US sides with EBA on Bank Data Sharing
I’m following up on my post yesterday of the EBA initiative to preserve nominal amounts of bank capital. I noticed that EBA wants to monitor this preservation initiative by requiring individual banks to hand over capital restoration plans.
Now the US too wants access to bank data, reports the FT. This further compromises the autonomy of the home regulators.
“Instead of relying on home regulators to collect data on their behalf, this would effectively mean US authorities could demand unrestricted access to internal messages and trading books at Barclays in London, Deutsche Bank in Frankfurt and Société Générale in Paris.”
Given the track records of EU National regulators this data sharing trend is hardly surprise.
Nor is this new, given that all EBA’s data traffic runs over French servers … and that secrets are never really kept between all EU regulators; with the EC and perhaps also the ECB often sitting in at EBA meetings.