tag:blogger.com,1999:blog-36227136.post5980964754156311924..comments2024-01-16T08:40:53.682+00:00Comments on <a href="http://www.openeurope.org.uk">Open Europe</a>: Banking Union Part II – now for the safeguards OEhttp://www.blogger.com/profile/00556463374230498875noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-36227136.post-53026096628992471492012-09-11T15:20:32.116+01:002012-09-11T15:20:32.116+01:00Rollo - I'm with you as the only answer to the...Rollo - I'm with you as the only answer to the tortuous bureaucratic dog's-dinner [except d's-ds look quite appetising!]<br /><br />Just a single minor example of the rubbish it is, there;'s the requirement that the EBA when on crucial votes must include 3 non-euro states. But the only snag is that the composition of the board only contains TWO non-euro states.<br /><br />I can see this becoming EU-practice (acquis communautaire) when the euro itself crashes. The big-wigs in Brussels will be quite happy as it is a step on the road to the US of E, which is their aim all along. <br /><br />christina Speightnoreply@blogger.comtag:blogger.com,1999:blog-36227136.post-10742164888737743292012-09-11T11:37:34.809+01:002012-09-11T11:37:34.809+01:00Quick! Get out before it is too late and the City ...Quick! Get out before it is too late and the City is killed off for good.Rollohttps://www.blogger.com/profile/18255460090580758354noreply@blogger.comtag:blogger.com,1999:blog-36227136.post-12908064835650950042012-09-10T20:51:28.079+01:002012-09-10T20:51:28.079+01:00As far as bankregulating is concerned the EBA is a...As far as bankregulating is concerned the EBA is a bit of a joke imho. All the major problems we face now they have missed, their stress tests eg were completely uncredible. <br /><br />2 issues need the be solved (proper regulation and a free common market for fiancial services). But regarding point 1 EBA is imho part of the problem and not part of the solution. They let eg slip a large number of Spanish banks while there were marketsignals that even a blind horse could have seen. Missing the 2007/2008 crisis was imho already a total miss, but they simply went on that way.<br />Furthermore they clearly look like the politics poodle in the stresstests. Does anybody think that getting away from regulator independence longer term also is a good issue?<br /><br />Bankregulation is a difficult thing, but CBs are much better equiped to handle that in general. Knowledge base is bigger (getting proper people at lousy civil servant wages will always be a problem in the sector). But also the CBs have by having frequent contacts on mainly other issues a much better insight. Providing of course they donot sleep in the same bed as the banks (something that happened too regularly).<br /><br />The problems are mainly at the moment the supervision of PIIGS banks and banks heavily exposed to them, while often at the same time supervision is complete rubbish. Spanish regulators clearly donot look in control of the sector. That should probably be the first point of attention.<br /><br />Supervision will hardly solve this problem (the crisis). A lot of the banks are simply bust and you can supervise all that you want but they remain bust. This is the main issue not centralised supervision/regulation.<br />Assuming that Germany de facto will back up the whole bankingsector to solve this is simply completely unrealistic. Riknoreply@blogger.com