French finance minister warns U.S. against unilateral bank deregulation

French Finance Minister Michel Sapin speaks during an interview with Reuters in his office at the Bercy Ministry in Paris, France, October 4, 2016. REUTERS/Jacky Naegelen

DAVOS, Switzerland (Reuters) - France’s finance minister has cautioned incoming U.S. President Donald Trump against taking unilateral steps to deregulate the U.S. financial industry, stressing the need for international coordination.

In an interview with Reuters at the World Economic Forum in Davos, Finance Minister Michel Sapin said regulations agreed among G20 countries in the aftermath of the global financial crisis were vital to prevent future turmoil and could not be reversed by a single member.

“Each government is obviously free to have fiscal, competitiveness and corporate policies,” Sapin said. “But on financial regulation issues, there is international cooperation.”

Sapin added that unilateral moves by Washington “would not be welcome and to a certain point would not be possible.”

France’s central bank governor, Francois Villeroy de Galhau, also expressed concern last month about the incoming U.S. administration respecting new international bank capital requirement rules being negotiated by the Basel Committee of regulatory supervisors.

Reporting by Noah Barkin, writing by Leigh Thomas; Editing by Toby Chopra