E.U. Lawmakers Set to Back Central Bank Oversight (BRUSSELS) - European lawmakers are expected to back legislation establishing a new, centralized oversight for the Europe's largest banks in a bid to stabilize the bloc's financial system. The European Parliament's vote Thursday to set up the so-called single supervisory mechanism is the first of three pillars of the European Union's planned banking union. However, the establishment of the remaining elements - setting up a joint deposit guarantee and an authority to restructure or wind down banks complete with a common backstop - is still far from being agreed upon. The bank oversight "pillar" is due to be up and running late next year and will be anchored with the European Central Bank following an assessment of the banks" balance sheets.