Columbia International Affairs Online: Policy Briefs

CIAO DATE: 04/2010

Comparing EU and US Responses to the Financial Crisis

Karel Lannoo

January 2010

Centre for European Policy Studies

Abstract

Since 2003, the EU and the US have conducted a vibrant regulatory dialogue on financial regulation, but domestic priorities seem to have taken precedence in response to the financial crisis. This ECMI Policy Brief compares the institutional and regulatory changes occurring on both sides of the Atlantic. On the institutional side, it compares macro- and micro-prudential reforms. On the regulatory side, it compares four key areas: bank capital requirements, reform of the OTC derivative markets, and the regulation of credit ratings agencies and hedge funds. It concludes with some implications for the regulatory dialogue.