NY Fed steps up scrutiny of EU banks’ US branches
The New York Federal Reserve is concerned that the branches may be affected by their parents’ woes with the EU sovereign debt crisis, and intends to scrutinise their funding position more closely. Ultimately, the US regulators want these branches to reduce dependence on their parents and to become self-financed organisations. EU regulators may not be so keen on more money leaving the parent however, which illustrates that meeting the proliferating regulatory demands will be a tricky balancing act for globally active banks.
