Financial Regulatory Forum

ANALYSIS – Obama attacks on banks fall flat but may persist

By Karey Wutkowski

WASHINGTON, Jan 20 (Reuters) – The Obama administration’s Wall Street bashing fell flat among voters in Massachusetts, but that doesn’t mean Democrats have ended their anti-bank rhetoric.

Major U.S. banks, which returned to sizable profits and lavish bonuses just months after taxpayers bailed out the financial system, represent a convenient target for politicians to score points with voters.

“It is too easy and ripe and necessary a target for the Obama White House because they’ve been labeled as protecting the banks … during the whole first year of their administration,” said Ethan Siegal, an analyst with the Washington Exchange, a private firms that tracks Congress and the White House for institutional investors.

In the past week, however, criticizing Wall Street fat cats has not translated into wins for Obama.

Massachusetts voters stripped the Democratic party of a crucial Senate seat on Tuesday, handing a surprise victory to Republican Scott Brown, a candidate Obama had painted as a friend of the banks.

U.S. Sen. Dodd urges plan to create super bank cop

SENATE    WASHINGTON, Sept 29 (Reuters) – A top U.S. senator said on Tuesday that he is moving forward with his effort to consolidate bank supervision into a single federal regulator, despite criticism from current bank regulators who do not want to lose their authorities.
   “It’s clear that we need to end charter shopping, where institutions look around for the regulator that will go easiest on them,” said Christopher Dodd, the Democratic chairman of the Senate Banking Committee.
   Dodd’s plan would consolidate the Office of the Comptroller of the Currency and the U.S. Office of Thrift Supervision into one regulator. It would also strip direct bank supervision powers from the Federal Deposit Insurance Corp and the Federal Reserve, transferring those powers to the new regulator. (Reporting by Karey Wutkowski, editing by Gerald E. McCormick) ((E-mail:karey.wutkowski@thomsonreuters.com +1 202 898 8374)) Keywords: FINANCIAL/REGULATION BANKS 
  
Tuesday, 29 September 2009 18:54:24RTRS [nWEN4142  ] {C}ENDS

G20 takes charge of world economy at U.S. summit

From L-R, France's President Nicolas Sarkozy, U.S. President Barack Obama and Britain's Prime Minister Gordon Brown walk as they hold a news conference at the G20 Summit in the Pittsburgh Convention Center in Pittsburgh, Pennsylvania, September 25, 2009.  REUTERS/Jacques Witt/Pool    (UNITED STATES)   By Sumeet Desai and Chris Buckley
   PITTSBURGH, Sept 25 (Reuters) – The Group of 20 will become the forum for global economic management, giving rising powers such as China more clout, and roll out tougher rules on bank capital by the end of 2012, a draft communique said on Friday. (more…)

G20 urges banks to muscle up on capital by 2012-draft

France's President Nicolas Sarkozy (L) and his wife Carla Bruni-Sarkozy (2nd R) stand with U.S. President Barack Obama and first lady Michelle Obama as they arrive at the Phipps Conservatory for an opening reception and working dinner for heads of delegation at the Pittsburgh G20 Summit in Pittsburgh, Pennsylvania, September 24, 2009.     REUTERS/Philippe Wojazer (UNITED STATES POLITICS BUSINESS) By Kevin Drawbaugh
PITTSBURGH, Sept 25 (Reuters) – Banks would have to bulk up on capital and slim down on bonuses under a conditioning plan recommended on Friday at the G20 summit by world leaders seeking to avert future financial crises.

Whether member nations of the international body get with the program remains to be seen. The G20 has no lawmaking power, but it sets the tone for institutions that do. (more…)

Cautious China backs G20 coordination; EU proposes bank rules

President of the European Commission Jose Manuel Barosso speaks during a news conference in Warsaw April 30, 2009. By Simon Rabinovitch and John O’Donnell
BEIJING/BRUSSELS, Sept 23 (Reuters) – China offered some support on Wednesday to U.S. plans to build a more balanced global economy, as world leaders seek to agree ways to nurture a tentative recovery and prevent future crises.
The European Union unveiled its blueprint for an overhaul of the way banks and financial markets are policed, with plans for a banking super-watchdog and a pan-European supervisor that it hopes can be replicated on the global stage.

(more…)

EU to support stimulus, push on trade talks at G20

Jean-Pierre Jouyet, head of French market watchdog AMF, is seen in this file photo taken May 18, 2007. REUTERS/Benoit Tessier (FRANCE) By Jan Strupczewski
BRUSSELS, Sept 16 (Reuters) – The European Union will support maintaining policies that poured trillions of dollars into economies and call on a G20 meeting for progress on trade talks to help boost a recovery, a draft policy document said.

(more…)

U.S. bank “super-cop” idea gains support in Senate

By Karey Wutkowski
WASHINGTON, Sept 9 (Reuters) – Decreasing the number of U.S. agencies that police banks is an idea gaining momentum in Congress, even though bolder efforts to rip up the overall financial regulatory system and start fresh have stalled.

(more…)

Obama team asks Congress to combine bank regulators

By David Lawder and Patrick Rucker
WASHINGTON, July 23 (Reuters) – The U.S. Treasury Department on Thursday sent Congress a plan that would consolidate two federal bank regulators in a move it said would help prevent lenders from seeking the loosest oversight. (more…)

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