Eurozone reaches landmark deal to allow ECB to supervise all 6,000 banks

[-:Undertaker:-]

http://www.dailymail.co.uk/money/new...000-banks.html

Eurozone reaches landmark deal to allow ECB to supervise all 6,000 banks

Eurozone finance ministers have thrashed out a deal overnight on rules for supervising banks in the single currency bloc.

The move will see around 200 of the biggest banks in the eurozone come under the supervision of the European Central Bank (ECB), in a move designed to help protect the single currency from future financial crises.

With the new supervisory powers in place, the ECB will be able to act early on to prevent a systemically dangerous accumulation of debt on any eurozone bank's balance sheets.

In it together: The banking supervisor decision brings the eurozone one step closer to a single banking union

Struggling financial institutions will also be able to tap Europe's emergency bailout fund, the European Stability Mechanism, directly.

Officials said the ECB would regulate some 150 to 200 banks directly, mostly major cross-border systemic lenders and state aided institutions, with the power to delve into all 6,000 banks in case of problems.

The deal made in the early hours comes ahead of a summit later today, where terms will be put before European leaders to endorse.

Prime Minister David Cameron is to attend the Brussels summit, although since the UK is not in the eurozone it will not be joining the banking union. However the UK has won some protection against being marginalised when key decisions are taken.

There had been considerable debate about whether the ECB should be directly responsible for all 6,000 eurozone banks or just the biggest banks.

An agreement was reached this morning giving the ECB oversight of banks with assets greater than 30 billion euros (£24 billion).

Ah yes, so we're saved. Because the EU of course is in the league of excellence when it comes to audits, debts and spending. Remember, this is the organisation who's accounts haven't been signed off in 17+ years with billions missing in suspected fraud, this is the organisation which pushed the stupid Euro project in the first place and this is the organisation which purosely ignored it's own rules regarding entry requirements into the Euro - along with the ECB which ignores its own rules when it comes to bailing out bankrupt countries.

The can kicked down the road, again.

Thoughts?

[The Don]

Scary how they can organise and implement something this important overnight without any prior notice. Wonder how long until we wake up to a European Superstate...

[God]

Crazy stuff going on around tbe world and thats one of them