By Huw Jones
LONDON, Feb 1 (Reuters) – U.S. President Barack Obama’s plans to curb proprietary trading will be hard to define and could create regulatory loopholes for banks to exploit, a top European Union official said on Monday.
Obama’s “structural” reform was very different to the regulatory approach adopted by the EU and globally via the G20 group of countries which focuses on toughening up the Basel bank capital rules, said David Wright, deputy chief of the European Commission’s internal market unit.
“This has not been done in the traditional way,” Wright said of the Obama plan.
“It’s going to be difficult to define this… We look forward to seeing the U.S. definition,” Wright told an industry event.
The Commission is coordinating the EU’s response to the financial market crisis, saying the G20 agenda would be its blueprint.