Financial Regulatory Forum

from Global News Journal:

Brussels’ MEPs ready to duke it out with bankers

Every new year brings resolutions, and the European Parliament is no exception.

Often derided as a multi-lingual talking shop, the institution is feeling newly invigorated by some fresh faces and by the European Union's Lisbon reform treaty, which came into force late last year and gives the 736-member parliament more say in drafting laws and acting as a check on legislation.

Almost immediately, parliamentarians were letting their voice be heard, forcing Bulgaria to withdraw its nominee for the European Commission last month because she wasn't seen to be up to the job. They also look ready to block an agreement between the EU and the United States on sharing data on bank transfers, and are really beginning to show their teeth when it comes to financial sector reform.

It's one aspect of the latter move -- reported exclusively by Reuters on Monday -- which is set to cast MEPs in the role of banker-bashers-in-chief and could put them on a collision course with national governments.

 Some senior MEPs are threatening to spoil a plan to set up new EU banking watchdogs because they believe the watchdogs' power has been watered down even before they've been set up by a deal struck among some finance ministers.

The watchdogs are supposed to keep tabs on the banking sector and the risks bankers take. But last December British chancellor Alistair Darling, worried about losing influence over the regulation of London, Europe's largest and richest financial centre, agreed a veto with other some other finance ministers.

Obama bank plan surprises Europe, muddies global coordination

By Huw Jones

LONDON, Jan 22 (Reuters) – U.S. President Barack Obama’s plans to rein in banks puts Europe on the back foot and creates confusion over global efforts to coordinate financial regulation, lawyer and regulatory officials said on Friday.

Obama proposed on Thursday to curb banks’ size and risk-taking, sending shares in major institutions down.

Senior officials and lawmakers involved in regulatory policymaking at a global and European level said they had been kept in the dark about the plans.

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