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Mar 17, 2015

UK bank watchdog mulls stress tests for foreign banks -sources

WASHINGTON/LONDON, March 17 (Reuters) – The British units of
foreign banks could be required by UK regulators to submit to
annual health exams for the first time, banking and industry
sources said, potentially bringing Britain’s policies into line
with those of the U.S. Federal Reserve.

The UK’s Prudential Regulation Authority (PRA) has recently
started asking foreign banks to submit data, the sources said, a
possible first step toward making them subject to the stress
tests, which assess if banks have enough capital to withstand a
hypothetical economic crisis.

Mar 12, 2015

Fed slashes payout plans of large Wall Street banks

WASHINGTON (Reuters) – Four of the largest U.S. banks just scraped by in an annual Federal Reserve check-up on the industry’s health, underscoring their top regulator’s enduring doubts about Wall Street’s resilience more than six years after the crisis.

Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz), Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) and JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz), all with large and risky trading operations, lowered their ambitions for dividends and share buybacks, the Fed said on Wednesday, to keep them robust enough to withstand a hypothetical financial crisis. The revised plans allowed them to pass the Fed’s simulation of a severe recession.

Mar 11, 2015

U.S. Fed slashes dividend plans of large Wall Street banks

WASHINGTON (Reuters) – Three major U.S. Wall Street banks had to scale back planned investor payouts after an annual check-up by the Federal Reserve, and two foreign banks failed the test altogether, a sign the Fed is keeping a tight lid on Wall Street.

Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz), Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) and JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz), all with large and risky trading operations, lowered their ambitions for dividends and share buybacks, the Fed said on Wednesday, to keep them robust enough to withstand a hypothetical financial crisis. The revised plans allowed them to pass the Fed’s simulation of a severe recession.

Mar 9, 2015

U.S. credit unions locked in cyber battle with their regulator

WASHINGTON, March 9 (Reuters) – A common question asked of
people in positions of power is what keeps them up at night.

For Debbie Matz, the head regulator for 6,350 of the
nation’s credit unions, it’s an easy answer: a cyber hacker
sneaking in through a credit union vendor, cracking through to
the larger U.S. financial system and wreaking havoc along the
way.

Mar 5, 2015

U.S. banks pass Fed capital test, trading books hurt

WASHINGTON/NEW YORK (Reuters) – All 31 U.S. banks passed a
test of how they would do in a next economic crisis, the Federal
Reserve said on Thursday, but those with large trading books
came out weak because of new elements in the check-up.

The Fed had assumed a surge in corporate defaults in the
toughest hypothetical scenario to test banks’ resilience, which
it said hit banks with large capital market activities.

Mar 5, 2015

Banks brace for U.S. Fed capital buffers inspection

WASHINGTON, March 5 (Reuters) – The largest U.S. banks and
their foreign rivals are facing a tough two-step check-up of
their financial health by the Federal Reserve, forcing the firms
to get a far better grip on how they measure risk.

In its annual “stress tests”, the Fed gauges whether banks
have enough shareholder capital to withstand a severe economic
shock like that of the 2007-09 crisis, when taxpayers spent
billions of dollars to keep the industry afloat.

Mar 3, 2015

Top U.S. regulators request more time in MetLife lawsuit

WASHINGTON (Reuters) – U.S. regulators on Tuesday asked for more time to react to a complaint by MetLife (MET.N: Quote, Profile, Research, Stock Buzz) over their decision to subject the insurer to tougher oversight, and requested a judgment in the lawsuit early next year.

Critics of the Financial Stability Oversight Council’s move to label MetLife “systemically important” are watching the case to see if it sheds light on why the regulator gave the insurer a tag many in the industry fear is harmful to business.

Mar 2, 2015

Don’t weaken leverage ratio, U.S. bank regulator tells peers

WASHINGTON (Reuters) – Regulators shouldn’t weaken a rule that limits banks’ borrowing, a senior U.S. bank supervisor said on Monday, indicating a possible split with the derivatives watchdog over the issue.

Tom Hoenig, second-in-command at the Federal Deposit Insurance Corp (FDIC), said he disagreed with the head of the Commodity Futures Trading Commission who has expressed concerns about the so-called leverage ratio.

Mar 2, 2015

German central banker urges rule change for risk-free governments bonds

WASHINGTON (Reuters) – Regulators around the world urgently need to change rules that allow banks to consider loans to governments risk-free, a top official at the German central bank said on Monday, a lesson brought home by Europe’s debt crisis.

“It appears urgently necessary to change those rules … if banks were required to do that, that would make them more resilient to financial distress,” said Andreas Dombret, who is in charge of banking supervision at the Bundesbank.

Mar 2, 2015

German central banker urges rule change for risk-free gov’t bonds

WASHINGTON, March 2 (Reuters) – Regulators around the world
urgently need to change rules that allow banks to consider loans
to governments risk-free, a top official at the German central
bank said on Monday, a lesson brought home by Europe’s debt
crisis.

“It appears urgently necessary to change those rules … if
banks were required to do that, that would make them more
resilient to financial distress,” said Andreas Dombret, who is
in charge of banking supervision at the Bundesbank.

    • About Douwe

      "I head up the Financial Services team in London. We're 20 journalists, covering M&A, IPOs, restructuring, banking, real estate, investment management, hedge funds and private equity. I've worked for Reuters in Zurich, Frankfurt and Amsterdam."
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