EU agrees terms of banking crackdown

A European-wide Systemic Risk Board and three separate agencies will be set up to monitor securities, banks and insurance companies, but Britain has been assured the deal will not weaken its sovereignty.

The European Commission, the European Parliament and the EU member states last night reached a political a deal to create the new supervisory bodies. Officials involved in the deal say the super-structure will have the resources to identify financial risks, the tools to better control financial players and the means to act fast in a co-ordinated way. The agreement brings an end to fights between member states, particularly Britain, who feared a loss of sovereignty over financial regulation, and a European Parliament concerned about weak agencies ability to correct dangers ahead. A ...