Cross-border financial groups and supervision in Europe after the crisis

The financial crisis has dramatically demonstrated that the increasing role of cross-border financial intermediaries in the Eu has not been supported by adequate pan European supervision.The aim of the paper is to focus on the shortcomings of supervision in the Eu, and then to review the recent proposals for a new European supervisory architecture, analyzing the impact on Eu cross-border financial groups (Dexia, Fortis) and the actions taken by the national authorities to deal with the crisis. We critically evaluate the possible path to reform, focusing on the role of the prudential supervision in relation to macro control of systemic risk, and of the College of Supervisors with regard to the supervision of cross-border groups.