US Wants World Banks To Adopt Strong Regulatory Standards

The White House signaled on Thursday that the United States will spend the next year seeking to make sure that foreign countries implement tough new standards for their banks and financial markets.

“We want a global race to the top,” Treasury Secretary Jacob Lew said in a speech to the Pew Charitable Trust. “Other countries need comparably strong standards and mechanisms to address risks that reach across borders,” he added.

U.S. banks routinely complain that they are being put at a competitive disadvantage relative to their foreign peers by the White House response to the financial crisis and the Dodd-Frank reform law. U.S. regulators are set to complete work next week on the long-awaited Volcker rule.

Proponents of stronger regulation, however, have long argued that foreign countries compete to ease regulations of their domestic banks, calling it a “race to the bottom” on standards and oversight.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu