Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

02 November 2010

Joint declaration of Commissioner Michel Barnier and U.S. Treasury Secretary Tim Geithner


Default: Change to:


They reiterated that the United States and the European Union have a special responsibility to promote and implement stronger global financial standards, reduce the scope for regulatory arbitrage and work towards greater regulatory convergence and consistency.


They reviewed the progress in implementing the G20 financial regulatory commitments. In particular, they noted the significant achievements reached on both sides of the Atlantic - in the United States with the enactment of a vast set of financial reforms in the Dodd-Frank Act and in Europe with the approval of several legislative measures and an extensive ongoing legislative agenda. They look forward to a productive trans-Atlantic dialogue among their new supervisory structures.
They welcomed the agreement reached in the Basel Committee on Banking Supervision on September 12, 2010 on stronger capital and liquidity requirements. They reaffirmed their intention to implement the agreement in the respective jurisdictions in accordance with the internationally-agreed timing. Both sides agreed to a December 2011 implementation date for the Basel trading book rules.
They agreed on the importance of robust crisis management mechanisms and to implement strong resolution regimes, as endorsed by G20 leaders in Toronto, which require additional resolution powers and expanded institutional capacity. They reiterated that no firm is too big or too complicated to fail and that taxpayers should not bear the costs of resolutions. They agreed that systemically important global financial institutions must improve their capacity to absorb losses and be subject to enhanced supervision and regular stress tests.
They reaffirmed their commitment to continue their strong and close bilateral co-operation on regulatory reform in the OTC derivatives markets. This co-operation has allowed for the proposed new rules regarding the clearing of over-the-counter derivatives and the development and supervision of derivatives infrastructure to be consistent and implemented in an open, convergent, and non-discriminatory manner. They confirmed their commitment to achieve convergence during the implementation and the finalisation of all the OTC derivatives reforms on both sides of the Atlantic. They reaffirmed their support for the G20 Leaders' commitments on accounting convergence.
Finally, while welcoming the important step made by the European Member States and the European Parliament in negotiations on the Alternative Investment Fund Management Directive, they reaffirmed their on-going commitment to the principle of non-discrimination in current discussions as well as in the future development and implementation of rules for fund managers and funds, in recognition of the importance of maintaining a global level playing field.


© European Commission


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment