EU eyes grip on UK lenders

EU OFFICIALS will today unveil controversial plans to hand greater powers over British banks to European regulators, in a move that will stoke fresh tensions between the UK and Brussels.

As part of plans for a Eurozone banking union, the European Banking Authority – which governs national regulators – would be given the authority to impose EU law on the City and demand banks be bailed out. The reforms, tabled by the European Commission, must now be passed by the European Parliament.