EU plots transatlantic bank regulator

The European Union is to push for an agreement on banking and financial services as a key part of this week’s historic trade talks with the US which could see the introduction of an American-European super-regulator.

Sources indicated that the agreement is seen as the major priority for the UK, given the role of the City in the international economy.

Denis_Cooper: "Other areas of focus for the UK include the removal of certain barriers to allow more trade into the US. Officials suggest British firms could save around £1bn a year if the talks are successful." "“I cannot overemphasise its importance,” Danny Lopez, the British consul general in New York, told The Sunday Telegraph." On its own numbers as quoted in the media, not just that paltry £1 billion a year, the UK government is greatly overemphasising the importance of the planned EU-US trade deal. For some perspective, UK GDP is around £1500 billion a year.

alcrook: All from the EU which cannot audit its accounts properly - It is madness to even consider it !

mistermurry: Will it be as toothless and accommodating to the corrupt as the useless so called regulators we are currently saddled with?

thisaintalbion: The global banksters slowly unravel their malign web of a New World Order.

albie: The Yanks won't agree.

expatdavid: Anything the EU does is to be resisted, no matter what their excuse is.

Ben265: "Meanwhile,  the EU continues to wrestle with its post-crisis rules, with a bonus cap for bankers being fought by many parts of the industry." As if US regulations are completed with no further discussions. So what was conclusion on the talks about replacing credit rating agencies and capital requirements? The bonus cap is an idiotic idea but the telegraph has never mentioned it breaks EU law (according to the legal advice of at least one bank). I think the telegraph are awful at reporting banking stories.

skicarver: legitimate government derives from the consent of the governed.  how can we consent or have oversight of this supra-national body? This is another nail in the coffin of democracy as 'the powers that be' have decided that the business of government is too important for the untermenschen to be involved.

Lily Alldub: Very true. But also what is missing from this article, is that EU regualtors are looking to destroy free market capitalism and the City of London. So by involving the US in their scheme to bring Socialist policy to the fore, there will be nowhere left for Capitalism.

ashestoashes: The Americans will never, in the medium to long term, tolerate such a regulator. Most of the US establishment is opposed to foreign entanglements (crazy wars excepted), which is why there is no UN parliamentary assembly, no North American Union, etc. The TAFTA is purely about harmonising trade regulations and standards to facilitate 'free' trade. Setting up a transatlantic bank regulator is on a whole different level. It does make you wonder though - now that the federal EU is nearly complete, are they looking at the next hurdle? A political union between the EU and US - starting with trade, moving onto finance and regulatory harmonisation, and so on and so on. Is that's what really on their minds?

skicarver: Agreed.  The EU will not be happy until the world is enslaved under their control and we all live our lives and think as they command. Dissenters will be executed, as in all communist dictatorships.

Christopher-trier:  Dissenters were not executed as quickly as you insist in Communist states. Rather, they were prevented access to jobs and government services. They were alive, but they were incapacitated. Their children could not go to universities, they could not earn wages, they could not seek medical care. It's a de-legitimisation that is worse than death.

skicarver: Chris, while what you say did actually happen, over 100,000,000 people were murdered during the last century by the communist regimes they were subject to. tens of millions under stalin, tens of millions under mao (of whom barroso is a devotee) and millions more in other areas of the world.    Humans have not suddenly become 'better' than they were last century.  The 'sacrifie' (industrialised murder) of citizens 'to serve the greater good' happened last century and we can see the precursor of it happening again in the misery meted out on the PIGS nations in the name of saving part of the grand design, the Euro. "There is no present or future, only history repeating itself over and over."  There are dark days ahead if we cannot restore democracy and bring these criminals to justice.

Christopher-trier:  Please don't call me "Chris", I tacked the extra 6 letters onto my name for a reason. I agree with you. My intent was not to ignore or whitewash anything the Communists did, simply to correct a mistaken account of their tactics. The Communists were much more subtle in their brutality so many, many more people died over a longer period of time. The right wing dictatorships of the 20th century were like Ebola. They rose, caused massive damage in short periods of time, but were so flagrant that they collapsed more quickly. The Communists were like tuberculosis. They rose, infected many, many millions more, and killed them with fewer instances that attracted mass attention.

observerBG: American-European Super-Regulator would be too small. I'm not impressed. Why not a World Regulator and to hell with sovereignty?

Ben265: International convergence will probably happen in the future to avoid regulatory arbitrage. Proposals such as Basel 3 are being adapted in some form across the world.  The people complaining about sovereignty are out of touch with the modern world.

jmklampwick: The road to hell and oppression. 

rosen9: Transnational super-regulator…? Would that be an International Banking Bullshitter by any chance?  

derekemery: "EU plots transatlantic bank regulator" Good luck on that as it would be a case of the tail wagging the dog.  The US economy is far bigger than the EU economy. You will never sell the idea to Americans of being ruled by Europe in any way as US history is against this. The US was created by breaking away from UK rule with its taxation and regulations. It will be seen as a return to rule by Europeans in yet a new form. The US is the home of naked  capitalism where the rich and powerful are easily  rich enough and powerful enough to ensure their interests come high on any political agenda. They massively fund both parties.  It's hardly likely that any transatlantic regulator will fit with their priorities. Wall street will be against it as it will place the US at disadvantage to the rest of the world including booming Asia. It's reckoned that by around 2016 Hong Kong will be the biggest financial centre in the world so New York as a financial centre must be already under downwards pressure see…Meanwhile, the city of London lost its crown also due to “short-sighted over-regulation, penal taxation and banker bashing” as well as the “inevitable” economic shift to the east, it said. New York has declined by less than London because of the greater strength of the US economy over the European economy, the London-based research centre said… Why would the US go for more regulation which can only reduce their competitiveness?

cping500: Actually The EU and the USA just about equal in  GNP with China coming up behind pretty fast. The US is probably more regulated than the EU. How US regulations (called often called rules)  are made  at the federal level is explained here. Notice they are not drawn up  by Congress or the President. The latter 'approves' them.

Christopher-trier:  Officially China is coming up fast, but in reality it's probably already bigger. The black market in China is, according to many familiar with the country, bigger than the official economy.

catherine_carr: OH like this is ever going to happen… They cant agree on a regulator for the EZ how on earth are they going to persuade the Americans to get involved when they already think the Europeans are slackers in this respect… The EU has delusions of grandeur way past its competence and ability… Grow up boys and get your own house in order before you try to start dictating to others…  and also stop the lying you stress tested the EZ banks and lied about the outcomes TWICE…

paceman22: Your desperation's showing.

catherine_carr: Go on then explain… If you can