European Panel Wants Trading Split From Bank Deposits

Law360, New York (October 2, 2012, 6:50 PM EDT) -- A European Commission-sponsored panel of financial experts on Tuesday said that regulators should separate risky investment banking activities from core deposit taking and lending operations at the continent's banks as a way to protect both the banking system and depositors' accounts.

Although European regulators have been working on increased capital standards and bringing in more rules and standards for trading in over-the-counter derivatives, those changes will not protect deposits at banks that also engage in sophisticated trading, a question that has taken on great importance since...
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