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Exporting U.S. Rules for Foreign Banks 

January 23, 2014
Peter Eavis, New York Times

One of the biggest loopholes on Wall Street may soon close.

More than three years ago, Congress passed a sweeping overhaul of the financial system that was supposed to leave no big bank untouched. Staggeringly, though, half of the large banks on Wall Street are able to avoid crucial parts of the overhaul — simply because they are foreign.

In particular, the overseas banks — Barclays, Deutsche Bank and Credit Suisse among them — have not had to comply with parts of the overhaul, known as the Dodd-Frank Act, that aim to strengthen the financial buffer, or capital, that banks must maintain to absorb potential losses on loans and trades.

Now, however, the American authorities appear poised to snatch that advantage away.

Read more: New York Times

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