The jurisdictions represented on the Basel Committee not only have the right to regulate their financial markets – including large FBOs participating in those markets – they have a responsibility to their home jurisdictions, and to the rest of the world, to do so.
The most important contribution the United States can make to global financial stability is to ensure the stability of our own financial system. There must be some assurance beyond mere words from parent banks or home-country supervisors that a large FBO will remain strong or supported in periods of stress.