| EU warns US on bank 'protectionism' |
US plans to force overseas banks to hold billions of dollars more capital have drawn a sharp retort from the EU's top financial regulator, who warns it could "spark a protectionist reaction" and damage the global economy.
Michel Barnier, the EU commissioner responsible for financial services, is demanding that Ben Bernanke, the Federal Reserve chairman, rethink a clampdown requiring banks such as Deutsche Bank and Barclays to park extra capital in their US operations.
The transatlantic rift highlights the growing levels of discord between global regulators, whose efforts to protect local taxpayers are raising fears that international finance will be forced to retreat behind national borders.
In a strongly-worded letter seen by the Financial Times, Mr Barnier argues that the Fed plans are "radical departure" from past US policy and stand "substantial contradiction" to efforts to harmonise global rules.
http://link.ft.com/r/EB8122/K9T18U/26E7C4/TUJEXP/HI83PL/B7/h?a1=2013&a2=4&a3=22
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