Wall Street is likely to exploit differences among national regulators to weaken oversight of their business as governments struggle with anaemic growth and rising unemployment, says Viral Acharya, a professor at New York University’s Stern School of Business.

“Global banks will exploit weaknesses among national regulators to get concessions,” says Acharya.

He says Wall Street needs better regulation and the Volcker rules, which bar banks from trading on their own account, are no panacea to avoid financial crises.

“Banks like leverage,” says Acharya. “Leverage is a way in which the financial sector can extract value through a taxpayer put.”