Publication

The European Commission has published its proposals for 1) a European banking union, which would be under the supervision of the European Central Bank, and 2) European-wide deposit insurance and resolution procedures. This brief, however, does not believe these proposals go far enough. It calls for the creation of a truly federal financial system and its application to the entire EU. In turn, the European Banking Authority (EBA) should remain in charge of all secondary rule-making and be given crisis-management powers similar to the FDIC in the US.