A top EU lawmaker has added his voice to the chorus of criticism against a planned clampdown on proprietary trading at large lenders. The controversial proposal, put forward by the European Commission nearly a year ago, would empower national regulators to require large banks to separate potentially risky trading activities from their deposits business if there’s a threat to financial stability. Swedish MEP Gunnar Hokmark, who is shepherding the legislation through the European Parliament, suggests several tweaks to the proposal, setting the stage for a showdown among the EU’s three main institutions. ‘The objection lies not with the ban on proprietary trading, but that all banks, whatever risks they are carrying should be separated, and I don’t agree with that,’ he said in an interview at the European Parliament in Brussels.
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