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14 October 2008

ECON Draft Motion for a Resolution on the situation of the global financial system


The draft provides a catalogue of actions including an appropriate crises prevention mechanism, more ambitious economic co-ordination, further measures on executive pay and credit rating agencies, and a European supervisory structure.

The draft provides a catalogue of actions and requirements including an appropriate crises prevention mechanism, the call on a more ambitious economic co-ordination approach, further measures on executive pay, Credit Rating Agencies, and a European supervisory structure.

 

Among others, the draft resolution requests a time limited EU-wide guarantee for deposits and liabilities of systemically important institutions.

 

With regard to executive pay, the draft resolution calls on the Commission to ensure that financial institutions disclose their remuneration policy, in particular the remuneration and compensation packages of directors, and to ensure that prudential supervisors include in their assessment of risk management the influence of remuneration, bonus schemes and taxation to ensure that they contain balanced incentives and do not encourage extreme risk taking.

 

Several points of the resolution relate to the European supervisory structure, starting from the request to ensures that the Lamfalussy Level 3 Committees will act as a European System of Supervisors to the proposal that oversight arrangements that aim to strengthen horizontal links between macro-economic and financial market supervision.

 

The draft also calls for the immediate set up of the high level group proposed by the Commission to elaborate a supervisory architecture for a better cross-sector and cross-border integration and co-ordination.

 

Deadline for amendments is Wednesday, 15 October.

The Draft Motion for a Resolution is attached below.

 



© European Parliament

Documents associated with this article

ECON draft Motion for a Resolution on the situation of the global financial system.doc


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