Report urges EU finance watchdog
The City of London and other financial institutions should be supervised
by a new pan-European watchdog, a European Commission report will
recommend.
Its proposals, written by ex-Bank of France Governor Jacques de
Larosiere, will include an EU-wide supervisory scheme for banks and
financial bodies.
Supporters say the banking system is too big and crosses too many
borders for national supervision to function.
But the UK government will wait to see the details before responding.
Tighter regulation
The independent group was set up by European Commission President Jose
Manuel Barroso in November to look at ways of improving supervision of
the financial sector.
It followed criticism that Europe's response to the credit crunch and
the crisis in the financial sector was too nation-based and needed more
EU involvement, possibly via the European Central Bank.
The report will run to around 30 recommendations, but it is the call for
the pan-European watchdog which will attract the most attention.
Its aim would be to give an early warning of the kind of mistakes that
led to the financial crisis.
BBC Europe Editor Mark Mardell said supporters of the scheme would like
to see national bodies like the UK's Financial Services Authority made
subordinate to the new institution.
He added that Prime Minister Gordon Brown has relaxed his previous
opposition to tighter regulation at a European level, but the government
will wait to see the level of supervision recommended before giving its
response.
Story from BBC NEWS:
http://news.
Published: 2009/02/25 03:57:01 GMT
Wednesday, 25 February 2009
Posts
