Role reversal: U.S. leads race to bottom in global bank rules
By John Heltman
The Trump administration’s push to deregulate the banking industry is having a ripple effect internationally as foreign banks are pressing their home jurisdictions to stall implementation of cross-border standards. An Aug. 30 letter obtained by American Banker from a group of 15 large banks based in the European Union — including Barclays, the Royal Bank of Scotland, Societe Generale, Santander, Deutsche Bank and HSBC — urges European Commission Vice President Vladis Dombrovskis to broadly reconsider the applicability of certain capital and liquidity rules to EU-based banks. …“This is just more evidence that the Basel process is fragmenting into national jurisdictions, with each country looking to use the complicated state of the credit risk negotiations to its advantage,” said Karen Shaw Petrou, managing partner at Federal Financial Analytics. “If you believe in international standards and want to give them the benefit of the doubt, then this is certainly a race to the bottom.”