Elizabeth Fournier
Staff writer
The supervision of European banks has been heavily censured in recent months, with critics agreeing that more regulatory cooperation is needed. But many obstacles stand in the way of pan-European supervision, not least because the EU is home to as many fiscal systems, legal frameworks, deposit guarantee schemes and national supervisory arrangements as it is members.
Politicians, industry leaders and ex-regulators all have suggestions. In October French and ex-EU President Nicolas Sarkozy called for a European "economic government" to deal with financial crises. Former UK FSA executive chairman Howard Davies has suggested separate legal subsidiaries for overseas jurisdictions, a single supervisory body and enhanced colleges of supervisors. And Jean-Claude Trichet, President of the European Central Bank, said he was ready...