US regulators are demanding the right to probe books, records and emails at the headquarters of Europe’s biggest financial groups, prompting deep EU unease over Washington’s intruding on its patch to collect highly sensitive data.
The behind-the-scenes dispute over investigative powers to police complex markets has taken on new significance in the wake of US spying revelations, which have amplified European fears about US over-reach.
The US access demands set a test of political will over coming months as the transatlantic authorities mark out regulatory turf in enforcing the slew of post-2008 crisis rules designed to reduce international financial risks to domestic taxpayers.