US regulation of foreign banks follows 'pattern set by the EU', says Fed's Tarullo
Fed governor responds to ‘curious charge of balkanization levelled at the US'
By imposing strict capital requirements on foreign banks operating in the US, the Federal Reserve has followed a "pattern set by the EU", according to Daniel Tarullo, a member of the Fed's board of governors, a day after the bank rejected the capital plans of three European banks, thereby limiting their ability to pay out dividends and buy back shares.
Speaking at Harvard University in Boston yesterday, Tarullo said a "curious charge of ‘Balkanization'... has been levelled at the United States"
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