EU Seeks to Prevent ECB Dominance of European Bank Authority

European Union officials are seeking to prevent the 17 states that share the euro from dominating its forum for resolving disputes among financial regulators, the European Banking Authority, according to two people familiar with the plans.

Euro-area leaders agreed in late June that the Frankfurt-based European Central Bank should oversee lenders in the bloc as part of their efforts to quell the debt crisis. European Commission officials drafting a proposal for a common supervisor are concerned that the central bank’s legal independence may allow it to override decisions taken by the EBA, which co-ordinates the work of supervisors in the EU’s 27 member states.