MEXICO CITY, (Reuters) - Finance officials from the Group of 20 economic powers expressed confidence that the United States could water down one of the centerpieces of its banking reforms, which critics see as a risk to debt markets and banks.
Senior G20 officials said they felt Washington was listening to their fears over the U.S. Volcker rule, which is designed to curb banks' trading for their own profit. It exempts trade in U.S. Treasuries, but not other countries' sovereign debt.
"The way it was initially formulated was a quite domestic vision, not global enough," said Bank of France governor Christian Noyer at the weekend meeting of G20 central bankers and finance ministry officials in Mexico City.
"This has been thoroughly explained to the United States... They perfectly understand the legitimacy of this reaction, which does not call into question the philosophy behind the rule."
The rule, named after former Federal Reserve Chairman Paul Volcker, aims to stop banks
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