US leverage guidelines' impact in Europe

Author: Gemma Varriale | Published: 9 Oct 2014

The US Federal Reserve (Fed) and Office of the Comptroller of the Currency (OCC) guidelines on limiting leverage have sparked debate about the extent to which they will impact Europe.

The US regulators issued the guidelines last year to prohibit banks making risky loans, such as those more than six times a company’s annual earnings.

"The market has proven over the years to overshoot in either an overly bullish or an overly...