Bundesbank Questions Legality of ECB Banking Supervision
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The Bundesbank questioned the legality of the European Central Bank becoming a single supervisor for all 6,000 euro-area banks.
It is not clear that article 127 paragraph 6 of the European Union Treaty “allows such a broad transfer of duties,” the Bundesbank said in its 2012 Financial Stability Review published in Frankfurt today. The supervision role must be kept completely separate from monetary policy and “it is doubtful that the granting of decision-making rights to a new body apart from the ECB Governing Council is in agreement with European primary law,” the Bundesbank said.