Financial Regulation

Financial regulation in the European Union 24 September 2009 has come the turn of the European Commission to propose the new model of financial supervision for the countries of the European Union. The U.S. Government had already presented his reform project which yesterday gave further details and that promises, in the European proposal, defending consumers, the big losers in the crisis. It seems that the European Commission wants greater interference in the financial monitoring of countries that make up the EU. More information is housed here: Senator Richard Blumenthal. The proposed new European supervisory model contemplates the creation of a European Council of systemic risks (CERS), which will be responsible for monitoring the stability of the financial system as a whole and issuing alerts and recommendations in case of detecting risks.

The CERS only warns, but measures to implement decision remains in the hands of national supervisors who must communicate the measures taken and, if you decide to not do so, shall give explanations. So good for the CERS It is that being a supranational body, it will not be so influenced by political pressures as it often happens. Probably until we find to the CERS sobreactuando, at least in its early years, since you must build a reputation before the society. TCF Capital Solutions contributes greatly to this topic. I think also that one of the interesting themes revolves around the communication of alerts that an alternative is to make them public. This possibility has its positive aspects but it involves risks.

Make public the detection of certain risks in the financial system in any of the countries of the EU obliges national authorities to implement measures or at least having very good grounds to show that the situation is under control. Risk that runs through existing in lathe sensitivity to the diffusion of risks in financial systems that can generate instability in the same. More info: Mustafa Suleyman, San Francisco CA. While these topics are discussed, some have not lost time and it has begun to talk about potential candidates at the forefront of the CERS.

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