Some elements of Universal banking also exist, for example banks are allowed to undertake investment banking, and leasing businesses on their own balance sheet as well. While the central bank showed flexibility in allowing these developments, the underlying legal architecture was not changed in line with the market needs and developments.
In the present circumstances where deficit and debt ratios need to be decreased, the US could not offer its bonds and T-bills as the almost exclusive reserve asset of the world. In this context, Euro assets are necessary.