Nowotny blasts "lead supervisor" approach

Ewald Nowotny, the governor of the Austrian central bank, has strongly criticised the so-called "lead supervisor" approach to the regulation of global banks.

Speaking at a financial stability seminar at the National Bank of Belgium, Nowotny, who is also a member of the governing council of the European Central Bank, said: "It goes without saying that these are extremely unfavourable preconditions for effective crisis management."

He added that he favoured the establishment of a European Union