The Executive Director of the European Banking Authority (EBA), Adam Farkas, will join the Lobbying Association of Major European Banks (AFME) and become its CEO. Farkas had previously tried in vain to become head of the EBA. Most EBA staff learned of the imminent change through a media report (https://news.sky.com/story/top-eu-regulator-farkas-to-head-banking-lobbying-group-afme-11793826). MEP Sven Giegold, financial and economic policy spokesperson of the Greens/EFA group commented:
“Farkas’ walk through the revolving door is massively damaging the reputation of Europe’s banking supervision. Without a cooling off period, top insider information now flows from banking supervision to the banking lobby. Farkas is doing the European banking union a disservice. Much trust was destroyed during the financial crisis, but now Farkas is damaging trust in a central authority for crisis prevention.
We need binding cooling off periods for all sensitive positions in the EU agencies. A waiting period of 24 months would make sense. It is an invitation to avoid needed decisions that each agency has its own rules. The Farkas case shows how much we need an independent EU ethics authority in order to avoid conflicts of interest.
The Council of National Banking Supervisors should decide on a waiting period of at least 24 months in the case of Farkas. Farkas must immediately lose access to sensitive information and documents.
The Farkas case must be a wake-up call for European policy”.