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

Type: Summary of press conference   Reference: I-060686   Duration: 10:26:32  Lieu:
End production: 25/02/2009   First transmission: 25/02/2009
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.

Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
PDF version

TIME DESCRIPTION DURATION
10:22:48 Title 00:00:05
10:22:53 General view of the press conference room 00:00:06
10:22:59 José Manuel Barroso, President of the EC, saying (in ENGLISH) that this report confirms his firm belief that a European System of Financial Supervision is indispensable. He is committed to engage immediately in its preparation. And this report provides a very good basis on which to build their proposals. 00:00:19
10:23:18 Cutaway 00:00:05
10:23:23 José Manuel Barroso saying (in ENGLISH) that every man for himself, with no concern whatsoever about the neighbours. That is no good enough. It never was. And now it is totally unacceptable. Workers and families across Europe and the world, have suffered the consequences of hubris in the financial markets. Citizens expect them to change the rules of the game and the way the game operates. They must not let citizens down. 00:00:26
10:23:49 Jacques de Larosière, Chairman of the High Level Group on Cross-border Financial Supervision, saying (in FRENCH) that they have devoted an important part of their work, dissecting the mechanisms that completely failed in the previous situation, and which transform an early warning in an action taken by the Central Bank, or a regulator European or national. 00:00:23
10:24:12 Cutaway 00:00:05
10:24:17 Jacques de Larosière saying (in FRENCH) that he thinks that if Europe can set up a system, which is not too complex and which can be set up quickly, and the European Central Bank wants that to be done, then the international global institutions will have the confidence in them that they don't have today. 00:00:19
10:24:36 Cutaway 00:00:06
10:24:42 Jacques de Larosière saying (in FRENCH) that they thought that for domestic banks obviously, they need to have them supervised by the closer supervisors, the national supervisors. This is how it works and this is how it will continue to work. So for cross-border institutions, the famous cross-border financial institutions, whether banks or ensurance companies, the best system will be involving and giving authority to the Colleges. 00:00:34
10:25:16 Cutaway 00:00:07
10:25:23 Jacques de Larosière saying (in FRENCH) that the Bank of England and the SFS will have their role to play in the body which will be called upon to examining systemic risks. If they look at the reasons for this financial crisis, is that they have not learned the alarm bells sufficiently strong, and these alarm bells were not accompanied by actions to stop the diversions that have proved disastrous. 00:00:30
10:25:53 José Manuel Barroso saying (in ENGLISH) that they want an integrated system of supervision in Europe. Which will be the exactly model for that? They will have to discuss it. But he thinks that it would be a very big mistake, and very difficult to explain to their European citizens, if they don't reach an agreement among the 27 Member States. There is a European dimension for the 27, on the need of reinforcing the actual situation to be able to give more confidence on the financing system. 00:00:39
10:26:32 Cutaway 00:00:07
Audiovisual Services
European Commission
ec.europa.eu/avservices
 
Conditions of use
© European Union, 2014