Europe had no such laws, overcommitting to risk (unworthy borrowers) and hiding it in derivatives was why
The 1990s and early 2000s were a time of great innovation in financial engineering. Derivatives had been around for decades. But the ‘quants’ in financial firms hadn’t started fully exploring the world of arcane and exotic paper until recently.
The financial industry, with the cooperation of Congress, stripped off the last shackles of Glass-Steagall, because of course “it would be different this time” when investment banking and commercial banking were mixed together. And to add icing to that cake they made sure that Congress exempted OTC derivatives from any and all regulation. A home grown recipe for disaster. No European input required.