What is the most likely basis for the concerns noted in Statement 3?

A. Externalities B. Regulatory arbitrage C. Informational friction

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Tiu Asset Management (TAM) recently hired Jonna Yun. Yun is a member of TAM's Global Equity portfolio team and is assigned the task of analyzing the effects of regulation on the U.S. financial services sector. In her first report to the team, Yun makes the following statements: Statement 1: "The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), enacted on 21 July 2010 by the U.S. Congress, will have a significant effect on U.S. banks and other financial services firms." Statement 2: "The U.S. Securities and Exchange Commission (SEC) allocates certain regulatory responsibilities to the Financial Industry Regulatory Authority (FINRA), with the goal of ensuring that the securities industry operates fairly and honestly." Statement 3: "The Dodd-Frank Act called for derivatives reforms, including shifting from bilateral to centralized derivatives settlement, by July 2011. The G-20 called for action by its members on derivatives reform by year-end 2012. The accelerated time line of the Dodd-Frank Act concerned some U.S. firms." Statement 4: "Regulators use various tools to intervene in the financial services sector." Statement 5: "Regulations may bring benefits to the U.S. economy, but they may also have unanticipated costly effects." Statement 6: "Regulation Q imposed a ceiling on interest rates paid by banks for certain bank deposits."