As long as the same rules apply across the board it can’t be protectionist, can it?
Michael Gibson is the head of banking supervision at the Fed speaking on the release of new rules for overseas banks.
Janet Yellen also commented on the announcement via prepared remarks stating that the rules were there to prevent
“the sudden failure or near failure of large financial institutions which can have destabilizing effects on the financial system and harm the broader economy. The final rule would help address these sources of vulnerability. In developing the requirements for both domestic and foreign banking organizations, the (Fed) has sought to strengthen U.S. financial stability and reinforce its longstanding policy of national treatment and equality of competitive opportunity between the U.S. operations of foreign banking organizations and U.S. banking firms.”
I guess we’ll have to see the reaction from the banks over the rules but as of now they’re pretty much toe-ing the line on regulation.
