How Trump and Brexit Could Change Global Bank Rules
by Silla Brush and Alexander Weber
This is how a race to the bottom can start. In Washington, President Donald Trump has vowed to roll back the financial regulations passed after the 2008 crisis. In London, Prime Minister Theresa May, facing a possible exodus of bankers as Britain quits the European Union, has said she might fight any “punitive” trade measures from the EU with tax cuts or policy changes to attract investors and companies…. n a few instances some regulators have conceded there’s room to tweak the U.S. regulations. Daniel Tarullo, who spearheaded many of the most important restrictions at the Federal Reserve before he stepped down in April, said some requirements could be softened for smaller banks. But Trump has been pushing for even bigger changes. On April 21, the president ordered Secretary of the Treasury Steven Mnuchin to review regulations meant to help authorities wind down a failing bank, as well as rules for designating some nonbank financial institutions as systemically important and therefore subject to additional restrictions. That worries policymakers outside the U.S. “The big question on which the Europeans are awaiting clarity is whether the U.S. really goes its own way on questions as pivotal as orderly resolution” of failing firms, says Karen Shaw Petrou, managing partner at Federal Financial Analytics Inc. in Washington.
https://www.bloomberg.com/news/articles/2017-04-28/how-trump-and-brexit-could-change-global-bank-rules
