FRANKFURT (Reuters) - German exchange operator Deutsche Boerse (DB1Gn.DE) warned on Friday the United States should be cautious in any revamp of banking regulations to ensure the lessons of the financial crisis are not forgotten.
U.S. President Donald Trump has ordered reviews of major banking rules that were put in place after the 2008 financial crisis, drawing fire from Democrats who said his order lacked substance and squarely aligned him with Wall Street bankers.
Deutsche Boerse said in a statement that “sustainable growth and the future prosperity of our society require a sound basis of financial stability”.
“The foundations of the globally balanced security architecture should therefore remain unshaken,” it added.
At a White House forum with U.S. business leaders, Trump said his administration expects “to be cutting a lot out of Dodd-Frank”, the 2010 Dodd-Frank Wall Street reform law that raised capital requirements for banks.
Deutsche Boerse, which plans to merge with the London Stock Exchange (LSE.L), said it was confident that the past reform of financial market rules in response to the global financial and economic crisis had proven successful.
“In times of global trading and financial flows, a globally consistent regulatory framework is essential,” it said in its statement. “Because the real economy needs stable financial markets, all over the world.”
A source told Reuters on Thursday that the German Finance Ministry was also concerned about Trump’s order to review banking rules.
Reporting by Maria Sheahan; editing by Susan Thomas