, rather than equities, to finance companies.

"Fiscal policies induced the use of debt," he said. Since debt was tax deductible, companies were more inclined to borrow money rather than fund their operations through the issuance of equity.

"We need regulations focused on growth," which Rolet said could be achieved if regulators reduced the cost of capital, which would in turn create more jobs.

Rolet's speech comes a day after Italian banks Intesa Sanpaolo SpA (>> Intesa Sanpaolo SpA) and UniCredit SpA (>> UniCredit SpA) said they sold their entire stakes in LSE, helping to send the U.K. exchange's stock sharply lower.

"I would have done the same in their position, given the stock's good performance this year," he said. "I am sure we'll continue to have a good relationship."

-By Giovanni Legorano, Dow Jones Newswires, +39 342 7006537;

React to this article
03/30 Former JP Morgan banker to head Barclays' UK ECM team - source
03/30 LONDON STOCK EXCHANGE : Aequitas NEO Exchange goes live in Canada using full sui..
03/30 LONDON STOCK EXCHANGE : U.K. stocks higher at close of trade; FTSE 100 up 0.45%
03/29 ECB, Bank of Engalnd reach accord on UK clearers handling euro trades
03/27 ECB shelves euro clearing house policy - source
03/26DJEUROPE MARKETS : European Stocks Driven Lower As Global Shares Sell Off
03/26DJLONDON MARKETS : FTSE 100 Sinks For Third Session Amid Global Selloff
03/26DJLONDON MARKETS : FTSE 100 Falls For Third Session Amid Global Selloff
03/26 MARKET COMMENT : London Lower As Oil Prices Rise On Yemen Airstrikes
03/26DJEUROPE MARKETS : European Stocks Driving Sharply Lower As Global Shares Sell Off
Duration : Period :
London Stock Exchange Grou Technical Analysis Chart | LSE | GB00B0SWJX34 | 4-Traders
Income Statement Evolution
More Financials
Dynamic quotes