Financial Regulatory Forum

ANALYSIS – UK bank bonus limits depend on global reforms

July 22, 2009

By Kirstin Ridley
LONDON, July 22 (Reuters) – Regulatory attempts to stamp out long-term guaranteed bank bonuses in Britain could founder unless they dovetail with global reforms to curb the return of a culture of risk-taking that has destabilised economies. (more…)

Obama hits out at Wall Street banks

July 21, 2009

U.S. President Barack Obama    WASHINGTON, July 20 (Reuters) – U.S. President Barack Obama said on Monday that Wall Street banks had failed to show remorse for the “wild risks” that triggered a financial meltdown and helped to push the United States into recession.

Iceland strikes deal to clean up banking mess

July 20, 2009

STOCKHOLM, July 20 (Reuters) – Iceland took a step towards clearing the debris of its financial meltdown on Monday, unveiling a deal with creditors of its failed banks and plans to capitalise the new ones. (more…)

US Congress gets pay bill as bank bonuses swell

July 17, 2009

   By Kevin Drawbaugh
   WASHINGTON, July 16 (Reuters) – With the smell of fat bonus checks again wafting down Wall Street, the Obama administration and Democrats in Congress on Thursday moved closer to a clampdown on U.S. corporate executive pay.

Aided banks may face asset sale under new EU rules

July 16, 2009

European Commissioner for Competition Neelie Kroes    By Foo Yun Chee and Huw Jones
   BRUSSELS/LONDON, July 16 (Reuters) – Crisis-hit banks seeking European Union regulatory approval for state aid may have to sell assets and curb their market and geographical expansion, according to a draft EU document on bank restructuring rules. 

INSTANT VIEW-Reaction to UK bank governance proposals

July 16, 2009

Sir David Walker    LONDON, July 16 (Reuters) – Following is recation to a UK government-sponsored review of the way the UK banking system is run and governed.
   David Walker, a former chairman of Morgan Stanley bank’s international unit, on Thursday published 39 recommendations for changes in the way banks are run, from pay policies to selecting board members, in a bid to apply lessons from the credit crunch.

New US consumer agency won’t cause bank fee hikes

July 14, 2009

   WASHINGTON, July 13 (Reuters) – Banks will not have to pay higher supervisory fees if the Obama administration’s proposed new Consumer Financial Protection Agency gets off the ground and they will not have to seek the regulator’s pre-approval for “plain-vanilla” products, an administration official said on Monday.

ANALYSIS-U.S. banks prepare to battle over OTC derivatives

July 14, 2009

U.S. Representative Barney Frank By Steve Eder and Rachelle Younglai
NEW YORK/WASHINGTON, July 13 (Reuters) – The banking industry is gearing up for a battle over the lucrative derivatives market, but will have to fight hard to head off a crackdown by regulators.
Calls to regulate the $450 trillion private market — long seen as the Wild West of the financial services sector — have been building for months. Policymakers were caught off guard when a type of derivative — credit default swaps — nearly toppled insurer American International Group Inc and global financial markets. (more…)

EU drafts sanctions for risky bonuses, tighter capital rules

July 13, 2009

Flags at EU Parliament
By Huw Jones
LONDON/BRUSSELS, July 13 (Reuters) – The European Union on Monday unveiled a new law that punishes banks who encourage too much risk-taking with their policies on pay, in an effort to put an end to the practices blamed for the credit crunch.
A draft law published by the European Commission tightens EU rules on bank capital and requires banks to improve disclosure of the holdings in securitised products, bidding to apply lessons from the worst financial crisis since the 1930s. (more…)

Basel panel sets higher capital rules for bank trading books

July 13, 2009

BASEL, Switzerland, July 13 (Reuters) – The Basel Committee published the final version on Monday of its new rules that will force banks to tie up more capital to offset trading book risks from the end of 2010. (more…)