related previous article ~ Europe Warns US to Speed Up Bank Reform ...(it seems like just yesterday...)...
June 2, 2011
US, Europe agree need to toughen bank capital rules
European Commission official Michel Barnier assured Treasury Secretary Timothy Geithner on Thursday that Europe fully intends to implement tougher bank capital rules embodied in a pact called Basel III.
In a statement after a meeting between Geithner and Barnier, the commissioner responsible for internal markets and services, Treasury also said the two agreed they must make sure that rules calling for derivatives trade to be centrally cleared were met.
"Secretary Geithner was encouraged by Commissioner Barnier's commitment to implementing Basel agreements in full and on time," Treasury said. The Basel III rules, which would make larger banks hold more top-quality capital, have met some resistance in Europe as a possible threat to recovery.
Barnier is scheduled to speak Friday at the Brookings Institution about financial regulation in the European Union, where bank capital requirements are likely to come up once again.
Treasury said the meeting with Barnier found common ground about the need to coordinate regulation of trade in derivatives. The financial instruments, which derive their value from underlying variables, were blamed for causing excess volatility in financial markets during the 2007-2009 financial crisis.
"The discussion underscored that both the EU and U.S. are fully committed to alignment on derivatives regulation," Treasury said.
http://in.reuters.com/article/2011/06/02/usa-treasury-barnier-idINN0227258720110602
