European governance in these sectors has to date relied almost exclusively on rules that, in an exaggerated pursuit of mutual guarantees, constrain the choices of each country. The result has been a Union that is better at prohibiting things than at getting them done.
* * * What must a bank be able to do? As always, the answer depends on whom you ask. Bankers or bank shareholders are likely to say that a bank must be able to make a profit. But as a supervisor I would tell you that a bank must be able to manage its risks. These answers do not contradict each other.