In the end, banking customers make the choice. For now, it seems that Europe's more individualist and consumer-friendly approach to privacy regulation has gained the upper hand. The US has a long way to go to regain its reputation as a defender of privacy rights.
The story is also that of the US losing its bid to house the massive, job-producing data center of SWIFT, by which virtually all banks transfer funds across borders. This loss is due entirely to the fact that the US is no longer a credible location for data, due to warrantless searches, seizures, spying, insider deals and a host of related accusations. Integrity and transparency have suffered in the wake of the implementation of the USA Patriot Act, standards of practice and other regulations put into place since 9/11/2001.
The US also lost the bid for storage and management of the ID data held by identify.nu, the passport ID storage and delivery facility of the Consular Chamber of Commerce. This data was moved to Denmark for the privacy protection offered by the more comprehensive and transparent EU and Denmark regulation.
US Snooping Rights in Europe: Criticism Grows over Banking Data Deal - SPIEGEL ONLINE - News - International
The EU is about to enter talks with the US on giving it access to banking data in its fight against terrorism. German politicians from across the political spectrum are up in arms, and members of the European Parliament say they will try to scupper any deal that violates data privacy.