Global Banking Under Siege as Nations Tighten Local Rules – Bloomberg 12-05-12

Salient to Investors:

Mayra Rodriguez Valladares at MRV Associates said being big and global isn’t what it used to be, and sees global banks jettisoning divisions abroad and at home. UBS, Citigroup and RBS are reversing decades of global expansion.

Charles Dallara at the Institute of International Finance said globalization of financial markets said reversing decades of going global will be quicker.

Switzerland’ s and the UK’s banking systems are each 5 times GDP.

Kim Olson at Deloitte & Touche said meeting multiple local requirements could mean global banks will have to maintain more capital as the new standard will be very costly for foreign banks.

Countries from Brazil to the Philippines have sought to manage capital inflows inflating their currencies and threatening to create asset bubbles. The IMF reversed its historic support for unrestricted flows of money across borders.

Sheila Bair said that when the system blows up, every country ring-fences the assets and liabilities in their jurisdiction anyway.

Read the full article at http://www.bloomberg.com/news/2012-12-05/global-banking-under-siege-as-nations-tighten-local-rules.html.

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