FURIOUS American banks are fighting back against burdensome Brussels plans, which would allow European regulators to exert more control over foreign lenders.
Wall Street financial giants warned they will not be able to tie up more cash in their operations within the European Union (EU), as proposed by the European Commission (EC).
The rules hand the EU more oversight of foreign firms and are set to cost the likes of Goldman Sachs, Morgan Stanley and JPMorgan, as the banks would need to stump up fresh funds to keep within the bloc.
Similar rules were recently implemented by the US and critics say the EU’s reaction is an aggressive reaction.
Now American banks say Europe’s legislation is at odds with US requirements.
A senior executive at a large US bank told the Financial Times: “US rules require the separation of the corporate [broker-dealer] chain and the bank chain.
European banks are thought to be in favour of the plans because they hinder their American rivals.
European Commission Vice President Valdis Dombrovskis recently told CNBC: “Europe needs a strong and diverse banking sector to finance the economy.”
Full article: Now pushy European Union angers the US as it tries to control AMERICAN banks (Express)