European Central Bank Super Regulator

European Central Bank Super Regulator.

Europe has reached an agreement to establish a super regulator to police banks across Europe.

The European Central Bank (ECB) will take control of monitoring capital adequacy, lending procedures and investment banking operations of major banks across Europe.

Sovereign State Banks will see a huge reduction in powers.

Our view
We have always felt it strange that a common currency such as the Euro was not controlled from the centre.  Different countries have different economic needs and goals.  This move will make it easier to bailout banks or countries, but it also reduced the sovereign powers of a country to run its own affairs.

This is start of a real United States of Europe, controlled by the Germans and French, a good thing for stability, a poor thing for countries wanting to control their own destiny.  That said, the debt needs to be managed and controlled and this is part of that solution.