U.S. regulators are trying to expand their jurisdiction and subject foreign governments to tougher regulation when they engage in certain U.S. financial transactions, such as swaps. Government-backed foreign institutions reject the prospect, arguing that the U.S. is overstepping its bounds. "It would be inappropriate to be subject to supervisory requirements by a non-EU authority," the European Central Bank wrote to U.S. regulators. "We are concerned that external control of our activities might not be sufficiently sensitive to the practice of managing foreign reserves and could thus frustrate the ECB's performance of the mandate that it has been given."

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