Schaeuble Says German Bank Split Law Can Serve as European Model
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Germany’s plan to order banks to separate some of their riskiest businesses from deposits to protect clients could serve as a model for Europe, Finance Minister Wolfgang Schaeuble said.
Starting in 2017, German banks must supply capital and funding for proprietary and high-frequency trading operations as well as some business with hedge funds. The law stops short of ordering banks to split off trading on behalf of clients, as suggested by a panel led by Bank of Finland Governor Erkki Liikanen which advised the European Commission on its proposals.