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European Banks Parry U.S. Rules 

February 12, 2014
Max Colchester and David Enrich, The Wall Street Journal

European banks are considering new ways to cushion the blow of U.S. financial-safety rules set to kick in as early as next year.

The moves are a reaction to planned Federal Reserve rules that will require the U.S. arms of foreign banks to be better capitalized and subject them to annual "stress tests." European banks for years have run the operations on much thinner capital buffers than their American rivals.

Among the tactics under consideration, banks including the U.K.'s Barclays BARC.LN -0.64% PLC, Germany's Deutsche Bank AG DBK.XE +1.18% and Switzerland's UBS AG UBSN.VX +1.08% could shore up their U.S. subsidiaries by buying debt from them, according to people familiar with the banks' strategies. Other banks are selling assets or considering moving businesses into legal structures outside the purview of U.S. regulators.

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