Financial Regulatory Forum

Germany readying rescue tools for big banks – Finance Ministry

BERLIN, Jan 19 (Reuters) – The German government is preparing new measures for the rescue of “systemically relevant” banks should they land in trouble, Finance Minister Wolfgang Schaeuble said on Tuesday.

Schaeuble noted that the ruling parties in the centre-right government had said in their coalition agreement they would prepare such measures and added: “The government will present a corresponding set of instruments.”

He said the financial crisis had shown existing instruments to deal with struggling big banks were insufficient.

“So there is a need to have instruments ready, including for systemically relevant banks, that allow an orderly reorganisation in the instance of a crisis and involve stakeholders and creditors appropriately in any rescue,” Schaeuble told the Bundestag lower house of parliament.

(Editing by Patrick Graham) ((paul.carrel@reuters.com; +49 30 2888 5210; Reuters Messaging: paul.carrel.reuters.com@reuters.net))

ANALYSIS-After hardball, Greece gets EU solidarity pledges

EU High Representative for Foreign Affairs Catherine Ashton (L) poses with Greek Prime Minister George Papandreou during a European Union leaders summit in Brussels December 10, 2009.  REUTERS/Yves Herman By Brian Love, European Economics Correspondent

PARIS, Dec 11 (Reuters) – Reassuring noises from France and Germany suggest Greece can ultimately count on help from its euro zone partners if its debt problems get out of hand — though its partners were content to see financial markets scare Athens for a while.

As Greek bond spreads ballooned early this week, officials in major European Union governments indirectly fuelled the panic by refraining from making clear pledges of support for Greece.

Most of the officials’ public statements focused on urging Athens to face up to its problems and, like Ireland, take drastic steps such as public spending cuts to reduce its budget deficit and prevent its debt from becoming unserviceable.

Banks expected to swallow most of new UK bonus tax

By Steve Slater

LONDON, Dec 11 (Reuters) – Banks are likely to swallow the bulk of the cost of a shock UK tax on bonuses unveiled this week, rather than pass it on to staff or find loopholes, as more countries join the clampdown on payouts, industry experts and sources said.

Britain slapped a special 50 percent tax on bank bonuses on Wednesday, provoking outrage across the industry and raising fears that London will lose talented staff and business to rival financial centres.

But France looks set to follow with its own one-off tax and Germany and other countries may clamp down on the free-wheeling bonus culture that critics say fueled the financial crisis. If more follow, it could reduce the impact on London and also prompt banks to absorb most of the cost, experts said.

Largest German banks to enforce bonus rules in 2009

CEO of Deutsche Bank Josef Ackermann holds his speech during the Euro Finance Week in Frankfurt November 20, 2009. REUTERS/Ralph Orlowski By Philipp Halstrick and Edward Taylor

FRANKFURT, Dec 10 (Reuters) – Germany’s largest financial companies have agreed to enforce the Group of 20 recommendations on bonus rules in 2009, a year before they must, people familiar with the matter said on Thursday.

German regulators had demanded that banks and insurers such as Deutsche Bank adopt the recommendations from 2010.

The G20 rules which were drawn up in the wake of the financial crisis require bonus payouts to be deferred over time, a move designed to discourage short-term risk taking.

Germany’s Merkel defends tax-cut plan from attacks

Leader of the German Free Democrats (FDP) Guido Westerwelle and German Chancellor and head of the conservative Christian Democratic Union (CDU) Angela Merkel chat as they sign the agreement for a coalition government during a contract signing ceremony in Berlin October 26, 2009. REUTERS/Fabrizio Bensch (GERMANY)   By Madeline Chambers
BERLIN, Oct 26 (Reuters) – German Chancellor Angela Merkel defended on Monday her plans to pursue billions of euros in tax relief in the face of rising debt, saying the tough savings course favoured by her critics would damage a fragile recovery.

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German SoFFin chair concern on credit crunch-paper

soffin   FRANKFURT, Oct 10 (Reuters) – The chair of Germany’s financial stabilisation fund SoFFin is concerned about a credit crunch for German companies as banks are forced to shore up their capital base to offset potential problem loans. (more…)

German coalition agrees Bundesbank to take over bank supervision

By Matthias Sobolewski
BERLIN, Oct 8 (Reuters) – Chancellor Angela Merkel’s conservatives and their Free Democrat allies have agreed the basics of an overhaul of Germany’s banking supervision framework, participants in coalition talks said on Thursday.

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WestLB to shift 87 billion euros to first German bad bank

The headquarters of WestLB is pictured before the annual news conference in Duesseldorf March 26, 2009. REUTERS/Ina Fassbender (GERMANY BUSINESS HEADSHOT) By Jonathan Gould and Matthias Inverardi
FRANKFURT/DUESSELDORF, Oct 7 (Reuters) – Germany’s WestLB will jettison at least 87 billion euros ($128 billion) in risky assets to the country’s first “bad bank”, a move other lenders are likely to follow.

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German bank crisis not over -rescue fund head

Hannes Rehm, new head of steering committee for Financial Market Stabilisation Fund (SoFFin), leaves his office after a photo call in Frankfurt February 3, 2009. REUTERS/Alex Grimm (GERMANY)    HAMBURG, Germany, Oct 7 (Reuters) – The financial sector  faces big challenges even after governments intervened massively to prop up tottering banks, the head of Germany’s nearly 500 billion euro ($735 billion) bank rescue fund Soffin warned. (more…)

Germany’s Buba urges caution on bank capital changes

zeitler-2    FRANKFURT, Sept 24 (Reuters) – Regulators mulling changes to bank capital buffers should keep the big picture in mind and not change any rules until the crisis is resolved, Germany’s Bundesbank warned on Thursday.
   Bundesbank Vice-President Franz-Christoph Zeitler said regulators had to keep the impact of the long list of proposed bank reforms in mind. (more…)

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