Obama's bank reforms won't work in Europe: Barnier

(BRUSSELS) - Banking reforms proposed by US President Barack Obama cannot be "transposed" directly into a European context, the EU's financial services chief said on Tuesday.

"You can't just copy or transpose the Obama reforms to Europe," said French internal market commissioner Michel Barnier, whose appointment was initially greeted with mistrust in Britain.

He was speaking after attending his first meeting of the European Union's 27 finance ministers since taking up the key role but said he would be visiting Washington and New York in the coming days to find out more.

"What's important is that there is the same desire and determination on both sides of the Atlantic to implement the G20's conclusions" on post-economic crisis banking sector reform, Barnier added.

Obama's plan, announced to a fanfare but amid criticism of "populism" by the head of Swiss-based Barclays Capital last month, would limit the size and scope of financial institutions.

It would also prohibit banks that engage in commercial activities, such as holding customer savings and deposits, from proprietary trading -- making investments on their own behalf.

Barnier said there were "more problems" relating to the web of banking interests across Europe, than questions of actual size.

The subject will be debated informally by EU finance ministers when they meet in Madrid in mid-April.

Britain's Chancellor Alistair Darling, whom Barnier will visit in the City of London next month, said a "constructive discussion" was also had on proposals lodged by Sweden for "a levy on systemically important financial institutions," also due to feature on the Madrid agenda.