Mandelson told The Telegraph on Saturday that the US has shown a “surprising” lack of global perspective.
He said: “[There has been] a surprising lack of internationalism displayed by the US administration [on global banking regulation]. But also and equally importantly a failure in the European Union to show stronger leadership.
“I think that both the European Council and the European Commission have to play a much stronger leadership role. Heads of government need to set the direction and pace and the Commission needs to be a much more active, implementing body than we’ve seen in recent months.”
Mandelson said governments must develop an international system of regulation to avoid regulatory arbitrage in competing banking jurisdictions.
He said: “Above all governments need to speak in an internationally joined up way, this is an international banking system we are trying to regulate and if we have different moves made by various governments you are opening up the risk of regulatory arbitrage of competing banking jurisdictions, rather than encouraging competition within financial markets as a whole.”