What next for Europe’s Banking System?
Navas & Cusí Lawyers attend an event with the Vice-President of the European Commission in Belgium about the banking system in Europe and his future.
Our CEO Juan Ignacio Navas Marqués was invited at the European Commission last 15th november to the event “What next for Europe’s banking system?” where Mr. Valdis Dombrovskis, European Commission , Vice-President for the Euro and Social Dialogue, also in charge of Financial Stability, Financial Services and Capital Markets Union presented a package on capital requirements and set out his vision for the EU banking system.
The global financial crisis of 2008 brought to light the complexities and misrepresentation of many structured products. The failure of these investments could be blamed on the structure of the securities, where the pooled securities which were split into different tranches (French word meaning slices).
Under the Spanish law (Act 19/1992, sobre régimen de sociedades y fondos de inversión inmobiliaria y sobre fondos de titulización hipotecaria), for example, the securitization of a home mortgages implies that the entity that granted the loan is not any more the creditor of the mortgage.; even though it retains legal ownership of the loan and continues to maintain, unless otherwise agreed, its administration. Moreover, there is no need to register the change of ownership, what makes impossible to the debtor to find out who actually is the creditor of his mortgage.
In view of the above and regarding this fact extends to most European members (as Belgium, Germany, France or Netherlands), being nowadays the legal framework in this area so uneven and creating defenseless and abusive legal situation for costumers, Juan Ignacio Navas, in behalf of his law firm Navas Cusí Lawyers, asked to the Vice-President the following question, which is the matter of the video updated:
Is compatible with directive 93/13/EC and the European Union regulations the fact that financial institutions do not notify the mortgage debtor about the assignment of receivable, which prevents to the costumer the exercise of the right of withdrawal? is it more worthy and legal the fact the debtor could, for a less price, purchase his own debt and stay with less debt, before a third party does it? How can the European Commission adopt decisions to prevent these “legally appearing” abuses and to solve the economic context that the European Union lives now? is there any initiative by the commission taking into consideration that already two courts in Spain (from Barcelona (c-7/16) and Vigo (c-96/16) has referred a question to the court of justice of the European Union, rising about this problem in the economy? as the president responsible for the social dialogue of the European Commission which is the guardian of the treaties, do you think is a good idea to start a dialogue with the costumer association, investment association and go to see solutions to the new poors of the European union?