Financial Regulatory Forum

PREVIEW-Final act begins in U.S. Congress on Wall St reform

By Kevin Drawbaugh

WASHINGTON, June 7 (Reuters) – Negotiators from the U.S. Senate and House will begin meeting this week to craft a final Wall Street reform bill, with banks facing changes that threaten their profits, if not their business models.

Some congressional Democrats want to fashion a bill that forces a basic banking industry restructuring, but leaders will have to balance that agenda against the need to forge compromise legislation that retains some Republican support.

Analysts are expecting that fundamental restructuring will be avoided, “This bill is more about profitability and less about viability. That means the legislation will hurt the banking sector, but it will not sink it,” said Jaret Seiberg, a policy analyst at investment firm Concept Capital.

The delicate task of crafting a winning compromise will fall to Representative Barney Frank, who will chair the “conference committee” getting under way in a few days, and Senator Christopher Dodd, a consensus builder who will lead the Senate negotiating team.

Both lawmakers are old-school liberal Democrats with more than 60 years on Capitol Hill between them. They will need all of that experience to finish up a legislative project that is at the top of President Barack Obama’s priority list.

FACTBOX – How does the EU plan to shake up financial services?

BRUSSELS, April 7 (Reuters) – The European Union (EU) is embarking on an overhaul of financial services that politicians hope will send bankers back to their roots of no-frills lending to households and business.

Michel Barnier is the EU commissioner in charge of the shake up on regulations ranging from curbs on banker pay to a clampdown on speculators betting on government debt.

Here is a guide to the overhaul:

* One of Barnier’s priorities is writing a rule book for trading derivatives, a financial instrument whose value is linked to an asset such as a government bond or currency.

U.S. derivatives market agrees to more transparency – NY Fed

    NEW YORK, Jan 14 (Reuters) – Big players in the $450 trillion derivatives markets agreed to increase transparency and expand the volume and type of contracts they route to central counterparties, the New York Federal Reserve said on Thursday. (more…)

Barclays says cooperating with India regulator on derivatives

    MUMBAI, Dec 10 (Reuters) – Barclays <BARC.L> said on Thursday it was cooperating with the Securities and Exchange Board of India (SEBI), a day after the Indian regulator barred the British bank from transacting new offshore derivative instruments. (more…)

ANALYSIS-Execs say US, EU swaps reforms bold but need work

    By Jonathan Spicer
   CHICAGO, Oct 22 (Reuters) – Exchange and clearinghouse operators, walking a fine line between regulators and customers, said this week new government plans to revamp global derivatives trading are bold but in need of serious revisions. (more…)

Draft US bill frees some from derivatives clearing

REGULATION-SUMMIT/   By Kevin Drawbaugh
   WASHINGTON, Oct 5 (Reuters) – Firms ranging from airlines to agribusiness would be exempt from new rules on compulsory clearing of derivatives transactions under a bill in Congress aimed at tightening oversight of the financial system. (more…)

UK, oil groups to meet on U.S. regulation pressure

Fuel tanker in Britain (file) By Christopher Johnson
LONDON, Aug 4 (Reuters) – Britain’s financial watchdog and the UK Treasury will meet oil industry representatives on Wednesday in response to U.S. pressure for more regulation of commodities markets. (more…)