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Opinion
Lionel Laurent

Europe's Bankers Should Fear a President Trump

Regulatory arbitrage is a big risk.

This U.S. election matters to bankers and traders across Europe, and not just because of market volatility or political instability. Like Brexit, it could mean European finance losing yet more business to New York.

Despite mixed messages from both candidates on whether life should be made harder or easier for the banking industry, there's an increasingly common view that a Donald Trump win would be "good" for Wall Street -- even if it shocks the financial markets at first. The billionaire has said repeatedly he would roll back the post-crisis banking rule book of Dodd-Frank if elected. He has pledged to cut red tape "massively." Sure, Trump will promise the moon if it wins votes, but the stock market seems to take the view that a Trump win would be good for banks, as my colleague Oliver Renick points out.