Financial Regulatory Forum

U.S. asks banks to expand foreclosure prevention

House for sale WASHINGTON, July 10 (Reuters) – The Obama administration is asking the largest mortgage finance companies to quicken the pace of modifying home loans and so help more troubled borrowers avoid foreclosure. The largest 25 mortgage servicers should appoint a special liaison officer to work directly with government officials who are overseeing the program meant to save as many as 4 million borrowers from foreclosure. (more…)

UK’s FSA says new liquidity rules hinge on economy

   By Kirstin Ridley
   LONDON, July 9 (Reuters) – Britain’s top financial watchdog said on Thursday it was on track for introducing tough new liquidity rules for banks from the fourth quarter, but full implementation would depend on the economic climate.
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UK’s FSA to expose banks’ complaint handling flaws

   LONDON, July 9 (Reuters) – Britain’s financial regulator plans to expose any failings in the way banks and insurers handle complaints by forcing them to reveal how many gripes they receive and how quickly they are dealt with.
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Iceland eyes deals with creditors of failed banks

A branch of Iceland's Glitnir Bank    By Omar Valdimarsson
   REYKJAVIK, July 8 (Reuters) – Iceland’s government hopes to secure a deal next week with creditors of its failed banks which would allow it to capitalise its new banks and start to compensate foreign lenders for their massive losses.  A deal would likely come ahead of a July 17 deadline to finalise the capitalisation of the so-called “new banks” which were created following the country’s financial meltdown, Indridi Thorlaksson, Permanent Secretary at the Ministry of Finance, told Reuters on Wednesday. (more…)

Latvia seeks debt write-downs in home-loan restructure plan

   By Patrick Lannin and Sven Nordenstam
   RIGA/STOCKHOLM, July 8 (Reuters) – Latvia wants banks to write off 10 percent of the debt of people who enter a planned scheme to restructure problem loans, the prime minister said on Wednesday, but banks said volumes concerned would be small. (more…)

Britain sets out plans to tighten bank regulation

Britain's Chancellor of the Exchequer Alistair Darling    By Huw Jones
   LONDON, July 8 (Reuters) – Britain will tighten up how it supervises banks, scrutinise bonuses paid to their employees and punish misconduct harder as it tries to prevent a re-run of the credit crunch, the government said on Wednesday.

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EU ministers agree on flexible bank capital rules

European Monetary Affairs Commissioner Joaquin Almunia and Sweden's Finance Minister Anders Borg (R)    By Dave Graham and Marcin Grajewski
   BRUSSELS, July 7 (Reuters) – European Union finance ministers agreed in principle on Tuesday to make capital rules for banks more flexible to reduce their likelihood of worsening boom-and-bust cycles in the economy.  The ministers also raised doubts about a German proposal to relax temporarily the Basel II rules on capital requirements for banks to boost lending and accelerate a recovery from the worst economic crisis since World War Two. (more…)

EU to unveil new banking reforms in October-FT

    LONDON, July 6 (Reuters) – New European Union laws designed to force banks to strengthen capital buffers will be unveiled in October, part of a regulatory drive stop a repeat of the global financial crisis, the Financial Times reported on Tuesday.
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World policymakers urge banks to lend, express concern

                World Bank President Robert Zoellick                         By Laura Macinnia and Patricia Zengerle
  (GENEVA/SHINGTON, July 6 (Reuters) – World economic leaders called on commercial banks on Monday to step up lending to revive an economy pitched into recession by failure of the global financial system.  The World Bank, in a letter to Group of Eight nations due to meet this week, said interventions by central banks and governments appeared to have “broken the fall in the global economy,” but 2009 remained a dangerous year. 

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UK, France seek ways to curb oil price volatility, end tax havens

  By Estelle Shirbon 
  EVIAN, France, July 6 (Reuters) – France and Britain called for action to curtail oil price volatility on Monday as part of a move towards tougher global governance to prevent a return to economic problems that existed before the financial crisis.   Speaking at a Franco-British summit ahead of a meeting of G8 leaders in Italy this week, British Prime Minister Gordon Brown also said that tax havens should accelerate their reforms towards greater transparency for the good of the world economy. (more…)

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