Europe Watchdog May Be Toothless in Crisis Prevention
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Europe’s new risk watchdog probably lacks the teeth to avert the region’s next financial crisis, economists and analysts say.
The European Systemic Risk Board, which aims to identify and warn of brewing risks in the financial system, may fail to prevent future imbalances as it doesn’t have any legal power to enforce action, according to economists at ING Group, Barclays Capital and ABN Amro.