Accounting Headline 3.8 discusses how European banks were able to lobby the European Union (EU) so as to be regulated by a ‘watered-down’ version of the accounting standard IAS 39. Explain whether the decision of the EU to embrace a

‘watered-down’ version of the standard is consistent with a ‘public interest theory of regulation perspective’, or whether it can be explained by an alternative theoretical perspective (which you should attempt to identify).