BaFin, the financial regulator created last year to supervise the banking, insurance and securities markets in Germany, is so worried about the financial stability of some German banks that it has representatives attend meetings of their supervisory boards. Or so claims a report in today’s Financial Times. The report says four of the biggest commercial banks – Commerzbank, Deutsche, Dresdner and HVB – have endured this humiliation, as have DZ Bank, WestLB and a number of other Landesbanks, including BGB, Bayerische Landesbank and NordLB. The report quotes Helmut Bauer, director of banking regulation at BaFin, describing the practice as “good proactive regulation .. in no way a signal that anything is going wrong.”
German Regulator Sits In On German Bank Board Meetings, Says Report
BaFin, the financial regulator created last year to supervise the banking, insurance and securities markets in Germany, is so worried about the financial stability of some German banks that it has representatives attend meetings of their supervisory boards. Or so