International financial companies located in countries in which to hide from the tough U.S. regulations, it is necessary to deny access to U.S. financial markets, said Chairman of the Committee on Financial Services House of Representatives of Congress Barney Frank, wrote the newspaper Financial Times.

According to him, the decision of U.S. authorities to tighten regulation of banks and brokers may put the U.S. at a disadvantage compared with competitors who will not take such measures.

In this regard, B. Frank proposes to ban U.S. banks from doing business with countries where there are no such stringent regulation of the same standards as in the United States concerning, among other things, limits on the amount of borrowing and capital requirements, as well as the requirements transparency and so on.

Given our rules, we say every country that wants to maintain the separateness that she is denied the right to participate in the American financial system - B. Frank said in an interview with FT. - We will give guidance to the Securities and Exchange Commission (SEC ), Ministry of Finance and Federal Reserve System (FRS) to deny access to finsisteme United States to any country that is a refuge from our management.

According to Frank, he reflects on the program, which would work like the sanctions imposed by the U.S. administration on Iranian banks in 2006 in an effort to keep the country from developing nuclear weapons. A major Iranian banks denied direct access to the U.S. financial system.

Analysts point out that these sanctions have made doing business more difficult for Iranian banks, although they may perform a transaction through intermediaries.

Despite the fact that Frank is the influential member of the committee, he will need the support of Congress and the administration, the ideas become law. He also could face opposition from both inside and outside the United States, says FT.

This is absolutely the wrong approach - said one of the lawmakers who asked to remain unnamed. - He assumes that everyone wants to do business in the United States, and we can establish global standards. This is absolute nonsense. American market is an alternative - for example, Hong Kong .

Harvey Pitt, former head of SEC, said that the proposals are intended to Frank to promote those countries which have strong regulatory regimes, and to provide them with benefits.

Given the difficulties of our own regulatory regime, necessarily, that the whole world must take the American standards of the best solution for all - said Pitt.

Frank

ideas are not new. In 1991, the Fed has been able to deny access to markets banks of those countries that do not have the same regulatory standards that apply to U.S. banks. U.S. regulators also may refuse to banks and brokerage firms that are not in line with international standards in the field of money laundering.

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