Financial Regulatory Forum

Is the Financial Stability Board the regulator to rule them all?

By Susannah Hammond, Thomson Reuters’  regulatory intelligence team. The views expressed are her own

LONDON, May 9 (Thomson Reuters Accelus) – The Financial Stability Board, regulatory policy maker of choice for the G20, has started to show its teeth. From its roots as the supranational setter of standards, guidance, policies and principles in the wake of the financial crisis, the FSB has started to clarify how it will monitor compliance with its requirements as well as deal forcefully with breaches.

A progress report on one of its strands of work regarding promoting global adherence to regulatory and supervisory standards on international cooperation and information exchange highlights how the FSB uses the International Monetary Fund as its objective reviewer of compliance with international standards. Critically, it shows how the FSB has taken the first steps in setting out the implications for what are called non-cooperative jurisdictions.

The FSB has noted that a small number of jurisdictions prioritised for evaluation have not, as at the end of April 2011, cooperated satisfactorily with the its process for promoting adherence to regulatory and supervisory standards on international cooperation and information exchange. It would appear that in those jurisdictions the authorities have, for whatever reason, chosen not to speak to the FSB.

The FSB says it will continue to pursue dialogue and has tried a variety of channels in an attempt to get the jurisdictions concerned to engage with the process. The FSB goes on to state that: “other measures may be implemented to apply additional pressure”. However, it does not say what those measures might be or how the pressure will be applied. The FSB will publish a list of non-cooperative jurisdictions if positive measures are not seen to be making sufficient progress. The use of such name-and-shame lists is deemed to have been effective at incentivising improvements in other areas such as tax standards.

INTERVIEW-Banker sees U.S. failed bank tally hitting 1,000

Dunne sees up to 400 bank failures this year

Dunne sees up to 400 bank failures this year

   By Karey Wutkowski
   WASHINGTON, Feb 25 (Reuters) – About 1,000 U.S. banks could fail as a result of the recent banking crisis that saddled financial institutions with large portfolios of bad loans, a leading investment banking executive said on Thursday. (more…)

ECB’s Trichet: Europe needs to improve legal tools

Trichet: need better tools

Trichet: need better tools

    PARIS, Dec 7 (Reuters) – Europe needs new tools to ensure authorities can intervene effectively in the case of the failure of a systemically important financial institution, European Central Bank President Jean-Claude Trichet said on Monday. (more…)

REUTERS SUMMIT-Key banker sees cost of U.S. bank failures rising

FDIC spokesperson Roberta Valdez shows identification to gain entry at a California National Bank branch in downtown Los Angeles October 30, 2009. The failed bank was seized by U.S. authorities and acquired by U.S. Bancorp. (File Photo) REUTERS/Sam Mircovich   (UNITED STATES BUSINESS) By Karey Wutkowski
NEW YORK, Nov 16 (Reuters) – The cost of U.S. bank failures will continue to rise sharply and will likely exceed the government’s current expectations, a leading investment banking executive said on Monday.

James Dunne, senior managing principal of Sandler O’Neill, said he believes up to 1,000 banks will fail during the current crisis and the total bill will surpass the government’s latest projection of $100 billion.

(more…)

U.S. banks to prepay fees to cover failure costs

By Karey Wutkowski
WASHINGTON, Nov 12 (Reuters) – U.S. banks will prepay three years of industry fees to give the government about $45 billion in cash to handle the rising tide of bank failures, under a rule finalized by the Federal Deposit Insurance Corp on Thursday.

(more…)

US FDIC to meet Nov. 12 to finalize bank fee plan

WASHINGTON, Nov 6 (Reuters) – U.S. regulators will meet Nov. 12 to finalize their proposal to have banks prepay three years of industry assessments, which would give the government cash to handle the rising tide of bank failures.

(more…)

U.S. banks give nod to prepaying fees, seek tweaks

By Karey Wutkowski
WASHINGTON, Nov 3 (Reuters) – U.S. banks are lauding regulators for avoiding another emergency fee to replenish the deposit insurance fund, but are suggesting tweaks to a plan for them to prepay three years of regular assessments.

(more…)

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