The European Commission intends to respond to the international financial crisis by imposing tougher rules on banks' operations. The financial sector is worried that the plans will restrict lending and make credit more expensive. Germany's financial capital Frankfurt. The banks are worried about new EU plans to tighten controls of them. The European Union is ramping up the pressure on the financial sector with plans to tighten regulations under which European banks can invest in global credit markets, the Financial Times Deutschland reported on Monday. The EU wants to only allow banks to buy so-called securitized loans -- loans repackaged as securities -- if the seller continues to hold 10 percent in his books, the newspaper reported, citing an internal European Commission draft for new bank equity capital rules. EU Internal Market Commissioner Charlie McCreevy wants to implement the rules in the autumn, the report said. EU governments and the European Parliament have yet to approve the plan.
The European Commission intends to respond to the international financial crisis by imposing tougher rules on banks' operations. The financial sector is worried that the plans will restrict lending and make credit more expensive.
Germany's financial capital Frankfurt. The banks are worried about new EU plans to tighten controls of them. The European Union is ramping up the pressure on the financial sector with plans to tighten regulations under which European banks can invest in global credit markets, the Financial Times Deutschland reported on Monday.
The EU wants to only allow banks to buy so-called securitized loans -- loans repackaged as securities -- if the seller continues to hold 10 percent in his books, the newspaper reported, citing an internal European Commission draft for new bank equity capital rules.
EU Internal Market Commissioner Charlie McCreevy wants to implement the rules in the autumn, the report said. EU governments and the European Parliament have yet to approve the plan.
The financial sector is worried that the plans will restrict lending and make credit more expensive.
And this is bad how, exactly? The financial sector is collapsing because of cheap credit. You'd think that given their inability to restrain themselves they'd be at least happy to have uniform rules applying to them... but no. Greed is overwhelming. In the long run, we're all dead. John Maynard Keynes
You'd think that given their inability to restrain themselves they'd be at least happy to have uniform rules applying to them
You'll still have business in a recession, but they live for the 'growth phase' of the wholly speculative 'business cycle'. A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
