Skip to main content

Newsroom

January 23, 2014

Exporting U.S. Rules for Foreign Banks

“One of the biggest loopholes on Wall Street may soon close.

“More than three years ago, Congress passed a sweeping overhaul of the financial system that was supposed to leave no big bank untouched. Staggeringly, though, half of the large banks on Wall Street are able to avoid crucial parts of the overhaul — simply because they are foreign.

“In particular, the overseas banks — BarclaysDeutsche Bank and Credit Suisse among them — have not had to comply with parts of the overhaul, known as the Dodd-Frank Act, that aim to strengthen the financial buffer, or capital, that banks must maintain to absorb potential losses on loans and trades.

***

“Supporters of the foreign bank rules, however, respond that it will remove a huge competitive advantage that some European banks have enjoyed for many years. Under the rule, they will now have to hold capital at their American operations that is roughly equivalent to that of their American rivals. “All this does is create a level playing field for banks operating in the United States,” said Dennis M. Kelleher, president of Better Markets, a group that has pressed for stronger curbs on the banking industry.”

***

Read Full NY Times Article Here

In the News
Share

MEDIA REQUESTS

For media inquiries, please contact us at
press@bettermarkets.org or 202-618-6433.

Contact Us

For media inquiries, please contact press@bettermarkets.org or 202-618-6433.

To sign up for our email newsletter, please visit this page.

Name(Required)
This field is for validation purposes and should be left unchanged.

Sign Up — Stay Informed With Our Monthly Newsletter

This field is for validation purposes and should be left unchanged.

For media inquiries,

please contact press@bettermarkets.org or 202-618-6433.

Donate

Help us fight for the public interest in our financial markets, protecting Main Street from Wall Street and avoiding another costly financial collapse and economic crisis, by making a donation today.

Donate Today