One of my fellow countrymen, Member of the European Parliament, stated during the recent debate in this institution, less than 2 weeks ago, that the debate about the enabling clause seemed to result from the fact that larger countries suffer from a Gulliver syndrome: they fear to be bound and tied up by the Lilliputians who outnumber them and, by definition, act in an irresponsible manner.
The EU’s national supervisors will be responsible for making equivalency determinations on a groupby-group basis, in accordance with guidance issued by the European Commission. In the absence of an equivalence determination, U.S. financial firms with EU operations could be subject to higher capital and risk control requirements or be required to create an EU sub-holding company.