The ECB and a 'European Banking Union'

[PaddyJoe]

There's been a lot of behind the scenes discussion about a 'European Banking Union' over the last month and a half since the European summit at the end of July which agreed to set up a common supervisory regime for the european banking sector.
So how has the proposal evolved?
A Reuters report today claims that Jose Barroso will table proposals next week which recommend that the ECB take charge of direct supervision of the entire banking sector. This would include powers to "police, penalise and even close banks across the euro zone".
Germany, however, is not so keen on the idea and would prefer that the ECB monitors only the larger pan european banks while leaving the smaller banks to national regulators.
Italian newspaper, Il Sole 24 Ore, has published a draft of the proposals today, according to Reuters.

"Banking union is one of the issues that can demonstrate that the euro zone is getting its act together," said Ken Wattret, an economist at BNP Paribas.
A banking union will require countries to surrender a degree of sovereignty over their lenders, a prospect politicians in several countries are suspicious of.

http://uk.reuters.com/article/2012/0...8860QV20120907

[MPB]

There's been a lot of behind the scenes discussion about a 'European Banking Union' over the last month and a half since the European summit at the end of July which agreed to set up a common supervisory regime for the european banking sector.
So how has the proposal evolved?
A Reuters report today claims that Jose Barroso will table proposals next week which recommend that the ECB take charge of direct supervision of the entire banking sector. This would include powers to "police, penalise and even close banks across the euro zone".
Germany, however, is not so keen on the idea and would prefer that the ECB monitors only the larger pan european banks while leaving the smaller banks to national regulators.
Italian newspaper, Il Sole 24 Ore, has published a draft of the proposals today, according to Reuters.

http://uk.reuters.com/article/2012/0...8860QV20120907

Central Bankers regulating Private Investment Banks?

Jesus Christ, is there anybody with half a brain among the political classes in Europe?

They are the same bloody people for Christs sake.

[DCon]

Central Bankers regulating Private Investment Banks?

Jesus Christ, is there anybody with half a brain among the political classes in Europe?

They are the same bloody people for Christs sake.

Poachers and Gamekeepers in constant flux, regulating each other

[DCon]

UK set for a fight. Who would have seen that coming?



to read the article: https://twitter.com/SkyNews/status/2.../photo/1/large

[PaddyJoe]

Barroso is scheduled for a press conference tomorrow morning(Wednesday) to present the full details of the proposal.

[Sidewinder]

Stop the world, I wanna get off.

Too many dribbling inbred delusional lunatics, everywhere you look. We seem to be rapidly devolving as a species.

[DCon]

Barroso is scheduled for a press conference tomorrow morning(Wednesday) to present the full details of the proposal.

Barroso is waffling on at the moment

08.23 Mr Barroso sees a "social emergency" in some parts of Europe. He wants to implement a "youth guarantee scheme" which will to facilitate training. He also wants to implement measures that will fight tax fraud and evasion, which could yield billions of euros.

08.21 He says that today's speech is about presenting a "decisive deal" for Europe. He stresses that the Eu needs to support countries via innovation and investment growth.

08.19 He says the weaker countries should leave no doubts about their willingness to reform, while stronger countries must leave no doubt about the EU sense of solidarity.

"We are in this together and we must resolve this together," he says.

http://www.telegraph.co.uk/finance/d...isis-live.html

[DCon]

The Brits are feared

UK banks could be shut down or forced into bail-outs by Brussels

A panel of European officials would be given sweeping new powers to police the financial sector across the continent but also in the City of London.

They would be given "full decision making powers" to impose EU law and to arbitrate disputes between Britain and the eurozone over the risks posed by British banks, according to the proposals being tabled on Wednesday at the European Commission. Decisions taken by the powerful body would be automatically binding unless Britain was able to win the unlikely backing of a majority and overturn them.

Rulings by the panel could create huge costs for the British government and banks if they were ordered to bail out a struggling institution, contribute to cross-border bail-out funds, or allow the EU to rule over breaches of European law.

The moves stem from proposals for a eurozone "banking union". The radical new EC blueprint for banking regulation at the EU level is focused on giving the European Central Bank new powers to supervise the eurozone's banks, in order to shore up struggling financial institutions in southern European countries such as Spain.

But the ECB's new role would see the existing European Banking Authority (EBA) - the current pan-European bank regulator that has its headquarters in London - being radically overhauled and strengthened.

http://www.telegraph.co.uk/finance/n...-Brussels.html

[Greengoddess]

Barroso speech

There should be a Democratic Federation of *nation states . A union of the member states not against them. Will require a new treaty. It can be started now.
Before next election, the commission will put forward ideas for Treaty change.

