1 Capital requirements on megabanks within EU banking policy  3

2 Capital requirements on megabanks in the EU and US up to 2025  8

3 The US takes the low road  14

4 The EU’s high road to competitiveness: maintain capital requirements in line with Basel and end internal banking policy fragmentation  19

References  23

Appendix: The prudential policy framework and ‘capital stacks’  26

A1 Definitions and summary of EU and US arrangements  26

A2 Capital stacks in the EU and US  30