When Eliot Spitzer grabs an issue, you know that it has become seriously political. So the news that the New York governor has created a panel of leading industry figures to discuss New York's competitive position - as reported by the Financial Times on Monday - is a telling sign.

For what this panel will do is assess whether New York's regulatory system should be streamlined to improve competitiveness. And one issue under consideration will be whether New York should implement principles-based regulation along the lines of the UK's Financial Services Authority - rather than relying on extensive rule books to define what is banned.