Brussels, 10/02/2009 (Agence Europe) - During a speech made to the European and International Affairs Institute on Monday 9 February in Dublin, Charlie McCreevy declared: “Some banking lobbyists have sought to put down amendments in the European Parliament at the behest of their sell-side investment banking members - that would totally neuter the proposal's effectiveness. More irresponsibly still, they have sought to undermine a requirement for adequate due diligence on securitization positions prior to investing - with a form of wording that would make it virtually impossible for supervisors to monitor compliance”. The commissioner responsible for the internal market subsequently alluded to attempts by the banking industry to prevent the revised legislation, compelling them to have at least 5% of the assets secured which are then sold on to the financial markets. The European Commission produced a proposal in this connection last October (EUROPE 9752), which the Commission used for its general guideline at the end of last year (EUROPE 9787). The European institutions aim to obtain a political agreement in a first reading before the end of the EP's mandate next April. Speaking in Dublin, Commissioner McCreevy reiterated his intention to propose new amendments to the directive on requirements on own funds for credit bodies (EUROPE 9827). These amendments will be aimed at introducing “much stronger” requirements governing the exposure of assets in trading books, as well as a limit on bank debt facilities. Praising the positive effects of the Spanish model, which requires lending institutions to develop reserves in periods of economic growth so that they can weather periods of turbulence more effectively, Mr McCreevy indicated that he would support attempts to reach a specific international agreement in the work carried out by the G20 on financial stability. He believes that “this model serves to restrain excessive expansion during booms. And it reduces the likelihood of a much diminished capital base in recessionary times which makes it more difficult for banks to lend, thereby preventing the kick-starting of sustainable recovery. Ideally, we should get international agreement on such a revised regime and I will be pushing for it”. (M.B./transl.rh)