Financial Supervision

New Boss, New Problems

Felix Hufeld has his work cut out.
  • Why it matters

    Why it matters

    BaFin is losing influence and Felix Hufeld, a fan of regulation, may wish to tighten its control through new financial rules.

  • Facts


    • BaFin is a federal authority charged with supervising the financial sector in Germany.
    • It has been shedding powers to European institutions as part of the E.U.’s planned monetary union.
    • Felix Hufeld replaces Elke König, who is moving to a new E.U. banking supervision agency.
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It was a pretty fast rise: After only two years working at BaFin, the German financial markets watchdog, Felix Hufeld this week takes over its top job.

He succeeds Elke König, who left the agency to head up the E.U.’s new Single Resolution Board, set up in the wake of the 2008 financial crisis to supervise and, if needs be, winding down failing E.U. banks to prevent costly bailouts.

This new body and other European institutions has changed the role of  financial supervision in Germany. BaFin now has to fight hard to remain relevant.

“Effective supervision in an international context” is Mr. Hufeld’s goal. Increased cooperation with international supervisors such as the European Central Bank will be unavoidable in the future.

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