TOPWRAP 6-EU backs new banking rules; IMF sees stronger 2010

Fri Jun 19, 2009 10:09pm BST
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* EU leaders back bloc-wide bank supervision

* 2010 growth may be better than previous forecast: IMF

* Stanford to appear in U.S. court on fraud charges

* Equity markets see brighter signs in U.S. data (For more on the global financial crisis, click [nCRISIS])

By Darren Ennis and Patricia Zengerle

BRUSSELS/WASHINGTON, June 19 (Reuters) - European Union leaders agreed on Friday to more steps to avert a repeat of the banking crisis and the IMF said 2010 might deliver stronger growth than earlier forecast, adding to a recent run of better economic news.

The EU leaders backed the creation of a European system of financial supervisors, but gave them only limited powers.

The agreement, outlined in a draft summit declaration obtained by Reuters, followed U.S. President Barack Obama's announcement on Wednesday of what he said was the biggest reform of U.S. financial supervision since the 1930s.

In the draft declaration, the leaders said: "The European Union, like the rest of the world, still faces the effects of the deepest and most widespread recession of the post-war era. It is imperative for the EU to continue to develop and implement the measures required to respond to the crisis." [ID:nLJ359841]  Continued...

 
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