FRANKFURT (Reuters) - Delaying the introduction of the new Basel III banking regulations in the United States is hurting trans-Atlantic relations, Deutsche Bank co-chief executive Juergen Fitschen said on Thursday.
“We can only call on all parties to return to the table as quickly as possible to restore trust,” he said at an event late on Thursday.
The comments come after U.S. banking regulators said earlier this month they did not expect the Basel III rules, designed to make the global banking system more resilient in the aftermath of the financial crisis, to take effect on January 1.
“And when the whole thing is called un-American, I can only say in disbelief, who can still believe in this day and age that there can be purely European or American rules,” he said, referring to comments JPMorgan CEO Jamie Dimon made in a Financial Times interview two months ago.
Fitschen also said that he firmly believed Europe would manage to solve its current crisis, but warned that Germany’s neighbors such as France also needed to contribute their share.
“That is not easy because maybe they have not come to the realization that they must tighten their belts too,” Fitschen said at a business group dinner on Thursday in Frankfurt.
“This must work with France. That is absolutely important for Europe,” he said.
The comments come amid reports that Berlin is worried that too little is being done to revive Europe’s second-biggest economy, and France’s prime minister vowing to tell German Chancellor Angela Merkel that France will reform at its own pace.
Another factor that would contribute to reducing uncertainty in financial markets would be a commitment to a banking union at an upcoming European Union summit in December.
“If they say in December, yes, we back a banking union. And if everything is then set for the ESM (rescue fund), then at least many would realize that there cannot be another banking crash, even though sovereign debt is still too high in many areas,” he said.
Reporting by Maria Sheahan; Editing by Anthony Barker