EU moves may spur Trump to keep his promise to roll back banking regulation
London — The European Union’s plan to grant banks concessions from global standards may encourage president-elect Donald Trump to follow through on his pledge to roll back regulation in the US The EU’s executive arm blunted a number of international rules on capital, leverage and liquidity in draft legislation introduced last week, arguing that the alterations were needed to promote growth and jobs. Trump’s advisers are using the same logic to justify a plan to scrap the Dodd-Frank Act, the centrepiece of the US response to the financial crisis. One such EU change with the potential to spur a US policy shift is a cut in the amount of capital banks must hold for derivatives they handle for clients that are settled at third-party clearinghouses. The EU has taken the lead in softening the rule, potentially saving its banks billions of dollars and putting pressure on the US and the Basel Committee on Banking Supervision to follow suit or risk fracturing the global financial framework. "...
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