EU super-regulator plans rushed, warns Treasury Committee
The Commons Treasury Committee will today demand Chancellor Alistair Darling stop "overambitious" plans to strengthen pan-European regulation of the financial sector, the FT reports.
It says it has identified "serious problems" with the plans to create a European Systemic Risk Board and three pan-European agencies to regulate banks, insurers and securities firms.
John McFall, committee chairman, said: "We remain convinced of the need for more effective financial regulation and supervision; we simply believe it's much more important to get it right than rush it through."
Concerns
A concern is that the need to bail out a bank should not affect the fiscal sovereignty of a member state.
The MPs say the proposals drafted "do not appear to give due weight" to that concern.
The Treasury committee is also worried about whether and how the European initiatives will fit in with global regulatory reform efforts being considered by the Group of 20 nations and the Financial Stability Board.
