This is at least predictable.

This is the Cato Daily Podcast for Thursday, December 19, 2013.

I'm Caleb Brown.

This much is at least predictable.

Bank regulators will not be able to predict the consequences of their regulations.

Louise Bennett is Associate Director of Financial Regulation Studies at the Cato Institute,

she argues that new proposed bank regulations in the U.S. and the UK threatened global growth. We spoke last week.

So I recently wrote a proposal or a policy analysis with Arthur Long of Gibson Dunn.

And what we looked at was two recent proposals,

one by the United States's Federal Reserve,

which looks at foreign banking organizations operating in the

United States and it's an interesting proposal because it changes

basically a hundred years of precedence.

So traditionally foreign banks have been given a lot of flexibility in how they structure

the US operations and this proposal is different because now what

it requires is that a large foreign bank organises its US subsidiary operations and that can be branches and various other

under a US holding company structure. That's relevant because what it means

is that that holding company is going to have to meet all of the

U.S.'s internal requirements.

So Basel, three requirements, capital, other requirements, leverage ratios and as well as any other requirements

leverage ratios and as well as any other requirements under Dodd-Frank that it may that may be relevant

That may mean of course of course that entity has a foreign parent that is subject to a number of capital

...