Tug of law: EC’s FRTB compromise plan can’t please everyone
Leaked draft consultation unlikely to reconcile the global versus regional bank divide
When siblings argue, parents often try to find an amicable way out. That can be difficult if the two sides stubbornly stick to their opposing views. The European Commission is grappling with such an intractable family argument, as a compromise solution to a controversial overhaul of trading book capital rules may not be enough to bridge a rift in the banking industry.
On one side are global banks wanting to delay the Fundamental Review of the Trading Book (FRTB), which is set to go live in
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