Brinkhorst, L.J.

Louis, J.-V.

Smits, R.

UvA-DARE

De Larosière report fails to tackle main issues

International Migration, Integration and Social Cohesion online publications

UvA-DARE is a service provided by the library of the University of Amsterdam (https://dare.uva.nl)UvA-DARE (Digital Academic Repository)De Larosière report fails to tackle main issuesBrinkhorst, L.J.; Louis, J.-V.; Smits, R.Publication date2009Document VersionFinal published versionLink to publicationCitation for published version (APA):Brinkhorst, L. J. (null), Louis, J-V. (null), & Smits, R. (null). (2009). De Larosière report fails totackle main issues., Euractiv.com. http://www.euractiv.com/en/financial-services/larosire-report-fails-tackle-main-issues/article-181014General rightsIt is not permitted to download or to forward/distribute the text or part of it without the consent of the author(s)and/or copyright holder(s), other than for strictly personal, individual use, unless the work is under an opencontent license (like Creative Commons).Disclaimer/Complaints regulationsIf you believe that digital publication of certain material infringes any of your rights or (privacy) interests, pleaselet the Library know, stating your reasons. In case of a legitimate complaint, the Library will make the materialinaccessible and/or remove it from the website. Please Ask the Library: https://uba.uva.nl/en/contact, or a letterto: Library of the University of Amsterdam, Secretariat, Singel 425, 1012 WP Amsterdam, The Netherlands. Youwill be contacted as soon as possible.Download date:10 Mar 2023De Larosière report fails to tackle main issueshttp://www.euractiv.com/en/print/financial-services/larosire-report-fails-tackle-main-issues/article-181014[24-6-2010 18:07:17]Published on EurActiv (http://www.euractiv.com)Source URL: http://www.euractiv.com/en/financial-services/larosire-report-fails-tackle-main-issues/article-181014De Larosière report fails to tackle main issuesPublished: 06 April 2009"The de Larosière report fails to tackle the main fault lines that the credit crisis has shown to exist in theEU supervisory landscape," write Professors Laurens Jan Brinkhorst (University of Leiden), Jean-VictorLouis (Université Libre de Bruxelles) and René Smits (University of Amsterdam) in a March paper."The report does nothing to repair the absence of clear EU-wide authority to take decisions, also in respectof the supervision, bail-out or liquidation of individual firms, or the clear lack of effectiveness of colleges ofsupervisors (see Fortis) which already operated without transparent decision-making," write the authors.Regarding colleges of supervisors, "the report does not address the danger that each such college willdevelop differently from its peers overseeing other cross-border firms, which would undermine effectivesupervision and a level playing field among the larger institutions themselves," they say."As these colleges consist of different authorities, reflecting national markets […], they will have differentideas on how to act in the face of prudential concerns or when banks are in distress," the authors state."This does nothing to enhance the unity of the market or of its overseers," the paper claims.The professors deplore "the timidity of the group's proposals in respect of deposit guarantee schemes"."An EU-wide fund to finance pay-outs is exactly what should be considered to prevent 'passing the buck'problems," they write."Coordination between central banks and prudential supervisors is necessary in any case," underline theauthors. "Not making the ECB competent or, at least, closely involving it in prudential supervision, is amistake which the report should not have made," they believe.Finally, the paper stresses the "need for further alignment of national competences in respect of bankbailouts, including ex ante agreement on burden sharing in case of failure of a major cross-border firmand, perhaps, even EU-wide fiscal authority to step in to avoid financial disasters in the future"."For all its wisdom and sometimes far-reaching suggestions, the de Larosière report fails us. Europedeserves better solutions," the academics conclude. 

