European Banks Consider Ways to Address U.S. Financial Rules

hurley11-150x150Wall Street Journal (subscription required)
Cornelius Hurley, School of Law, Center for Finance, Law & Policy

European banks are considering new ways to cushion the blow of U.S. financial-safety rules set to kick in as early as next year. The moves are a reaction to planned Federal Reserve rules that will require the U.S. arms of foreign banks to be better capitalized and subject them to annual “stress tests.” European banks for years have run the operations on much thinner capital buffers than their American rivals…

Expert quote:

“I doubt the Fed will fall for this…approach, let alone the foreign banks’ home-country supervisors.”

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