As the transatlantic regulatory relationship deteriorates, the conclusion that most observers are reaching is that, even in financial rule-making, power politics trumps the common good. But regulatory divergences are not just a product of national interest; rule-making processes also have a major impact.
WASHINGTON, DC – As 2014 gets underway, signs of a fraying regulatory relationship between the European Union and the United States seem to be everywhere. The US Federal Reserve’s tough new regulations on foreign banks have spurred the European Commission to threaten retaliation. Progress toward reconciling US and EU rules on derivatives – one of the main causes of the financial crisis – has fallen apart. And plans by the EU and the United Kingdom to “ring-fence” bank deposits are poised to depart in form and substance from one another and from the newly unveiled Volcker rule in the US.
WASHINGTON, DC – As 2014 gets underway, signs of a fraying regulatory relationship between the European Union and the United States seem to be everywhere. The US Federal Reserve’s tough new regulations on foreign banks have spurred the European Commission to threaten retaliation. Progress toward reconciling US and EU rules on derivatives – one of the main causes of the financial crisis – has fallen apart. And plans by the EU and the United Kingdom to “ring-fence” bank deposits are poised to depart in form and substance from one another and from the newly unveiled Volcker rule in the US.