RPT-Reuters Summit-Czech c.banker lashes out at regulation plans

                                
 For more from the Reuters Central European Investment
Summit, click on:
http://www.reuters.com/summit/CentralEuropeanInvestment09?pid=500
 
 (Repeats story published late on Monday) 
                                
 VIENNA, Sept 28 (Reuters) - Policymakers may be doing more
harm than good by pushing forward with much of the proposed
tougher regulation of the financial industry, Czech central bank
Vice-Governor Mojmir Hampl said on Monday.
                                
 Hampl said politicians from both east and west had adopted a
herd mentality in their attempts to come up with a fix to the
industry, and had no right to lecture the market over
overspending given the record of most on state budgets.
                                
 "(It is) fascinating for me how these people are teaching
market players that market players were not preparing for bad
times more in advance, had no reserves for bad times and behaved
procyclically," Hampl told the Reuters Central and East European
Investment Summit in Vienna.
                                
 "Frankly these are exactly the same finance ministers who on
average were conducting very procyclical fiscal policies in
times prior to the crisis, having huge deficits in good times.
                                
 The G20 group of countries over the weekend agreed to pursue
regulation of pay in the financial industry, while the European
Union last week released a blueprint of proposed plans to boost
EU-wide regulation.
                                
 The bloc plans to create a banking super-watchdog, with
power to overrule countries, and a pan-European supervisor that
would warn of early signs of crisis. 
                                
 Hampl, who joined the bank board in 2006 and has been a
vice-governor since last year, criticised the plans to regulate
wages, oversee unregulated parts of the industry, ban certain
products, or what he called politicising accounting standards.
                                
 "My suspicion is that many of the proposals that are right
now being put on the table will eventually become the reasons
for the next financial turbulence."
                                
 "Without consideration of long-term impact (they) are
proposing very tough and important regulations that might
influence the whole financial industry over the long term," he
said.
                                
 Overhauling the way Europe's banks and financial services
are policed is central to legislation Brussels has drafted to
prevent a new financial crisis.     
                                
 The EU draft laws flesh out principles for reform agreed by
EU leaders in June when Britain accepted new pan-EU supervisors
for markets, banks and insurers that have binding powers over
European member states.
                                
 The rules need the approval of the 27 EU national
governments and the European Parliament to take effect. 
 (Reporting by Jan Lopatka; editing by Patrick Graham)