European union angers the us as it tries to control american banks

Wall Street financial giants warned they will not be able to tie up more cash in their operations within the European Union (EU), as proposed by the European Commission (EC). The rules hand

the EU more oversight of foreign firms and are set to cost the likes of Goldman Sachs, Morgan Stanley and JPMorgan, as the banks would need to stump up fresh funds to keep within the bloc.

Similar rules were recently implemented by the US and critics say the EU's reaction is an aggressive reaction. Now American banks say Europe's legislation is at odds with US

requirements. EU WATCHDOG DEMANDS CLARIFICATION OVER BARROSO’S GOLDMAN SACHS JOB A senior executive at a large US bank told the Financial Times: "US rules require the separation of the

corporate [broker-dealer] chain and the bank chain. “The key thing in the EU rules is… the wording in it is that there’s a single intermediate holding company, that’s pretty problematic.” A

separate source at a different US bank said: “Clearly we will argue that it creates conflicts with US legislation and is unnecessary.” European banks are thought to be in favour of the plans

because they hinder their American rivals. RELATED ARTICLES European Commission Vice President Valdis Dombrovskis recently told CNBC: "Europe needs a strong and diverse banking sector

to finance the economy. "We need bank lending for companies to invest, remain competitive and sell into bigger markets and for households to plan ahead. "We have put forward new

risk reduction proposals that build on the agreed global standards while taking into account the specificities of the European banking sector."