US rules on foreign banks criticised by SRB’s König
Local holding companies are a “step in the wrong direction”, says European resolution chief
The US has taken "a step in the wrong direction" by requiring foreign banks to set up a local holding company, according to Elke König, chair of the eurozone's bank resolution authority, the Single Resolution Board (SRB). If the holding company is used to ring-fence US assets and liabilities, this could jeopardise the effective cross-border resolution of a stricken bank, she warns in an interview.
The rules on intermediate holding companies (IHC) affect foreign banks with more than $50 billion
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