Red tape 'tidal wave' threatens City

LEADING banker Sir David Walker has warned that a 'tidal wave' of Brussels red tape is about to engulf the City. He said that London's markets face 'unprecedented demands' from more than 20 new directives, initiatives and policy measures, mainly from the European Union. They cover market abuse, e-commerce, takeovers and rules to ensure banks keep enough capital.

Walker, chairman of the London Investment Banking Association, said: 'Taken together they will be like a tidal wave.' The European Commission said it aims to reduce clearing and settlement costs for shares and derivatives across Europe as part of the move to a single market in financial services. Cross-border settlement costs much more in the EU than in the US.