European Banks Spend Billions to Get U.S. Units Fit for Fed
By Yalman Onaran
Deutsche Bank AG, Barclays Plc and 11 other foreign banks have spent several billion dollars in the past three years complying with a new Federal Reserve rule that will trap capital in the U.S. and boost costs. Legal, technology and other compliance expenses totaled from $100 million to as much as $500 million at some of the biggest firms affected, according to five people with direct knowledge of the matter. They provided the data on the condition their companies’ individual costs wouldn’t be disclosed…. “That’s a lot of money for each bank, particularly in the current environment when they’re having difficulty making money,” said Karen Shaw Petrou, a managing partner at Washington-based research firm Federal Financial Analytics. “Banks have been spending lots more on compliance in recent years as regulations pile up on them. This takes money away from other tasks like entering new businesses.”
http://www.bloomberg.com/news/articles/2016-06-29/european-banks-spend-billions-to-get-u-s-units-fit-for-the-fed
