EFTA01825419

To: From: Sent: Subject: Jeffrey Epstein Wed 3/31/2010 12:48:43 PM Re: Fw: Summers/CX readout the current language is after review the regulators SHALL, it needs to be MAY decide to limit... On Wed, Mar 31, 2010 at 8:43 AM, < wrote: PI protect Sent from my BlackBerry® wireless device From: ' Date: Wed, 31 Mar 2010 13:38:43 +0100 To: <petermandelsonWbtinternet corn> Subject: Summers/CX readout Summers/CX readout CX was grateful for your intelligence ahead of the meeting. Financial Services reform > o LS gave similar position on substance of Volcker as at Davos. Focus of concern is more on prop trading than size of banks or breaking them up. Dodd Bill requires the regulatory authorities to consider Volcker's proposals and bring forward options for delivering them. So more room for regulatory discretion than one might imagine. The Dodd Bill is the template for reform. US competition law already limits any one bank to having no more than 10% of retail deposits. Some discussion on whether to introduce a similar cap on the level of liabilities held by any one bank o On derivatives, US continues, like us, to think that in principle they should be traded through a clearing house but also recognise there are circumstances where direct contracts are appropriate. Drawing the dividing line is difficult. EFTA_R1_00199886 EFTA01825419 • On bank living wills, US position similar to ours o On systemic levy, US position not far apart from us. CX reminded LS that at Finance Ministers meeting in Canada there was a move away from a global insurance fund to a global levy. LS did not dispute. CX noted that because US Govt taxes American banks on worldwide basis there was a real risk of double taxation of UK banks e.g. Barclays. This an issue of design of a global levy, not of principle, but very important for the UK nonetheless o There is a hot debate going on domestically in US on whether the Fed should continue to regulate consumer finance or not - Obama has proposed setting up an FSA-style agency taking it out of the Fed (obvious UK domestic debate resonances) o LS asked CX on whether and how US should engage with European allies (mutual blaming of Fr and Ge stances). LS didn't want to make the position worse by provoking further hostility. CX said US did need to engage actively with EU and European capitals. But they should try to be more consensual, and start from a common position with European countries as far as possible. The original of this email was scanned for viruses by the Government Sccurc Intranet virus scanning service supplied by Cable&Wireless in partnership with MessageLabs. (CCTM Certificate Number 2009/09/0052.) On leaving the GSi this email was certified virus free. Communications via the GSi may be automatically logged, monitored and/or recorded for legal purposes. *********************************************************** The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this EFTA_R1_00199887 EFTA01825420 communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to jcc‘[email protected], and destroy this communication and all copies thereof, including all attachments. EFTA_R1_00199888 EFTA01825421