👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

EU aims for bank levy deal by year end

Published 09/28/2010, 04:25 AM
Updated 09/28/2010, 04:28 AM
GC
-

BRUSSELS, Sept 28 (Reuters) - European Union governments will aim to reach a deal on a bank tax by the end of the year and also look at whether to introduce financial penalties for credit rating agencies, the bloc's presidency said on Tuesday.

Didier Reynders, finance minister for Belgium, which holds the EU presidency, said the EU was still working on measures to ensure that banks and not taxpayers pay for bailouts in future.

The bloc's executive European Commission is studying a levy on banks.

"We will try to reach an agreement on that by the end of the year," Reynders told a Eurofi symposium on EU regulation.

The bloc is also studying a more controversial tax on financial transactions but Reynders signalled that consensus on that was much further away.

Reynders also said the new European Securities and Markets Authority, which will be launched next January, should have powers to impose financial penalties on credit rating agencies.

The sector was tarnished in the financial crisis by giving high ratings to securitised products which quickly became untradable and plunged in value.

The United States has already approved a sweeping reform of Wall Street and the EU is behind in some areas as it seeks to end a logjam over new rules for hedge funds.

European Commission President Jose Manuel Barroso said approval this month of a new supervisory framework was a "huge achievement" and sets the "gold standard".

"The results prove we are up to the job," Barroso said.

The EU executive was committed to putting forward all remaining financial reforms by early 2011, he added.

He said the EU had a duty to act responsibly to make sure such reforms do not choke recovery.

Barroso said banks needed to show that the "culture of excessive bonuses" was over and that responsible lending measures for the sector should be a priority in coming months. (Reporting by Huw Jones and John O'Donnell, editing by Mike Peacock)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.