My colleague Arlene McCarthy, Labour MEP for the North-West, has been doing sterling work on banking regulation and associated issues over the past few years.
Arlene’s latest report on insider dealing and market manipulation was agreed on Tuesday 10 September when MEPs voted in favour of tougher rules to prevent market abuse. Arlene is absolutely clear that this is a key step in bringing financial markets under control.
Insider dealing distorts the financial market in that the share price of the company involved usually shoots up and those who own shares in it profit thanks to people with privileged information using it for their own benefit.
Insider dealing and market manipulation have inevitably undermined the stability of the financial system. In many cases taxpayers’ money has been used to bail out banks that took too much risk in their drive for profits.
Abuse of the market, of course, has made some bankers rich. Thankfully for us taxpayers, their ill-gotten gains will soon be a thing of the past across the European Union.
Asked about her report Arlene said, “There is still much to do in restoring the trust and confidence in banks and the financial services industry. We must get the real economy moving again and make sure consumers are protected in the financial services sector.”
Arlene and the European Parliament are also working on a directive that proposes criminal penalties for those involved in market abuse.