EU Reaches Deal on ECB Oversight Powers Over Euro-Area Banks

European Union lawmakers and national governments clinched a provisional deal on legislation to turn the European Central Bank into a supervisor, a move that would pave the way for the currency bloc’s firewall fund to provide direct bailouts to banks.

Members of the European Parliament and officials from Ireland, which holds the rotating presidency of the EU, brokered an accord today after five hours of talks in Brussels. The agreement hands lawmakers a role in appointing the head of the ECB bank supervision board and equips the European Banking Authority with stronger powers to request information from national regulators.