Financial Regulatory Forum

UK’s Brown wants investigation into Goldman Sachs

   By Adrian Croft
   LONDON, April 18 (Reuters) – Prime Minister Gordon Brown said on Sunday he wanted Britain’s financial watchdog to investigate U.S. bank Goldman Sachs <GS.N> after it was charged with fraud by U.S. regulators. (more…)

Bank reform may have $220 billion global capital hit – analysts

LONDON, Feb 17 (Reuters) – Top global banks will need an extra $221 billion of capital and see annual profits slump by $110 billion if all proposed regulations to reform the industry are brought in, leading analysts said on Wednesday.

If all the initiatives from regulators are implemented it would cut the average return on equity to 5.4 percent from 13.3 percent next year, hurt economic growth and raise costs for bank services, JPMorgan analysts warned.

“The cumulative impact of all the proposed regulation suggests that there is a real risk that we may move from a system that was under regulated to one that is over regulated and that that could cause a significant increase in lending costs and a negative impact on the economy,” Nick O’Donohue, head of research at JPMorgan, said in a research note.

Deutsche Bank bonus-tax bill points to 2 billion pound windfall for UK

Bonus baby

Bonus baby

LONDON/FRANKFURT, Feb 4 (Reuters) – Deutsche Bank has set aside 225 million euros ($312 million) to pay a one-off tax on bonuses in London, signalling Britain will land a hefty windfall from the levy but fall short of some lofty estimates.

Germany’s biggest bank was the first to say how much it will pay the British taxman. Its figure signalled Britain will raise at least 2 billion pounds — or four times early indications — from the controversial levy, based on conservative estimates.

Top-end estimates that the windfall could total over 5 billion pounds look likely to prove too high.

UK government banker quits key role in RBS, Lloyds stake sale

By Steve Slater and Douwe Miedema

LONDON, Jan 11 (Reuters) – The banker tasked with selling Britain’s stakes in Royal Bank of Scotland (RBS) and Lloyds quit in a surprise move on Monday, a potential blow to the government’s hopes of turning a profit on the holdings.

UK Financial Investments, the body that holds Britain’s stakes in the two part-nationalised banks and nationalised Northern Rock, said John Crompton had resigned as head of market investments.

Crompton did not leave as the result of any internal conflict and he will return to the private sector, two people familiar with the matter said. His exit comes after he failed to get the job of chief executive vacated by John Kingman in November.

UK bank bailout cost hits 850 billion sterling – watchdog

banking_landing_page_image By Kirstin Ridley

LONDON, Dec 4 (Reuters) – The price tag for bailing out UK banks has hit 850 billion pounds ($1.4 trillion) but Britain’s spending watchdog says the final cost to taxpayers will not be known for years.


REUTERS SUMMIT – Panmure chief warns against “mad” UK regulation

By Clara Ferreira-Marques
LONDON, Nov 18 (Reuters) – Britain’s excessive regulatory zeal is hitting competitiveness and driving away top talent and innovative firms, as they flee a poorly devised tax regime and “spurious” legislation, one of Britain’s oldest brokerages said.


UK government rejects brokerage complaints over “bullying” by rescued banks

A video grab image shows Britain's City minister Paul Myners speaking at a Treasury Committee in London March 17, 2009.     REUTERS/Parbul TV Via Reuters TV  (BRITAIN BUSINESS POLITICS) LONDON, Nov 17 (Reuters) – Britain’s government has batted away complaints from three top brokerages about “bullying” and unfair competition by bailed-out lenders, telling them to make a virtue of their independence or seek help from the consumer watchdog.


Big-bank containment strategy catches on in US, EU

By Kevin Drawbaugh
WASHINGTON, Nov 3 (Reuters) – The government should be able to restrict the size of financial firms so they do not become “too big to fail,” two key U.S. Democratic lawmakers said on Tuesday, echoing proposals being made in Europe.


EU “cookie-cutter” bank overhaul policy under fire

European Commissioner in charge of Competition Neelie Kroes delivers a speech at a conference on State Aid Private Enforcement in Brussels October 19, 2009. REUTERS/Sebastien Pirlet    By Edward Taylor and Kirstin Ridley
FRANKFURT/LONDON, Nov 3 (Reuters) – Neelie Kroes’s campaign to shrink banks and launch vast asset sales has angered bankers, who accuse the firebrand European competition commissioner of kicking the industry when it’s down.Investment bankers close to some of the bailed-out lenders blame Kroes for undermining attempts to rebuild the once-lucrative industry by forcing massive, near-simultaneous asset sales, while banning acquisitions.


US lawmaker favors curbing size of financial firms

WASHINGTON, Nov. 3 (Reuters) – The government should have the authority to break up or reconstruct financial firms before they become “too big to fail,” a prominent U.S. lawmaker said on Tuesday.