BRUSSELS, Dec 4 (Reuters) – O’Donnell +32 475 69 15 89
European Union finance ministers will try to finalise plans
to put the European Central Bank in charge of supervising all
euro zone banks on Tuesday, but divisions over how ECB oversight
will work threaten to undermine one of Europe’s boldest reforms.
While leaders are agreed that creating a banking union is a
sound idea, they cannot agree on how best to structure it, how
far to go in unifying banking systems to share risk and how to
prevent discrimination between euro- and non-euro countries.
BRUSSELS (Reuters) – The EU is struggling to agree plans for the European Central Bank to police lenders from next year, according to a document seen by Reuters on Wednesday that flagged British demands for what many see as a veto over the scheme.
A report, written by EU officials to outline progress after weeks attempting to settle differences between countries, laid bare disagreements that could yet derail this reform designed to underpin lenders.
BRUSSELS/FRANKFURT (Reuters) – The European Central Bank has proposed that the EU’s powerful antitrust chief be given a permanent role for shutting down weak banks that survive largely on central bank funding, officials familiar with the issue say.
In the absence of a pan-European scheme for winding up struggling lenders, the task of cleaning up the sector has fallen by default to Joaquin Almunia, the European commissioner for competition issues, who ordered a restructuring of Spanish banks on Wednesday and wants similar moves in Greece.
BRUSSELS (Reuters) – European Union countries and the bloc’s parliament agreed on Tuesday to introduce limited controls on credit ratings agencies after their judgment was called into question in the debt crisis.
Michel Barnier, the European commissioner in charge of regulation who helped broker a deal on the new law, said it aimed to reduce the over-reliance on ratings and establish a civil liability regime.
HONG KONG/BRUSSELS, Nov 27 (Reuters) – Asian financial
leaders warned Europe on Tuesday to limit any delay in stricter
banking rules to months not years amid fears the United States’
decision to shelve the controversial new global regime could
derail it completely.
Europe is preparing to follow the United States in
postponing the introduction of the Basel III reforms, EU sources
told Reuters, and the delay could last six months or even longer
if diplomats and lawmakers fail to break the deadlock.
BRUSSELS, Nov 27 (Reuters) – Europe is preparing to follow
the United States in delaying the introduction of stricter rules
on bank capital, while it lobbies for a rethink of the U.S.
stance, EU sources said.
The delay could push back the start of global rules in
Europe, known as Basel III, by about six months, and that could
be even longer if diplomats and lawmakers fail to break a
deadlock on a law meant to be phased in from the start of 2013.
BRUSSELS, Nov 23 (Reuters) – Luxembourg’s Yves Mersch won a
top post at the European Central Bank on Friday after months of
dispute with lawmakers at the European Parliament who objected
to his appointment because of a lack of women in the bank’s
The decision by European leaders to press ahead with Mersch
could strain their relations with the European Parliament,
potentially hampering agreement on reforms needed to resolve the
bloc’s debt and banking crises and in which lawmakers have a
BRUSSELS, Nov 20 (Reuters) – A tentative plan to further
restructure Greek bonds owned by private investors risks
undermining the euro zone’s credibility, a senior bank industry
representative said on Tuesday.
The Institute of International Finance (IIF), which helped
coordinate a large writedown of Greek bonds owned by banks and
pension funds earlier this year, said any further effort to have
the private sector carry the can would be taken badly and could
wreck Athens’ chances of raising money from the markets in the
BRUSSELS/WASHINGTON (Reuters) – The shadow banking system – blamed for aggravating the financial crisis – grew to a new high of $67 trillion globally last year, a top regulatory group said, calling for tighter control of the sector.
A report by the Financial Stability Board (FSB) on Sunday appeared to confirm fears among policymakers that the so-called shadow banking system of non-bank intermediaries continues to harbour risks to the financial system.
BRUSSELS, Nov 19 (Reuters) – European Union countries will
consider bending to German and British demands to soften the
power of the ECB in supervising banks to get agreement on
banking union, according to a document obtained by Reuters.
After three years of piecemeal crisis-fighting, European
countries are attempting to agree on a banking union to lay a
cornerstone of wider economic integration and protect the euro.