“Before the Volcker Rule was finalized on December 2013, a number of foreign banks operating in the U.S. held derisive attitudes toward American regulators. According to a number of bank regulators who were willing to speak to me off the record, European banks were particularly prone to dismissing the importance of U.S. bank rules since they were regulated by their home countries. In a humble admission, these regulators also saidthat before the global financial crisis, U.S. regulators were less demanding of European banks operating in the U.S. than of banks from other countries. The Eurozone crisis has since left little doubt that European banks are subject to economic and country risks just like any other bank,as well as a wide range of financial risks in the credit, operational, liquidity, and legal categories.”
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