Four European nations call for new EU body to supervise banks

Four major European nations agreed Saturday to set up within the European Union a body to supervise banks as part of their efforts to stem the spread of the financial turmoil.

The leaders of Britain, France, Germany and Italy agreed Saturday to set up within the European Union a body to supervise banks as part of their efforts to stem the spread of the financial turmoil, triggered by the US subprime mortgage crisis, in Europe.

The four released a statement after an emergency summit in Paris to deal with the financial crisis. The statement said mechanisms should be established within the European Union to oversee cross-border European financial institutions and enhance international cooperation.

The leaders welcome the decision of the European Investment Bank to mobilize EUR30 billion of support for small and medium size European enterprises and urge the bank to frontload this effort.

 

~ more... ~