In the best European traditions, the new, single European banking supervisor will be looking to integrate the practices of the member states. As such we can look forward to:
Liquidity oversight, in the manner of Northern Rock and Dexia, will be assigned to Belgium and Britain;
ABS and CDO investing, a la IKB, is the domain of the Germans;
Interest rate derivatives, a la Italease, will be down to the Italians;
Mortgage lending, a la the Cajas, falls to the Spanish;
M&A oversight, a la Monte Paschi, again the Italians;
Trading and back office, a la Jerome Kerviel/Socgen and Adoboli/UBS, is the domain of the French and Swiss;
Commercial real estate is for the Irish;
Know your client/moneylaundering, the Vatican;
And given we need an outsider to ensure impartiality, Iceland has kindly agreed to provide the first Governor.
