European Banking Authority to be Based in London

Reuters reports that European finance ministers have agreed to base the European Banking Authority, the new super-regulator, in London rather than Frankfurt, providing a major boost for the City. It had been proposed by members in the European Parliament to position the new watchdog next to the European Central Bank. However, the Ecofin council, which comprises George Osborne, the chancellor, and his counterparts from each EU member state, decided that London was its natural place.