add this whine to that of jamie dimon's sad bleating about basel from monday (see my previous post and related link)...Britain to sue ECB over threat to City
Britain is to sue the European Central Bank for setting rules that allegedly handicap the City of London and would force one of the world’s largest clearing houses to decamp operations to the euro area.
The unprecedented legal action underlines the depth of ministerial concern over the ECB policy, which comes as the UK engages in a turf war with France and Germany over Europe’s financial markets infrastructure.
An ECB policy paper, released in the summer, requires clearing houses to be based in the eurozone if they handle more than 5 per cent of the market in a euro-denominated financial product.
Britain will ask the courts to strike down the rule on the grounds that it restricts the free movement of capital and infringes on the right to establish cross-border businesses across a multicurrency European Union.
The policy, if enforced by the ECB, would undermine London’s financial market infrastructure since it would require that clearing houses shift many of their operations to the eurozone – most likely Frankfurt or Paris.
British diplomats have long feared that Paris was leading attempts to rig market regulations in a bid to shift the centre of gravity for financial services from the City to the continent.
The UK fought off French attempts in recent months to insert into an EU directive a requirement for clearing houses to have access to central bank liquidity – a measure effectively confining most euro-denominated clearing to the eurozone.
of COURSE france and germany want not just a BIGGER piece of the pie, they want the BIGGEST piece... ain't it fun to watch the global banksters and their gang of crooks go to war with each other...?Labels: banksters, Basel, City of London, elites, European Central Bank, Financial Times, France, Frankfurt, Germany, Jamie Dimon, Paris, super-rich, United Kingdom
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