The US crisis has made at least some folks across the Altantic ask “What would Europe do?” If a BNP, HSBC, or UBS ran into life-threatening liquidity problems, could Europe generate a coordinated response? The European-based banks were quick to seek a role in the US bailout/buyout –whatever. Would London treat American or German banks the same as English-headquartered institutions if roles were reversed? It becomes painfully clear in a situation like this that Europe’s talk of seeking cross-border agreements is no substitute for a European authority with power to act.
At Sibos a panel asked if Europe needed an SEC of its own, which participants agreed really meant to ask whether Europe needed an effective regulator – no one was giving US regulation much credit last week. The issue should remain alive and spur the Europeans to move beyond talk fests and loose agreements.

Filed under: Technology