(Thomson Reuters Regulatory Intelligence) – The U.S. Financial Stability Oversight Council’s recent review of the asset management industry seemed a rather routine piece of regulatory work. But the review released last week comes in a charged atmosphere for the council because of a court decision that rescinded its designation of insurer MetLife as a systemically important financial institution, or SIFI. (more…)
Financial Regulatory Forum
By Lawrence Hsieh, Practical Law for Regulatory Intelligence
(Thomson Reuters Regulatory Intelligence) – There is a general consensus that the next financial crisis will follow the familiar arc of bubble, falling asset values, a run, credit/liquidity crunch, finger-pointing, new regulation, financial innovation, and unintended consequences for both regulation and innovation. There is less consensus about the where, when, how, and why.
A U.S. federal judge rescinded a government designation of MetLife as “too big to fail” and subject to increased regulatory oversight.
By Scott McCleskey for Thomson Reuters,
NEW YORK – Elections, like other forms of reality TV, provide moments of great entertainment but are often short of actual reality. It seems both parties this year need to have (at least) one candidate who captures airtime and ink with populist ideas unmoored from the practical world of getting things done. Democrats, not to be out-Trumped by Republicans, feature Bernie Sanders and his platform for Wall Street reform.
Critics of the the Financial Stability Oversight Council’s designation of nonbanks as systemically important got a chance last month to point to what they viewed as shortcomings in its approach, while also offering clues for possible improvements, during a U.S. Senate hearing on the issue.
In an effort to streamline banks’ regulatory data through increased transparency, and make them more comparable and consistent across the board, the Basel Committee on Banking Supervision has publishedrevised standards on disclosures.
By Bora Yagiz, Compliance Complete
NEW YORK, Aug. 15, 2014 (Thomson Reuters Accelus) – Three major U.S. regulatory agencies have eased requirements under the advanced approach risk-based capital rules by removing a key requirement concerning guarantees provided by counterparties eligible for recognition as credit risk mitigants.
Canadian banking outlook downgraded over ‘bail-in’ move, adding to recent financial stability concerns
By Daniel Seleanu, Compliance Complete
TORONTO, July 17, 2014 (Thomson Reuters Accelus) – In yet another worrying sign for Canada’s financial sector, Moody’s Investors Service has lowered its outlook for the Canadian banking system from “stable” to “negative” over uncertainty about government willingness to bail out banks during a crisis. It follows a pair of recent warnings issued by the Bank of Canada (BOC) and the Bank for International Settlements (BIS), both of which highlighted the growing risk of stress posed by runaway consumer debt and property prices.
By Daniel Seleanu, Compliance Complete
TORONTO, July 1, 2014 (Thomson Reuters Accelus) – Canada’s overheated housing market represents a significant risk to the stability of its financial system, the country’s central bank has warned.
By Henry Engler, Compliance Complete
NEW YORK, Dec. 18 (Thomson Reuters Accelus) – The Federal Deposit Insurance Corporation, under mounting pressure from the industry for greater clarity, announced on Tuesday additional details on its “Single Point of Entry” resolution plans for failed banks.
The basic concept is to close the holding company of a failed firm, and transfer its healthy subsidiaries into a new bridge institution that could be managed while the resolution of the defunct company proceeds. Shareholders would be wiped out under the plan, while unsecured creditors could seek equity claims as a means to recapitalize the new institution. Should the subsidiaries require liquidity to operate, they would borrow from the bridge, which in turn may borrow from an “orderly liquidation fund” funded by the U.S. Treasury. (more…)