New framework for European financial supervision
Financial regulation in Europe has failed to stop the contagion of financial stress from the United States to Europe. While there is now a European Central Bank that sets the monitory policy for the Euro area, no single institution is responsible for overseeing European Banks and other financial institutions. Larosiere released on 25th February 2009 a report commissioned by the EU about how to reach such an objective. Here is the link to the report available for free The proposed new structure would be: While I welcome the move towards a better European integration, I find it not bold enough because it leaves the responsibilities spread across several institutions. Why not build a single entity, that would be alongside the ECB and that would have ultimate responsibility for financial supervision?