EU, US plan tougher financial sector regulations

European Union and the US are planning tougher financial sector rules in order to prevent a repeat of the recent financial crisis.

EU finance ministers meeting to look for ways to tighter banking supervision today proposed a bank levy to pay for banks that collapse in the future, but without any wider support.

US President Barack Obama also called for tougher financial regulations to avert a repeat of the financial market crises that led to the collapse of hundreds of banks in the West, including some of the major banks.

For Obama, the bill on banking regulation overhaul is the next major piece of legislation that he wants to sign into law this year.

At The EU meeting of finance heads, French finance minister Christine Lagarde suggested a risk-based levy on all major financial groups "on the basis of the riskiest activities that they conduct."

The riskier the business, the heavier the fee or "tax" as she calls it.