The backlash against the Volcker Rule has officially gone global. While U.S. banks are still up in arms about how regulators propose to implement the trading ban, the protests sound just as loud from foreign institutions and even their governments, which fear the U.S. is stepping outside its jurisdiction.

"The proposed rule appears to extend well beyond U.S.-insured depository institutions and imposes significant restrictions on Canadian banking entities by limiting their use of U.S.-based resources, personnel and market infrastructure and by preventing them from trading with U.S. counterparties," Mark Carney, governor of the Bank of Canada and chairman of the Financial Stability Board, said in a letter to Federal Reserve Board Chairman Ben Bernanke.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.