Douglas Landy, partner in Milbank, Tweed, Hadley & McCloy’s Leveraged Finance Group, provided commentary in a recent Law360 article titled, “Banks Leery of Int’l Costs for GOP Dodd-Frank Replacement.”
In connection with the practice of “gold-plating” by US regulators, which makes financial rules stronger than those that are in place in other countries, Mr. Landy explains, “because of that, if the legislation allows international banks to operate under leverage definitions set by their home countries, they could have advantages over their US competitors under Hensarling's plan.” Mr. Landy continues, "it seems unfair to let them operate here alongside US banks that have a much tighter standard. And it seems risky."
