http://europa.eu
Geithner defends reforms; EU unveils regulatory plans
WASHINGTON, September 23 (Global Risk Regulator) --
US proposals for a new international agreement on
bank capital standards won't put US firms in a position
where their competitors would profit by operating with
lower standards, US Treasury Secretary Tim Geithner
told a Congressional panel today.
"We're going to negotiate an international agreement
on a set of standards that apply a level playing field
that people can understand and which can be enforced,"
Geithner said. He was replying to questions from
Congressman Barney Frank, chairman of the House of
Representatives' powerful financial services committee.
Geithner said the US has put out a detailed proposal
with a timetable so that "we can all move together".
Today's session was the committee's first in a final
round of hearings on US President Barack Obama's
plans for reforming America's financial regulation in
the wake of the global financial crisis. The hearing
took place as leaders of the Group of 20 (G20)
nations began gathering in the US city of Pittsburgh
for their third summit on the crisis, which is due to
start tomorrow and continue Friday.
In testimony today to the panel, Geithner urged
Congress to enact the Obama plan this year and not
let signs of an improving economy scupper
legislation. He defended the plan to create a new
consumer financial watchdog against criticism from
the banking industry and regulators.
Earlier this month, Geithner surprised G20 finance
ministers by issuing a policy statement setting out
eight principles for shaping a new international
capital accord.
Washington regulatory sources last week insisted
the Administration is not seeking to replace the
Basel II international bank capital adequacy
framework with a new international accord.
Meanwhile the European Commission, the
executive arm of the European Union, today
unveiled its plans for new pan-European
regulators to enforce common rules for banks,
insurers and securities markets. The proposals include a European Systemic
Risk Board to warn of future risks, and
watchdogs over banks and insurers across the
EU's 27 nations, as part of a two-tier system of
macro- and micro-prudential supervision. The
approach was first outlined in the De Larosière
report in February on the future of EU financial
regulation, which was subsequently endorsed
by the leaders of the EU member states. Financial Services Committee: http://financialservices.house.gov
US Treasury: www.ustreas.gov ;
