European Union applies pressure on US over financial regulations
Fearful that the US will delay implementing Basel III, as they did with Basel II, European lawmakers are trying to apply pressure on the US, reports Reuters.
“In the context of the reluctant implementation of Basel III by the United States of America, it is necessary to ensure that the economy and the banking system in the Union are not placed at a competitive disadvantage,” says Othmar Karas in a new report.
The comment period on proposed rules issued by the Federal Reserve will not end until March 31, 2012. If the US fails to act in a timely fashion, banks in the European Union might be exempt from complying with tougher global capital and liquidity rules.