European bankers fight back, as they reject proposed laws aimed at Brexit

Being disturbed by the various impact Brexit is causing the system, bankers in Europe have placed a demand on the European Union to backpedal on planned various regulatory changes ahead.

The bankers are deeply worried because they said the proposed changes would not let them compete globally.

As a result, bankers in France and Germany are making serious moves to stop the obvious power grabs by EU leaders concerning that such policies will hinder growth, result to loss of jobs and kill profits of various businesses.

According to Frederic Oudea, chair of the European Banking Federation, and chief executive of SocGen: "We cannot ignore the growing fragmentation of the international regulatory landscape in light of recent political changes notably in the US.

"The perspective of the Brexit adds ... to that trend.

"This topic is particularly important at a time where we need to think strategically about the direction we want to take for capital market activities in Europe in light of Brexit consequences.

"The Economic Affairs Committee has oversight of financial rule-making in the European Parliament, which has joint say with member states on approving the EU's laws.”

Also speaking was Andreas Treichl, chief executive of Austria's Erste Group, who said he was spending most of his time with politicians and 10 regulators, rather than with customers.

He said: "Please reflect on what you have done.

"It's very, very difficult for us to be helpful to create prosperity, and part of the reason is ourselves, and part of the reason is you, the politicians, and part of the reason is the regulators.

"Who do you think will finance start-ups? The capital market is not there, the private investors are not there, and banks increasingly face difficulties in doing it.”

In the meantime Karl-Peter Schackmann-Fallis German Savings Banks Association board member stressed that banks need “a regulatory pause."

Brussels announced last week of a proposals to implement "limitations" on central banks across the remaining 27 states as they continue to power grab.

Accordingly, the EU's European Securities and Markets Authority (ESMA), established in Paris, says it does not support "competition" as it arranges to issue its new rules and regulations before the summer.

The rules, which are being packaged under the "Capital Markets Union" (CMU), is being targeted to clamp down European-based finance firms in a post Brexit environment.

According to the regulator, far-reaching rules will be implemented that financial institutions, including central banks, will must follow.

ESMA chairman Steven Maijoor said: "This work is aimed at avoiding competition on regulatory and supervisory practices between member states, and a possible race to the bottom, which might be detrimental to the capital markets union.

"Noting the EU is keen to put blocks in place they are also looking at broker-dealer trading arms of banks in Britain and added there would be "potential limitations to outsourcing and delegation".