DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Is the EU trying to ruin London's role as the No. 2 financial center?

**Taunteefrurge** · 12-02-2009, 07:33 PM

http://www.bloomberg.com/apps/news?p...2VFpBGpY&pos=2

EU Finance Chiefs Overcome U.K.-France Bank Clash (Update1)
Share Business ExchangeTwitterFacebook| Email | Print | A A A By Mark Deen and Emma Ross-Thomas

Dec. 2 (Bloomberg) -- European Union finance ministers overcame a clash between the U.K. and France to reach an agreement on overhauling financial supervision for the bloc.

“We’ve found a compromise. We’re in the process of creating a real European authority,” French Finance Minister Christine Lagarde told reporters in Brussels today. “It was a laborious process; not everyone was on same wavelength.”

The EU is aiming to revamp banking supervision a year after the bankruptcy of Lehman Brothers Holdings Inc. exacerbated a financial crisis that forced European governments to spend, lend or guarantee more than $5 trillion to support banks. An economic-risk watchdog led by central bankers, as well as new EU agencies to oversee banks, insurers and investment firms are intended to prevent a repeat of the worst global crisis since the Great Depression.

Finance ministers had sparred over how much power the European supervisors should wield over national authorities. The clash in Brussels came amid U.K. concern that the appointment last week of Michel Barnier, an ally of French President Nicolas Sarkozy, as EU commissioner for internal markets will see London face a tougher regulatory environment during his five-year term.
Big Losers

“It’s the first time in 50 years that France has had this role,” Sarkozy said in an interview with Le Monde published on Nov. 28. “The English are the big losers in this business.”
Ahead of the meeting today, U.K. Chancellor Alistair Darling wrote in the London-based Times calling for less power for the Europe-wide watchdogs and said that success of businesses in London was in the interests of Europe.

“London, whether others like it or not, is New York’s only rival as a truly global financial center,” Darling wrote. “No other center in Europe offers the same range of services. It is in all of Europe’s interests that they prosper alongside their close European partners.” London has already been eclipsed by New York and Singapore as a global financial center, according to a Bloomberg Global Poll in October. Deal

Under the deal, countries can overturn European supervisors’ decisions by garnering a simple majority among the 27 EU members, Lagarde said.

France had wanted members to need a qualified majority to overturn a decision, while the U.K. tried to restrict the supervisors’ control, calling for the burden to be on them to seek a majority before forcing a country to use public funds for a bail out.

In non-emergency situations, voting will be based on members present rather than all member states.

“It seems like a loss for the U.K. but there’s still a big debate to be had about the consequences of calling an emergency,” Simon Gleeson, financial regulatory specialist at Clifford Chance LLP in London, said in a telephone interview today. “To the extent this means something, I think it is a loss for the U.K.” The new regulatory system, including a European Systemic Risk Board of central bankers and national regulators, would ensure EU market laws are implemented the same in every country and strengthen supervision across the 27-nation bloc.

The board is designed to issue warnings and recommendations, flagging problems such as the build-up of investments in U.S. subprime mortgages. Three new European Supervisory Authorities would oversee banking, securities and insurance and pensions, according to the commission’s proposal.

“It wasn’t easy merging the goals of an effective European supervision structure, keeping national authorities capable, better managing cross-border conflicts where they exist and respecting the rights of national parliaments,” German Finance Minister Wolfgang Schaeuble said.

To contact the reporters on this story: Emma Ross-Thomas in Brussels at erossthomas@bloomberg.net; Mark Deen in Brussels at mdeen@bloomberg.net.

Last Updated: December 2, 2009 10:44 EST

12-02-2009, 07:33 PM	#5
Taunteefrurge Join Date Oct 2005 Posts 408 Senior Member	http://www.bloomberg.com/apps/news?p...2VFpBGpY&pos=2 EU Finance Chiefs Overcome U.K.-France Bank Clash (Update1) Share Business ExchangeTwitterFacebook\| Email \| Print \| A A A By Mark Deen and Emma Ross-Thomas Dec. 2 (Bloomberg) -- European Union finance ministers overcame *a clash between the U.K. and France* to reach an agreement on overhauling financial supervision for the bloc. “We’ve found a compromise. We’re in the process of creating a real European authority,” French Finance Minister Christine Lagarde told reporters in Brussels today. “It was a laborious process; not everyone was on same wavelength.” The EU is aiming to revamp banking supervision a year after the bankruptcy of Lehman Brothers Holdings Inc. exacerbated a financial crisis that forced European governments to spend, lend or guarantee more than $5 trillion to support banks. An economic-risk watchdog led by central bankers, as well as new EU agencies to oversee banks, insurers and investment firms are intended to prevent a repeat of the worst global crisis since the Great Depression. Finance ministers had sparred over how much power the European supervisors should wield over national authorities. The clash in Brussels came amid U.K. concern that the appointment last week of Michel Barnier, an ally of French President Nicolas Sarkozy, as EU commissioner for internal markets will see London face a tougher regulatory environment during his five-year term. Big Losers “It’s the first time in 50 years that France has had this role,” *Sarkozy said in an interview with Le Monde published on Nov. 28. “The English are the big losers in this business.”* Ahead of the meeting today, U.K. Chancellor Alistair Darling wrote in the London-based Times calling for less power for the Europe-wide watchdogs and said that success of businesses in London was in the interests of Europe. “London, whether others like it or not, is New York’s only rival as a truly global financial center,” Darling wrote. “No other center in Europe offers the same range of services. It is in all of Europe’s interests that they prosper alongside their close European partners.” *London has already been eclipsed by New York and Singapore as a global financial center, according to a Bloomberg Global Poll in October.* Deal Under the deal, countries can overturn European supervisors’ decisions by garnering a simple majority among the 27 EU members, Lagarde said. France had wanted members to need a qualified majority to overturn a decision, while the U.K. tried to restrict the supervisors’ control, calling for the burden to be on them to seek a majority before forcing a country to use public funds for a bail out. In non-emergency situations, voting will be based on members present rather than all member states. “It seems like a loss for the U.K. but there’s still a big debate to be had about the consequences of calling an emergency,” Simon Gleeson, financial regulatory specialist at Clifford Chance LLP in London, said in a telephone interview today. “To the extent this means something, I think it is a loss for the U.K.” The new regulatory system, including a European Systemic Risk Board of central bankers and national regulators, would ensure EU market laws are implemented the same in every country and strengthen supervision across the 27-nation bloc. The board is designed to issue warnings and recommendations, flagging problems such as the build-up of investments in U.S. subprime mortgages. Three new European Supervisory Authorities would oversee banking, securities and insurance and pensions, according to the commission’s proposal. “It wasn’t easy merging the goals of an effective European supervision structure, keeping national authorities capable, better managing cross-border conflicts where they exist and respecting the rights of national parliaments,” German Finance Minister Wolfgang Schaeuble said. To contact the reporters on this story: Emma Ross-Thomas in Brussels at erossthomas@bloomberg.net; Mark Deen in Brussels at mdeen@bloomberg.net. Last Updated: December 2, 2009 10:44 EST
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