EU finance leaders back new regulations

BRUSSELS, Nov. 4 (UPI) -- European finance ministers approved tighter bank controls Tuesday ahead of a global finance summit scheduled for Nov. 15 in Washington.

French Finance Minister Christine Lagarde said the French concept of tighter regulations prevailed at the meeting, the Financial Times reported.

"We should not over regulate, but we need to make sure that we don't leave loopholes in the regulation," she said.

The basics of the plan, which Lagarde said had "massive support," will be sent to a meeting of 27 European Union leaders scheduled for Friday. The plan's next stop is a G20 summit meeting scheduled for mid-month in Washington.

The plan includes formation of a supervisory college for international financial firms and improved risk control measures, the Times reported.

Luxembourg Prime Minister Jean-Claude Juncker said the global financial crisis was due to a "deregulation frenzy."

"States had to counter a market failure … though they may have forgotten this over the last 20 years," he said.