More Power to the ECB

The European Commission's proposed banking union, which is intended to stabilize the banking sector in the eurozone, may have some unintended consequences, according to an analysis from Reuters.

Under the proposal, the European Central Bank's 23-person Governing Council will oversee approximately 30 of Europe's largest multinational banks like BNP Paribas, Deutsche Bank and Santander, while smaller banks may be supervised independently. Banks based in countries that aren't in the eurozone won't be involved.

While the plan appears effective on the surface, Marc Jones of Reuters reports that the six-month timetable is viewed by many as "ambitious." These types of plans can take years, some argue, while others say the framework is laid out well enough that a 2013 goal is reasonable.

Other skeptics say that the ECB would have to be handed "unambiguous power" by European governments for the system to be effective, and conflicts of interest involving the firsthand knowledge of banks' conditions could result in biased policy decisions.

Unanswered questions remain when considering the ECB's control over Europe's banks. How many banks it will oversee, if heavyweights will be included along with smaller institutions, and whether existing supervisory committees, like Germany's BaFin, will remain intact are factors still left to be decided. (Reuters)

Lasting Effects (DealBook)

The fraud investigation by British officials into interest-rate manipulation may result in criminal charges against traders at Barclays.

Coming Clean (NYT)

While Liborgate has already resulted in several executive ousters, its effects aren't over. Some say it will spark an overhaul in how banks report their financials to avoid any future fudging of the numbers.

Slow and Steady (FINS)

While Friday's jobs report wasn't upbeat, some experts say it's a matter of reading between the lines. Skilled workers are still in demand while private industry continues to hire.

Oh, Canada (Globe and Mail)

Things may not be going so well on the Street, but Canadian banks appear to be rolling in dough. Five of the 10 most profitable public companies in the country are financial institutions.

Finishing Touches (Financial News)

As it aims to complete its push into prime services, HSBC has been making key hires, such as Paul Busby, an 18-year veteran of Bankers Trust and Deutsche Bank, and Brian Hughes of Goldman Sachs.

Tough Going (Bloomberg)

It was a tough month for hedge funds using computer-assisted trading strategies. According to one report, quant funds lost 3.1% last month, essentially eliminating gains made so far this year.

Watch Your Back (At Work)

If you're scaling the ranks of business, you've probably made a few enemies. Here are a few signs that someone's unhappy with your upward mobility, so you can avoid becoming the next "CEO-for-a-day."

Holding Strong (Associated Press)

Bank failures in the U.S. are at their lowest levels since the beginning of the financial crisis in 2008.

Buzz Around the Office

Lifeguard Ousted for Lifeguarding (Huffington Post)

A South Florida lifeguard was fired after attempting to save a drowning man. Tomas Lopez was relieved of his duties after his employer, Orlando-based Jeff Ellis and Associates, discovered that Lopez left the strip of beach his company is paid to patrol in an effort to save the man.

List of the Day: First Things First

So you've been handed a pink slip. Here are the first things you should do.

1. Don't send disparaging emails to co-workers or clients about your former employer.

2. Make any and all doctor's appointments you've been putting off before your health insurance runs out.

3. If you're leaving on a bad note, try to negotiate how your company will describe your separation to potential employers in the future.

(Source: U.S. News & World Report)