Commissioner Barnier: The US must take part in reforming bank compensation policies
02 November 2010
Concerning the financial reform, Barnier highlighted that policy-makers should deal with remaining macro-economic imbalances, instable exchange rates and the current price fluctuations on certain commodity markets.
He presented the three main areas where more work is needed:
1. Accounting standards. He expects that the US authorities – in particular the SEC – take the necessary step in order to transpose in the United States international accounting standards. This is an essential element of global reform.
2. Derivatives markets. In Europe, a proposal on OTC-derivatives has been put forward. The Commission has worked closely with Chairman Gensler to ensure that it is consistent with the approach taken here in the United States.
3. Proposals for a crisis management framework. This is an area where the United States have considerable experience through the system operated by the FDIC.
The FDIC has existed for several decades and has a lot of experience. Its competencies have been expanded in the Dodd-Frank Act. The challenge ahead is to make resolution mechanisms operational in a crossborder context.
© European Commission