[DCon]

Barroso speech

There should be a Democratic Federation of *nation states . A union of the member states not against them. Will require a new treaty. It can be started now.
Before next election, the commission will put forward ideas for Treaty change.

CNBC reporting that Barosso said that implicit consent of the people should not be required for Treaty change

[DCon]

The Telegraph have the official document



www.telegraph.co.uk/finance/debt-crisis-live/9537151/Debt-crisis-live.html

[DCon]

CNBC reporting that Barosso said that implicit consent of the people should not be required for Treaty change

he actually said the opposite. Seems to favour referenda over Government rubber stamping

He called for a clean break with how treaty changes have been pushed through in the past, saying they should win direct popular backing and not be pushed through with the "implicit consent" of citizens.

http://online.wsj.com/article/SB1000...876874484.html

[DCon]

The Brits are feared





http://www.telegraph.co.uk/finance/n...-Brussels.html

worried silly

A BBC journalist asks if today's proposals mark the begininng of the end of London's status as the financial centre of Europe.

Mr Barnier replies that he thinks and hopes that London’s place will remain pre-eminent. "It’s not just important for the UK but for Europe," he adds.

Britain's position will be even stronger if the eurozone works well, he says, adding that for David Cameron and George Osborne, the UK’s interests are for the eurozone to escape the crisis, and that it is strong and well managed.

"I think that what we are suggesting is in the interests of the City," he adds, "We have gone far to organise dialogue between the EU and eurozone countries".

more details emerging

13.30 Mr Barnier and his team did think about setting up a completely new body to supervise the banks, but decided to use the ECB's resources "to prevent more bureaucracy,"

He repeats that the ECB will be supported by national supervisors, "they will provide a network of expertise for the single supervisor," says Mr Barnier.

13.26 Mr Barnier also calls for a more stringent deposit protection scheme, with a clear "recovery and resolution framework". Creditors must also stump-up the cash when banks get into trouble, not just taxpayers, he says.

13.25 National supervisors will retain responsibility, especially with regards to the protection of consumers, says Mr Barnier.

Those not in the euro area but in the EU may decide to join, says Mr Barnier, but for those who don't, supervision in these countries will not change at all.

13.21 Mr Barnier says that there will not be a dramatic change on January 1 next year, as the ECB would not be able to monitor all banks by then. This would not be "a serious approach" to take, he says.

Mr Barnier adds that the supervisor "may go and look at certain aspects of a given bank which may pose a risk". The biggest banks will be monitored on a regular basis, he says, especially those that have received state aid.

He hopes that a supervisor for all eurozone banks will be up and running by July 2014.

13.10 Mr Barnier says the proposals aim to monitor the sources of risk for member states. "We have to put in place a better and more efficient system to cover all banks in Europe," he says. "This is very important because the banking issues raised by some become the issue of others because of the interconnectedness that can have a knock-on effect."

We're not just talking about a technical issue, it's a political issue, he says.

http://www.telegraph.co.uk/finance/d...lout-live.html

[PaddyJoe]

Predictably, the rosbifs aren't a bit happy with the proposed new European banking regime. Cameron is waving the threat of a referendum.

David Cameron has privately warned EU leaders he will call a referendum in Britain if they press ahead with plans to create a ‘federal Europe’.
Diplomatic sources in Paris yesterday said the Prime Minister has privately warned French President Francois Hollande that he will order a referendum if plans to give Brussels sweeping new powers are approved.
He is thought to have repeated the warning to other EU leaders


Read more: http://www.dailymail.co.uk/news/arti...#ixzz26Tf5SW74

All well and good, but he isn't doing Noonan and Kenny any favours. Doesn't he realise that poor old long suffering Ireland isn't going to get any relief on bank debt until this whole banking supervision thing is settled?

[PaddyJoe]

Banking supervision plans are dead in the water.

German Finance Minister Wolfgang Schaeuble said it became immediately clear during a feisty debate that the target-date for adoption of January 1, 2013, was no longer attainable.

"January 1st, that will not be possible," Schaeuble said, adding that it was "not even worth having that discussion."

Swedish Finance Minister Anders Borg had already broken away to dismiss as "completely unacceptable" the proposal unveiled by EU banking commissioner Michel Barnier.

http://www.france24.com/en/20120915-...medium=twitter