The EU are claiming unfairness in the proposed additional Basel III rules
Reuters are reporting that the EU may refuse to sign up to new banking rules because they deem them unfair.
The US is pushing for additional rules to the Basel III regulations so that banks have enough capital to cover their risk. The EU says the rules will be unfair to EU banks and the types of loan portfolios they hold, as they will be deemed more risky than the types of products US banks hold.
An anonymous EU spokesman said;
"If we can't reach a compromise that's acceptable for us, we have to pull the emergency brake and opt out,"
Given the large amount of NPL's floating about, is it any wonder that those outside of Europe are pushing for stricter risk controls? In typical EU fashion, global standard rules are fine unless they impede European businesses.
