EU Financial Regulation
(506 reads)
EU Financial Regulation
Thu, 12/02/2009 - 16:55
The suggestion from Hungary is most important. The lack of an integrated or at the very least coordinated financial regulatory system left the banking system foundering when the bubble popped.
The ECOFI conferences have covered this subject in debth. See the result of the ECOFI conference held recently in Nice.
The design of a regulatory control system capable of dealing with the traditional assets as well as the socalled derivatives and securitised products is a special challenge for governments and the EU. The old system wont do. Economists and bankers have failed us. the USA is worse because the free market liberals have already started to campaign against more regulation. Greenspan did not help.
I will be making a more detailed proposal on this subject. For the present I am indicating my support for a pan EU regulatory policy.
- Login to post comments
As I explained in an earlier comment, financial regulation is a key issue in responding to the current economic crisis.
A high-level group, led by a former Head of the IMF, has produced a report on EU-wide financial regulation. It seems to stop short of calling for a single EU regulator, apparently because this would be resisted by Member States, or to be more exact, by the existing regulators and financial systems in the Member States. If those systems are not capable of regulating effectively within their own countries, they will have to be replaced by an EU-wide system. There could be a delegation of powers to national regulators to manage local institutions, comparable to the existing system of EU and national regulators for competition policy.
It is a very complex area but citizens need to think about the basic principles and our political leaders need to devise a scheme which will take control away from those who have failed to protect consumers, savers and the economy in general.
http://uk.biz.yahoo.com/25022009/323/factbox-de-larosiere-report-eu-fina...