Why do EU TTIP negotiators want to weaken bank regulations meant to protect taxpayers after the financial crisis? A new Federal Reserve rule requires Deutsche Bank, like all other too-big-to -fail banks operating in the US, to maintain minimum capital and liquidity as a backstop against taxpayer losses in the event of another financial crisis. But EU Commissioner Michel Barnier has lobbied against this rule and has reportedly pushed for a clause in the TTIP that would allow banks like Deutsche Bank to weaken its effect.
Why would European negotiators push for a process that would weaken bank solvency rules designed to protect all of us?
If Deutsche Bank fails, who can bail it out? Deutsche Bank has received BILLIONS in U.S. government support since the economic crisis began:
$11.8 billion in TARP funds as one of the largest counterparties to AIG
$2 billion as the second-heaviest user of the Fedâ€™s discount window
$354 billion from low-cost emergency funding programs. In disclosures made prior to deregistering its U.S. bank holding company on Feb. 1, 2012, Deutsche Bankâ€™s Taunus subsidiary maintained negative Tier 1 capital.
No More Bailouts for Eurobanks! DBRiskAlert.org