FATCA is not the only bank regulation that will result in foreign capital fleeing the United States.
Barbara Schechter, Canadians blast U.S. Volcker rule, writes about how the new rules violate NAFTA:
“The Volcker compliance rules will affect the accumulation of securities [as a way] to ensure the activity is deemed to be market-making and not proprietary trading,” Mr. Russell said in an interview. In this scenario, “you can’t buy them as cheaply, you can’t sell them for as much, so the spread is going to widen,” he said.
The IIAC submission argues that the compliance rules amount to “an unprecedented reach of extraterritorial regulation” because Canadian firms with U.S. operations could be required to implement the reporting and record-keeping requirements wherever they operate.
Doesn’t that sound familiar?