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Deutsche Bundesbank Ready to Integrate BaFin financial or Bundesanstalt fur Finanzdienstleistungsaufsicht

By Robert J. Steiner for CEOWORLD Magazine Updated:October 4, 2009

The global financial crisis is probably not completely over and banks are likely to experience further setbacks, the Bonn-based BaFin, the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – known as BaFin for short) would be integrated into the Frankfurt-based Deutsche Bundesbank.

The board of the Bundesbank, Germany’s central bank, voted on Oct. 2 to support a revamp of financial supervision that would hand it nearly full control over the country’s banks, Bundesbank spokesman Benedikt Fehr said today.

The Bundesbank’s offer may help to close gaps and end overlaps in the financial oversight of Europe’s biggest economy. German banks’ losses from investments linked to subprime mortgages last year almost toppled the country’s financial system and forced the government to pledge billions of euros in banking guarantees.

Chancellor Angela Merkel’s Christian Democratic Union, its Christian Social Union Bavarian sister party and the Free Democrats, their prospective coalition partner, have said they would use a majority in parliament to end shared responsibilities and give the Bundesbank more say.

BaFin is an independent public-law institution and is subject to the legal and technical oversight of the Federal Ministry of Finance. It is funded by fees and contributions from the institutions and undertakings that it supervises. It is therefore independent of the Federal Budget.

BaFin has 1,700 employees working in Bonn and Frankfurt am Main. They supervise around 2,080 banks, 730 financial services institutions, 630 insurance undertakings, 26 pension funds, 6,000 investment funds and 78 investment companies (as of January 2008).

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Tagged with: BaFin, Benedikt Fehr, Bundesanstalt für Finanzdienstleistungsaufsicht, Bundesbank, Deutsche Bundesbank, Federal Financial Supervisory Authority, global financial crisis

Wm G

Have been dealing with BaFin over past two years regarding two 'outfits' in Frankfurt and Berlin who had a quasi licence apparently as 'sales agents' but used the tactics and strategy of 'boiler rooms' peddaling useless shares pushed by another unlicenced outfit in Chicago (with connections in Panama.
The 'secure' escrow German lawyer engaged by some other dubious 'boiler rooms' either in Hong Kong or or other location received funds from her.
One of the criminals in Hong Kong has been incarcerated in Hong Kong jail.
This was reported to BaFin but they have not taken action either in Frankfurt or Berlin . Action has been taken by the SEC in USA and Hong Kong Police. So not surprised that BaFin are being reined in which appears to be for their ineptitude in bring to justice the fraudsters in Frankfurt and Berlin.