U.S. President Donald Trump’s move to deregulate U.S. financial markets could put European banks at a disadvantage, Hans-Walter Peters, the chief executive of the private Hamburg-based Berenberg Bank, told Handelsblatt.
“We have to make sure that European banks aren’t suddenly in a worse position than the U.S. competition,” said Hans-Walter Peters, who also heads the association of private German banks.
He warned that the U.S. president’s push to repeal the 2010 Dodd-Frank Act, which put checks on Wall Street after the 2008 financial crisis, could destabilize global financial markets.
“The internationally agreed regulation is important for financial market stability,” Mr. Peters said. “We should not flippantly put it at risk.”
But the bank executive said he supports a review of regulation passed after the financial crisis to get rid of any inconsistencies and unnecessary red tape.
“The regulation should be reviewed for contradictions and onerous bureaucracy,” Mr. Peters said. “We need fair conditions for competition that means adequate regulation.”
The Dodd-Frank Act was a legislative milestone during the Obama administration. The legislation implemented a set of bank regulations agreed by the G20 states.