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26 April 2010

CRD III: Consideration of amendments in the EP ECON committee

Most MEPs agreed that banks cannot have an unlimited delay for the implementation of the CRD III, nor a very broad grandfathering clause. Rapporteur Arlene McCarthy urged the committee to have a remuneration proposal in place as soon as possible.

Rapporteur Arlene McCarthy (UK/S&D) classified the amendments on the following groups:
·         Amendments asking for a delay on the implementation timeline of CRD III. McCarthy emphasized that this type of amendments were presented by the banking industry. 
·         Amendments on remuneration. All amendments recognized there is a need to tackle bank bonuses. There is also a broad agreement to stick to the timetable. A delay should not be considered. McCarthy also noted that there is an urgent need to have a remuneration proposal in place as soon as possible.
·         Amendments regarding the grandfathering clause. A broad grandfathering clause should not be considered as this could leave banks with toxic assets on their balance sheets. The CRD III must ensure that all banks have the capital needed against all types of liabilities.
·         Special supervisory measure for complex resecuritization measures (?unclear what measures what for!), further work to be done on the EC and review the resecuritization market.
Shadow rapporteur Othmar Karas (AT/EPP), warned that the US is planning to implement similar measures to those of CRD III by mid or end 2011 while the EC wants the CRD III to be implemented already in early 2011. He said that there is a need to coordinate with the US on capital requirements issue.
Vicky Ford (UK/ECR), shadow from the ECR group, said that it is unacceptable that some banks have been lobbying to delay the implementation date until 2014. Banks must provide full transparency of their balances sheet s numbers.

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