The euro zone's future bank supervisor on Wednesday promised a warts-and-all probe into the bloc's still fragile financial system, conceding that she and other supervisors had made mistakes in the past. Seeking the backing of the European Parliament to become the supervisor for euro zone banks, Daniele Nouy listed sovereign debt among the banks' potentially riskiest assets as she laid down her ambitions for testing the health of lenders. Defending her role as French supervisor in the collapse of Franco-Belgian group Dexia, Nouy expressed regret over the "mistakes" she and her supervisory peers made in the financial crisis. "Like many other supervisors, holding sovereign debt and assets linked to loans of local authorities, the risk wasn't flagged and clear to us," she said.
via Business News - Yahoo Finance http://finance.yahoo.com/news/ecb-supervisor-promises-come-clean-175443570.html
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