U.K.’s Prudential Regulator Asks U.S. to Consult on Penalties It Imposes on British Institutions

By Irene Madongo

U.S. authorities should consult British regulators on the financial penalties they plan to impose on banks in the United Kingdom, Prudential Regulation Authority head Andrew Baily said Tuesday. Warning of the impact fines pose to the soundness of the industry under his supervision, Bailey stressed the need for greater dialogue between regulators. Addressing delegates at the British Bankers Association's conference on financial crime and sanctions, he said there's been an escalation of penalties for legal and regulatory failures by financial institutions, particularly from U.S. regulators and law enforcement. The fines are large enough to have negative effects on the "safety...