Money Matters - Simplified

EU seeks tighter bank oversight

Brussels -- The European Commission wants to amend its rules governing supervision of "financial conglomerates" to extend to parent companies.

The EC executive's proposal Monday came as individual member states of the 27-nation European Community fought with the European Parliament over creation of new financial supervisory entities designed to oversee banking and insurance industries in more than one country, The EUobserver reported.

"Drawing lessons from the financial crisis, the commission proposes to equip national financial supervisors with new powers to better oversee the conglomerates' parent entities, such as holding companies," the EU executive said in a statement.

The EU's existing rules were adopted in 2002 and any new rules would have to be agreed on by the parliament and member states.

Copyright 2010 United Press International, Inc. (UPI).

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