Merkel faulted on banking supervision

Report of a FT interview with Guido Westerwelle, leader of Germany’s opposition Free Democrats, August 2009. He criticised the government of Angela Merkel, Chancellor, for advocating tighter financial regulation on the international stage but failing to tackle banking supervision at home.

Banking supervision in Germany is split between the Federal Financial Supervisory Authority (BaFin) and the Bundesbank, but reform has proven politically awkward.