EU's Barnier warns U.S. of tit-for-tat action over banks

The European Union's financial services chief warned of tit-for-tat action if the United States pushes ahead with plans to impose extra capital requirements on foreign banks.

In December, Federal Reserve Board Governor Daniel Tarullo said foreign banks should be required to hold as much capital as their U.S. counterparts, regardless of how their overseas parent companies are funded. The EU fears this will fragment global capital markets and its financial services commissioner Michel Barnier said big European banks were as well capitalized as American banks.