View more on these topics

Darling concedes to Europe over bank bailouts

Chancellor Alistair Darling has backed down on a major piece of European legislation which will give powers to the European systemic risk board allowing them to force national Governments to rescue banks in the event of a future credit crunch.

City minister Lord Myners said at a Treasury select committee meeting last month that the UK would lobby against such powers being introduced saying that responsibility for bailing out banks should rest with the national Governments because they would be paying for it.

But the latest text of the agreed legislation allows the ESRB to defy a national Government with disputes over paying for bailouts to be reached by majority voting.

The UK was pushing for a final right of veto but this is understood to have been omitted from the text. There will be an appeals process for those objecting to ESRB decisions but it is likely to be a drawn out process.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm