Europe won’t follow Obama on bank rules -EU source

Jan 22 (Reuters) – “The European Union will not imitate U.S. President Barack Obama’s plan to limit banks’ size and trading activities, because it aims to reduce risk in the sector through other means, an EU source said on Friday.

“Look, we understand the U.S. position and we understand his reasons. But I can’t see the EU going down this route,” the source, who is close to financial policymaking in the EU, told Reuters.”

“The U.S. finds itself a little behind us on this. The Obama plan is not fit for the purpose in the EU.”

The article later states

“The EU source, who declined to be named, said the 27-nation bloc would instead focus on raising banks’ capital requirements and tightening financial regulation, pursuing initiatives already underway in the European Parliament.”

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