The US and the UK legislatures have each accepted that any form of bank separation involves a balancing of the costs associated with losing synergies and the benefits of improving financial stability through separation. The US approach to bank structural reform, espoused by Paul Volcker, focuses on prohibition (or owner separation); the UK approach, espoused by John Vickers, focuses on ring-fencing (or functional separation/subsidiarization), and regulates a broader range of wholesale and investment banking activities than does the US approach.
Please join us for part two of our three-part GFMI series on global developments in bank structural reform. Alexandria Carr of our London office and David Sahr of our London and Washington offices will review the key similarities and differences between the US and UK approaches and address which approach best achieves this balance.
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.