EU Lawyers: EBA Can’t Bind Commission on Bank Resolution
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The European Commission’s proposed bank resolution system shouldn’t be bound by European Banking Authority decisions, lawyers for the European Union’s 28 member states said.
The legal opinion puts a dent in efforts by the U.K. and Sweden, which are both outside the euro zone, to beef up the EBA’s role in the Single Resolution Mechanism proposed by EU financial-services chief Michel Barnier. The SRM’s main task will be to backstop the European Central Bank’s new role as common supervisor for banks within the 17-nation currency bloc.