BRUSSELS, Feb 15 (Reuters) – If U.S. President Barack Obama’s plan to ban proprietary trading at some banks was applied in the European Union, it could be problematic for the bloc’s universal banks, an EU document obtained by Reuters said.
EU finance ministers, following a call from the Netherlands which backs the proposal, will discuss its possible impact on Europe at a meeting on Tuesday but no consensus is expected.
The plan, dubbed the “Volcker rule,” was drafted by White House adviser and former Federal Reserve Chairman Paul Volcker, stunned global markets last month and is already facing resistance in Congress.
EU countries were not consulted and complained that a global approach to rulemaking being spearheaded by the Group of 20 rich and emerging economies was at risk.
Britain, France and Germany have said the approach should not be copied in Europe where many banks combine proprietary trading and commercial banking under one roof.