Extracts from the joint press briefing by José Manuel Barroso and Jacques de Larosière, President of the High Level Expert Group on EU Financial Supervision, on Larosière Group recommendations
Jacques de Larosière, Chairman of the High Level Group on Cross-border Financial Supervision, handed on 25/02/2009 to José Manuel Barroso, President of the EC, the recommendations by the experts Group on cross-border financial supervision. A report that urges phased EU financial oversight reform.
The President of the EC said that this report confirms his firm belief that a European System of Financial Supervision is indispensable. And he added that he is committed to engage immediately in its preparation. He explained that this report provides a very good basis on which to build proposals.
For him, the idea of "every man for himself" with no concern whatsoever about the neighbours is totally unacceptable, because workers and families have suffered the consequences of hubris in the financial markets.
The report recommends the creation of a new "European Systemic Risk Council," or ESRC, to be chaired by the European Central Bank, and including representatives of banking, insurance and securities supervisors. Jacques de Larosière explained that the reasons for this crisis are that the sound of alarm bells was no high enough and was not accompanied by action.