English

UvA-DARE is a service provided by the library of the University of Amsterdam (https://dare.uva.nl)UvA-DARE (Digital Academic Repository)De Larosière report fails to tackle main issuesBrinkhorst, L.J.; Louis, J.-V.; Smits, R.Publication date2009Document VersionFinal published versionLink to publicationCitation for published version (APA):Brinkhorst, L. J. (null), Louis, J-V. (null), & Smits, R. (null). (2009). De Larosière report fails totackle main issues., Euractiv.com. http://www.euractiv.com/en/financial-services/larosire-report-fails-tackle-main-issues/article-181014General rightsIt is not permitted to download or to forward/distribute the text or part of it without the consent of the author(s)and/or copyright holder(s), other than for strictly personal, individual use, unless the work is under an opencontent license (like Creative Commons).Disclaimer/Complaints regulationsIf you believe that digital publication of certain material infringes any of your rights or (privacy) interests, pleaselet the Library know, stating your reasons. In case of a legitimate complaint, the Library will make the materialinaccessible and/or remove it from the website. Please Ask the Library: https://uba.uva.nl/en/contact, or a letterto: Library of the University of Amsterdam, Secretariat, Singel 425, 1012 WP Amsterdam, The Netherlands. Youwill be contacted as soon as possible.Download date:25 Jul 2022De Larosière report fails to tackle main issueshttp://www.euractiv.com/en/print/financial-services/larosire-report-fails-tackle-main-issues/article-181014[24-6-2010 18:07:17]Published on EurActiv (http://www.euractiv.com)Source URL: http://www.euractiv.com/en/financial-services/larosire-report-fails-tackle-main-issues/article-181014De Larosière report fails to tackle main issuesPublished: 06 April 2009"The de Larosière report fails to tackle the main fault lines that the credit crisis has shown to exist in theEU supervisory landscape," write Professors Laurens Jan Brinkhorst (University of Leiden), Jean-VictorLouis (Université Libre de Bruxelles) and René Smits (University of Amsterdam) in a March paper."The report does nothing to repair the absence of clear EU-wide authority to take decisions, also in respectof the supervision, bail-out or liquidation of individual firms, or the clear lack of effectiveness of colleges ofsupervisors (see Fortis) which already operated without transparent decision-making," write the authors.Regarding colleges of supervisors, "the report does not address the danger that each such college willdevelop differently from its peers overseeing other cross-border firms, which would undermine effectivesupervision and a level playing field among the larger institutions themselves," they say."As these colleges consist of different authorities, reflecting national markets […], they will have differentideas on how to act in the face of prudential concerns or when banks are in distress," the authors state."This does nothing to enhance the unity of the market or of its overseers," the paper claims.The professors deplore "the timidity of the group's proposals in respect of deposit guarantee schemes"."An EU-wide fund to finance pay-outs is exactly what should be considered to prevent 'passing the buck'problems," they write."Coordination between central banks and prudential supervisors is necessary in any case," underline theauthors. "Not making the ECB competent or, at least, closely involving it in prudential supervision, is amistake which the report should not have made," they believe.Finally, the paper stresses the "need for further alignment of national competences in respect of bankbailouts, including ex ante agreement on burden sharing in case of failure of a major cross-border firmand, perhaps, even EU-wide fiscal authority to step in to avoid financial disasters in the future"."For all its wisdom and sometimes far-reaching suggestions, the de Larosière report fails us. Europedeserves better solutions," the academics conclude. 

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UvA-DARE is a service provided by the library of the University of Amsterdam (http://dare.uva.nl)
UvA-DARE (Digital Academic Repository)
De Larosière report fails to tackle main issues
Brinkhorst, L.J.; Louis, J.-V.; Smits, R.
Link to publication
Citation for published version (APA):
Brinkhorst, L. J. (null), Louis, J-V. (null), & Smits, R. (null). (2009). De Larosière report fails to tackle main
issues., Euractiv.com. http://www.euractiv.com/en/financial-services/larosire-report-fails-tackle-main-
issues/article-181014
General rights
It is not permitted to download or to forward/distribute the text or part of it without the consent of the author(s) and/or copyright holder(s),
other than for strictly personal, individual use, unless the work is under an open content license (like Creative Commons).
Disclaimer/Complaints regulations
If you believe that digital publication of certain material infringes any of your rights or (privacy) interests, please let the Library know, stating
your reasons. In case of a legitimate complaint, the Library will make the material inaccessible and/or remove it from the website. Please Ask
the Library: https://uba.uva.nl/en/contact, or a letter to: Library of the University of Amsterdam, Secretariat, Singel 425, 1012 WP Amsterdam,
The Netherlands. You will be contacted as soon as possible.
Download date: 08 Feb 2021
De Larosière report fails to tackle main issues
http://www.euractiv.com/en/print/financial-services/larosire-report-fails-tackle-main-issues/article-181014[24-6-2010 18:07:17]
Published on EurActiv (http://www.euractiv.com)
Source URL: http://www.euractiv.com/en/financial-services/larosire-report-fails-tackle-main-issues/article-181014
De Larosière report fails to tackle main issues
Published: 06 April 2009
"The de Larosière report fails to tackle the main fault lines that the credit crisis has shown to exist in the
EU supervisory landscape," write Professors Laurens Jan Brinkhorst (University of Leiden), Jean-Victor
Louis (Université Libre de Bruxelles) and René Smits (University of Amsterdam) in a March paper.
"The report does nothing to repair the absence of clear EU-wide authority to take decisions, also in respect
of the supervision, bail-out or liquidation of individual firms, or the clear lack of effectiveness of colleges of
supervisors (see Fortis) which already operated without transparent decision-making," write the authors.
Regarding colleges of supervisors, "the report does not address the danger that each such college will
develop differently from its peers overseeing other cross-border firms, which would undermine effective
supervision and a level playing field among the larger institutions themselves," they say.
"As these colleges consist of different authorities, reflecting national markets […], they will have different
ideas on how to act in the face of prudential concerns or when banks are in distress," the authors state.
"This does nothing to enhance the unity of the market or of its overseers," the paper claims.
The professors deplore "the timidity of the group's proposals in respect of deposit guarantee schemes".
"An EU-wide fund to finance pay-outs is exactly what should be considered to prevent 'passing the buck'
problems," they write.
"Coordination between central banks and prudential supervisors is necessary in any case," underline the
authors. "Not making the ECB competent or, at least, closely involving it in prudential supervision, is a
mistake which the report should not have made," they believe.
Finally, the paper stresses the "need for further alignment of national competences in respect of bank
bailouts, including ex ante agreement on burden sharing in case of failure of a major cross-border firm
and, perhaps, even EU-wide fiscal authority to step in to avoid financial disasters in the future".
"For all its wisdom and sometimes far-reaching suggestions, the de Larosière report fails us. Europe
deserves better solutions," the academics conclude. 


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De Larosière report fails to tackle main issues

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