Trump move stirs fear of threat to new global standards on banking
London — President Donald Trump’s review of post-crisis banking rules could sound the death knell for new global standards being finalised and rip apart a common approach to regulating international lenders, say bankers and regulators. Central banks and watchdogs round the world have for eight years been drawing up regulations to avert a repeat of the 2007-09 financial crisis. Now it is feared the project could unravel with Trump saying he wants the US to row back on capital rules. Trump’s order for a regulatory review to overcome what he sees as obstacles to lending came as banking watchdogs try to complete the final piece of global capital requirements, known as Basel III. The US wants to shrink the banking rule book and it is doubted that proposed Basel rules can make it over the finishing line next month if not backed by the US. Without support from the world’s biggest capital market, other countries would be less willing to commit too. European policymakers disagree with that c...
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