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02 October 2012

Comments on the Liikanen Report (with audio)


Have key elements already been overtaken by other proposals since the Group was launched back in February?

CONFIDENTIAL

My immediate blog

The Liikanen Group Report proposed powerful remedies to the ills of the banking system – but explicitly stopped short of a legal splitting up of banks. Instead, the Group has gone for a bank holding company structure of legally (and IT) separate companies. But the red lines between some of the entities still look quite wish-washy. Indeed, have key elements already been overtaken by other proposals since the Group was launched back in February? In particular, the Commission proposal on Bank Resolution and the BIS consultation on a Fundamental Review of Trading Book Capital Requirements have already eaten some of the Group’s red meat. Have they turned the report into a bit of a damp squib? The Barnier reaction may be telling: “This report will feed our reflections on the need for further action”. Sounds a bit like feeding in the long grass!

To read the full article and listen to my spoken commentary, please click on the link below.



© Graham Bishop

Documents associated with this article

Comments on the Liikanen Report.pdf


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