Plight of Hypo highlights fragmented European regulation:

10/6/2008 | International Herald Tribune

An ad hoc response to the near collapse of German lender Hypo Real Estate highlights a great weakness in Europe's economic integration. Although the European Central Bank has power over the interest rate and broader monetary policy, it does not have authority over private banks, leaving that job to a patchwork of more than 50 regulators across the Continent. "We never developed the parallel political and regulatory integration that would allow us to face a crisis like the one we are facing today," said Sylvester Eijffinger, a member of the monetary-expert panel advising the European Parliament.

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