EU Commission says issues raised by Goldman Sachs probe show need for action on derivatives

EU: Goldman case shows need for new rules

BRUSSELS — The European Commission says that the issues raised by the probes into Goldman Sachs show the need for action on regulating complex financial investments known as derivatives.

EU Commissioner Michel Barnier “believes we need to put an end to behavior which led to such sophisticated financial products,” Barnier’s spokeswoman Chantal Hughes said.

Barnier feels that even many bankers have trouble understanding the risks.

The European Commission will propose new rules in June.

Under the proposals, Barnier plans to seek greater standardization, and other measures to increase transparency and financial safety.