UK banks set for power struggle with Brussels

New European ‘banking union' proposals risk the ire of the UK's biggest banks as they could give EU officials broader powers over the City of London.

Under plans being tabled on Wednesday at the European Commission, a panel of officials would be given sweeping new powers to police the financial sector across the continent, including the City of London, the Telegraph reports. They would be given "full decision making powers" to impose EU law and to arbitrate disputes between Britain and the eurozone over the risks posed by UK banks. Decisions taken by the powerful body would be automatically binding unless Britain was able to win the unlikely backing of a majority and overturn them. Rulings by the panel could create huge costs fo...