Reuters reports that responding to attacks in the U.S. Congress on London's regulatory record, European policymakers, analysts and industry officials called the American comments ill-advised and politically driven.
'As the old saying goes, it is like the pot calling the kettle black', analysts at Mediobanca said.
A hearing in Congress - on how supervisors failed to spot the buildup of $2bn in derivatives losses at a London unit of U.S. bank JPMorgan - heard a top regulator and MPs describe London as offering a loophole American banks eagerly exploit.
'It seems to be that every big trading disaster happens in London', Carolyn Maloney, a Democratic lawmaker told Tuesday's hearing.
So let's take a quick look at some of the world's biggest trading disasters (excluding all those subprime losses which caused the financial crisis and were brought about by wrong-way bets on the U.S. housing market):
1. Amaranth Advisors (Brian Hunter) - $6.5bn (Gas futures) 2006 (U.S.)
2. Bank Negara Malaysia - $6.2bn (mostly currencies) 1992-93 (Malaysia)
3. Societe Generale (Jerome Kerviel) - $5.9bn (European index futures) 2008 (France)
4. Long Term Capital Management - $4.6bn (Interest rate and equity derivatives) 1998 (U.S.)
5. Credit Suisse - $2.65bn (mispriced debt securities) 2008 (UK)
6. Sumitomo Corporation - $2.6bn (Copper futures) 1996 (Japan)
7. Bawag - $2.5bn (Currency and interest rate swaps) 2006 (Austria)
8. UBS - $2.3bn (Unauthorised equities trading) (UK)
=9. Citic Pacific - $2bn (FX) 2008 (China)
=9. JPMorgan - $2bn (Synthetic Credit Securities) (UK)
=11. Metallgesellscahft - $1.6bn (Oil futures) 1993 (Germany)
=11 Sowood Capital Management - $1.6bn (Debt securities) (U.S)
And the most famous trading disaster of all ? Nick Leeson bring down Barings - from Singapore.
You were saying, Congresswoman ?