The various bank structural reforms adopted in different parts of the world have each tried to regulate proprietary investment banking or trading activities in order to preserve financial stability and to “moralize” the financial world. The US approach to bank structural reform, espoused by Paul Volcker, focuses on prohibition. In Europe, however, France, Germany, Belgium and the United Kingdom focus on ring-fencing, though each country has its own specific scope and purpose.
Mayer Brown’s Global Financial Markets Initiative helps clients deal with the legal and business challenges resulting from the ongoing turbulence in worldwide financial markets. By mobilizing the firm’s global resources from multiple practices and offices, the initiative provides clients with knowledgeable and timely counsel on a broad spectrum of their legal needs.In the first two parts of our three-part GFMI series on global developments in bank structural reform, we considered the European Union’s proposal for legislation and the UK’s position. Please join us for the final part of our series as François-Régis Gonon of our Paris office, Charles-Albert Helleputte of our Brussels office and Andreas Lange of our Frankfurt office will review the ring-fencing approaches of these countries and compare them with the US prohibition approach.