The US has caused two great crashes in 70 years, and clearly cannot be trusted to regulate financial markets. It’s not Europe which wants control of its internal financial industry; the non-US Rest of the World will impose control on the global financial industry including the inept US regulatory system.
An second issue, not yet asked is: If Banking is essential, and must be supported by Government & Taxpayers, why is it private? Why is it not an essential Government function?
Either, the risk in Banking is to be taken by taxpayers, and the taxpayers should get the rewards, or, taxpayers would not have to take the risk.
In the US, these issues are heresy, as the question go against the “free market” (LAMO at the to-date $2 – $3 trillion taxpayer support for free markets), dogma in the US.
Ask yourself the question: Do you trust the US Government to regulate Wall St, when Wall St can buy any set of laws it wants?
Which pulls a thread and starts to unravel really difficult questions about the US Governmental system – is it hopelessly corrupt? Can it be reformed from within? Or, must it crash and be remade?
As Kipling wrote:
The United States has an unlimited and meticulous legality; but of law abidingness, not a trace.
Time for the US to become "a nation of law abidingness"? Where are the leaders?