BRUSSELS (Reuters) – Divisions in Europe over a new regime to supervise banks overshadowed fresh attempts by EU finance ministers on Tuesday to agree a centrepiece reform that some officials fear could now unravel.
So far, countries in the euro zone have attempted to contain the financial crisis with piecemeal measures. The banking union would be a cornerstone of wider economic union and the first concerted attempt to integrate the bloc’s response to problem lenders to win back confidence.
BRUSSELS, Nov 13 (Reuters) – EU finance ministers will seek
on Tuesday to break an impasse over a new regime to supervise
banks, but with much of the plan contested and time running
short to agree, the European Union risks seeing this centrepiece
So far, countries in the euro zone have attempted to contain
the financial crisis with piecemeal measures. The banking union
is the first concerted attempt to integrate the bloc’s response
to problem lenders to win back confidence.
BRUSSELS (Reuters) – The longer it takes to agree further aid for Athens, the more damage is done to the Greek economy, a senior bank industry representative has warned, flagging a growing sense of alarm about a renewed threat of default.
“The longer you take over these negotiations about paying financial aid, the longer you starve the economy of the required liquidity,” said Hung Tran, deputy managing director of the Institute of International Finance, a global bank lobby group.
BRUSSELS (Reuters) – European Union countries will consider a proposal this week for an absolute cap on the total bonus paid to bankers, EU officials said on Sunday, a reform Britain is unlikely to support.
The idea to cap total bonus payouts, including share options, at between three and five times salary, will be discussed at a meeting of EU diplomats and lawmakers on Monday alongside a suggestion to limit just the cash bonus bankers receive to the level of their salary, one of the officials said.
BRUSSELS, Nov 7 (Reuters) – A group of AAA-rated euro zone
states, led by Germany, wants limits on the ECB’s remit in a
proposed banking union, possibly undermining a scheme to restore
the currency zone’s stability.
According to a document circulated by Germany, Finland, the
Netherlands and Luxembourg, and seen by Reuters, the four core
euro zone countries advocate stronger powers for local
regulators when it comes to day-to-day oversight of banks in the
banking union scheme.
LONDON/BRUSSELS, Nov 7 (Reuters) – A group representing some
of the world’s most powerful banks has approached the European
Central Bank to seek backing for a new way to calculate the cost
of funding after the Libor rigging scandal, people familiar with
the matter said.
The approach comes as a collapse in interbank lending and
the threat of a regulatory clampdown have put in doubt the
future of such benchmarks, driving a search for different ways
to anchor the price of funding.
BRUSSELS (Reuters) – European Union countries will examine a plan this week to allow the ECB to supervise banks in states outside the euro zone alongside those within the currency area, according to an EU document that lays down limits on the central bank’s role.
Last week, EU leaders agreed to build a new system of supervision led by the European Central Bank, as a step towards a banking union where chiefly euro zone countries would jointly back problem lenders, in a move to underpin the currency.
BRUSSELS (Reuters) – EU leaders have agreed to allow the European Central Bank to supervise banks from next year, but questions remain about how the process will work, which lenders will be involved and whether those in trouble can be helped.
The European Commission has proposed making the ECB responsible for supervision as a step towards a banking union in which euro zone countries and any others that want to join would together resolve problem banks and protect savers’ deposits.
BRUSSELS (Reuters) – The European Central Bank can oversee lenders in a banking union, the EU’s top regulatory official said on Thursday, contradicting a report that said a proposed new ECB supervisory structure would be illegal.
The Financial Times reported on Wednesday that one of the European Union’s top legal advisers had written an opinion saying the new structure would be “illegal” and that changes would more than likely have to be made to the EU’s treaty.
BRUSSELS (Reuters) – European Union countries are considering creating a body inside the European Central Bank to find a legally watertight way to involve states outside the euro zone in a banking union, officials said on Wednesday.
European leaders meet on Thursday for a two-day summit where they will try to bridge divisions over a banking union that is intended to underpin the euro zone.