“Separated banks law,” proposals for which are in the works in Brussels.
Spiegel.de wrote that financial industry lobbyists can no longer induce many significant changes to the E.U.’s banking union but they’ve been trying so hard to affect the bank separation law now under discussion that interior commissioner Michel Barnier has ordered E.U. officials to stop meeting with bank lobbyists. That phase of the process is now officially over, he said, and the industry was abusing the system.
“In view of our workload and the sensitivity of our current dossier, until instructed otherwise Market D.G. employees should not meet with bankers, their representatives or their associations.” “Thank you for conscientiously following this order from our commissioner.” –From Spiegel.de-viewed excerpts of an email sent by Mr. Barnier’s general director Jonathan Faull to his employees in early December 2013.
Mr. Barnier’s spokesperson told the magazine he wants to implement the new bank structure reforms currently being drafted before the E.U. parliamentary election in May 2014.
Spiegel.de said the new rules would be based on the 2012 report of group of experts under Finnish central bank chief Erkki Liikanen that found banks “ought to separate their own securities trading, derivatives trading, loans to hedge funds and loans to private equity companies from the rest of their ‘customer business.'”
Trennbanken and Universalbanken [separated banks and universal banks] are two German ways to differentiate between “consumer banks” and post-deregulation’s sprawling “investment banks” or “speculating banks.”
It would be nice if the discussion introduced a new word for the investment banks’ term “Chinese walls” to describe their in-house arrangements for artificially blocking information flows that could generate in-house profits. “Chinese walls” seems insulting to China.
(TR-R-R-ENN bonk en geh ZETTS.)