Japan says US Volcker Rule plan doesn't grant enough relief for overseas firms

23 October 2018 7:16am
Japanese authorities said that Trump-appointed financial regulators’ proposal to ease the Volcker Rule doesn’t go far enough to permit transactions that pose no potential harm to the US, echoing arguments made by foreign banks.

Japan’s central bank and its Financial Services Agency, which oversees the banking, securities and insurance sectors, objected that the plan would still curb activities by foreign banks’ units and affiliates in the US that present no threat.

“This excessive extraterritorial application of the Volcker Rule places an undue burden on foreign financial institutions,” their recent letter said. “Such entities should be exempted from the rule because they pose no material risk to the U.S. financial system.”