Yet another report

3.18.00pm GMT Sun 1st Mar 2009

Local Euro MP Diana Wallis MEP's report on the crisis at the troubled mutual Equitable Life received strong backing yesterday by the findings of a group of "wise men" whose task it was to propose measures to coordinate a European response to the financial crisis.

The Larosière report was drawn up by several former central bank or financial services regulator chairmen, including the Callum McCarthy, former chairman of the UK Financial Services Authority.

"This is yet another embarrassment for Gordon Brown. It is a further confirmation that the "light touch" financial model vaunted by both Conservative and Labour governments in the past is flawed. We need to do away with the beggar-thy-neighbour approach to financial regulation and move towards stronger supervision properly coordinated between Member States, and more effective crisis management procedures" said MEP Wallis.

Diana Wallis MEP's report into Equitable Life was approved, following an 18 month inquiry, by the European Parliament's plenary on June 2007. The UK Government promised a detailed response once it had dealt with the UK Parliamentary Ombudsman's parallel inquiry.

"Now that the parallel UK inquiry has received a response, albeit an unsatisfactory and very delayed one, and policyholders have even received an apology from the government, the European Parliament is entitled to a thorough response to the issues it raised, which continue to be of concern to policyholders who remain without compensation, and of wider significance in the current financial crisis." said MEP Wallis.

Related Links:

A copy of Diana Wallis' report (see esp. pages 200 and 358-359) can be found here.

A copy of the Larosière Report can be found here.