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Breakingviews: Barnier naive on banks

Tuesday, Apr 23, 2013 - 04:13

April 23 - The EU’s top financial regulator seems out of touch on banking reform. Michel Barnier says the U.S. should give European banks a break. Breakingviews says history suggests this view may prove naive.

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Deserves -- breaking news is the years so regulator Michel -- out of touch. With regulation of what the US is planning. -- Dominique Kelley joins me to but don't -- This is this is an interesting story arm. Does does -- ain't really thing the we've gone to fall. Com on regulation on what we're expecting evolved banks Boise just getting angry at the way the US is meddling. Well I think. The -- to spin on the wall in terms of well the US is doing hand and then at the moment fruit for awhile I mean banks have. Widely being seem to not enough capital. I'm regulates is in the US in the UK it's all -- look at the experience for Lehman Brothers was that we couldn't the US couldn't get them money out of the UK. Now I think the best way to solve -- is to have banks hold capital in the respective countries separately. -- -- seems to me to be a good idea Bonnie day. I'm not quite sure what he's singing at that perhaps he's skating. You go to all these other things. Maybe that's -- way that we can we we can -- solve all the problems and we don't need something else on top of that the -- make financing more costly in Europe just. Just looking up parts of this lesson that -- read two brits out fest. The rule would seem to represent a radical departure from the existing US policy and consolidated supervision of foreign -- that. It seems to me that he's just upset that they imagining. What. He wants to make sure that everything is done and coordinated and orchestrated at a global level site. That's where -- is coming from he thinks that. Together the EU. United is the US the UK they can all get together on as a team they can make sure the banks are able to be resolved and supervised. But actually in practice we -- already put -- away from us and things like the European banking union that would help from a global standpoint to do all of that stuff to -- miles away. Exactly -- the other one is. It every according from the left so it may frustrate the efforts to ensure a consistent implementation of the Basel III standards across jurisdictions. And -- Having a guy lacks the US team all slow. So I thought two adults and all the balls three stuff. The new European banks and some European banks will say that doctor is in an unfair advantage over us. But you know well I mean they all. Hopefully going to do you. Basel III as well in the US and and that will bring them. Closest to the U. Level -- also the US so far. The banking sector looks in better shape in the Europeans it's a bit ritual this stuff coming from -- about. This is the way that we should do things globally when actually the US -- to be taking them. Habits -- you isn't seen as as well ahead of -- -- I'm -- you that the bottom line -- you think it's night and funny. Well history suggests that the recent history the financial crisis suggests that. Banks off I think was mounting king's phrase global in life but nationally and death and I haven't seen much this -- -- to think of the Cyprus six -- Cyprus -- A much smaller banking system is no global. In any way really but but yes it did have some Russian money I mean that they were very map became a national concern. I'm that was how it was all -- dealt with them in the European Union on that. Occasion decided not to get involved and it doesn't race would fit with Bonnie days. Idea. Is not gonna back down as a I think some like to. I mean I just it just it make it makes you wonder what -- thinking -- I'm and that it would. Pieces like yours are bound to be written about. Sounds sort of what it does seem crass and dusting wrong I I think that. It might be away from -- into trying gets negotiating. Power ahead of the G-20. But we'll have to see. All right Dominic me thinks that -- Elliot breaking news up ranking correspondent that's its -- now. As -- watch our US show at 12:30 eastern sixty very GMC. And it's -- problem sources. Problems.

Breakingviews: Barnier naive on banks

Tuesday, Apr 23, 2013 - 04:13

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