05 December 2008

EFBS calls Commission 'non-banks’ study a ‚complete waste of money’

“Non-banks” played a disreputable role in the current development of the subprime-market, Managing Director Zehnder said. Deliberations on a European Passport for these kinds of companies are absolutely not comprehensible.

The European Federation of Building Societies harshly criticised the Commission study on regulation of 'non-credit' institutions in mortgage markets. “Non-banks” played a disreputable role in the current development of the subprime-market, Managing Director Andreas Zehnder said. Deliberations on a European Passport for these kinds of companies are absolutely not comprehensible.

 

The EFBS calls the study to be "a complete waste of taxpayer´s money". The Commission proposes billions for recovery action plans and tries to improve the deposit guarantee schemes while again sympathizing with a system that led to the collapse of the financial markets, EFBS said.

 

Even the consultants themselves recognize in their study that most of the surveyed non-deposit lenders in the United Kingdom and Ireland either ceased to exist or are not able to provide new mortgage loans, EFBS states.

 

“The Commission´s use of taxpayer´s money to sponsor expensive surveys on a dying market should actually be a case for the Court of Auditors”, Zehender said.