The Globe and Mail reports in its Friday, June 26, edition that the Bank of Canada, frustrated by unilateral United States moves which regulate Canadian banks with U.S. subsidiaries, called on Thursday for the possible adoption of a bilateral agreement to clarify responsibilities in winding up failed banks. A Reuters dispatch to The Globe reports that Deputy Governor Lawrence Schembri took aim at the U.S. financial reforms under the Dodd-Frank Act of 2010, which required U.S. subsidiaries of big international banks to meet separate capital and liquidity requirements inside the U.S., in order to deal with possible bank failures. Mr. Schembri says, "If a Canadian bank with U.S. subsidiaries were to fail, it bears asking whether the preemptive actions of U.S. authorities would create obstacles for the orderly resolution of the consolidated bank by Canadian authorities." He says Dodd-Frank might constrain the BOC's ability to allocate capital and liquidity in the North American market. Mr. Schembri says, "Canada and the United States should consider the option of a bilateral agreement on the resolution of banks with cross-border operations in order to clarify responsibilities and enhance cooperation."