Flash: ECB looks set to be single bank supervisor in Europe - BBH

FXstreet.com (Barcelona) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman feels that the single bank supervisor appears to have been agreed upon and that is the ECB.

However, he adds that rather than supervise all banks as some initially wanted (perhaps some want this in some Machiavellian way to tie the ECB up and its resources) the ECB is likely to be responsible for around 200 of the largest banks. Additionally he comments that the ECB, however, is insisting that it has some authority to shutter insolvent institutions and that a rigorous examination of the financial condition of the institutions it will be responsible for before it accepts its new mandate. He finishes by writing, “What the ECB has in mind appears to be more than the unconvincing stress tests seen in recent years.”