Regulatory Experience in the U.S. And Its Lessons for the European Union

20 Pages Posted: 1 Dec 2017

See all articles by Anthony Saunders

Anthony Saunders

New York University - Leonard N. Stern School of Business

Date Written: July 28, 2014

Abstract

This paper looks at the challenges facing the Eurozone countries in establishing a banking union. Using the historical regulatory experience of the U.S. as a laboratory for comparative analysis, this article suggests that due to the diverse set of economies with competing local supervisors and diverse bankruptcy laws achieving the three “legs” of a European bank union, namely supervision, deposit insurance and restructuring/ resolution, is by no means an easy task. Even today, the U.S., despite having introduced its first national banking regulation in 1863, still falls short of what might be viewed as a full banking union, despite the existence of a common currency from at least 1913 with the foundation of the Federal Reserve. Whether the Europeans can tackle this challenge with such a diverse group of countries remains to be seen.

Suggested Citation

Saunders, Anthony, Regulatory Experience in the U.S. And Its Lessons for the European Union (July 28, 2014). Journal of Financial Perspectives, Vol. 2, No. 2, 2014, Available at SSRN: https://ssrn.com/abstract=3079452

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