Financial Regulatory Forum

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.

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Britain’s top retail banks set for shake-up

  LONDON, Nov 3 (Reuters) – Britain is set to announce on Tuesday a long-awaited deal with its bailed-out banks, including a record rights issue for Lloyds Banking Group and hefty disposals for Royal Bank of Scotland to appease the EU competition regulator and boost competition.

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US Treasury to say 3 more funds to buy toxic assets

WASHINGTON, Oct 5 (Reuters) – The U.S. Treasury Department will announce on Monday that three more funds have met requirements to get government financing that will let them begin purchases of banks’ so-called toxic assets.

Treasury said last Wednesday, which was Sept. 30, that Invesco Ltd and Trust Company of the West, or TCW, were the first of nine public-private investment funds to raise the necessary capital to launch the program for buying toxic assets.

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World Bank arm to work with private sector to buy toxic assets

Lars H. Thunell, Executive Vice-President and Chief Executive Officer, International Finance Corporation (IFC) attends a session at the World Economic Forum (WEF) in Davos January 28, 2009. (file photo) By Lesley Wroughton
ISTANBUL, Oct 3 (Reuters) – The head of the International Finance Corp said on Saturday that the group plans to work with private equity funds, debt servicing companies and major banks to soak up toxic assets held by banks in emerging markets.

The IFC, the World Bank’s private-sector lender, said this week it would contribute up to $1.5 billion toward a proposed $5 billion global scheme that would invest in or mobilize investment to buy up distressed assets.

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U.S. Treasury launches first toxic asset funds

U.S. Treasury launches first toxic asset funds
A "For Sale- Bank Owned" sign sits in front of a home in Pontiac, Michigan June 19, 2009. The decline of U.S. automakers has for years affected those who live in Pontiac. Now the city's dead look set to feel the pain as well. Mayor Clarence Phillips says "we can no longer afford" the $400,000 the city spends each year on the upkeep of cemeteries in light of fresh local plant closures and job losses at General Motors Corp, the largest employer and taxpayer in the city of 66,000. Picture taken June 19, 2009. REUTERS/Rebecca Cook (UNITED STATES TRANSPORT BUSINESS EMPLOYMENT)    WASHINGTON, Sept 30 (Reuters) – The first two funds involved in the government’s plan to purchase toxic assets have raised about $1.13 billion, the U.S. Treasury Department said on Wednesday. (more…)

U.S. FDIC picks winner for test of toxic-loan plan

By Karey Wutkowski
WASHINGTON, Sept 16 (Reuters) – The Federal Deposit Insurance Corp has selected a Texas-based mortgage servicer as the first buyer in a test of its program aimed at cleansing toxic loans from banks’ balance sheets.
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UBS has no plans to buy back toxic assets from SNB

UBS/TAX   ZURICH, Aug 27 (Reuters) – Swiss bank UBS currently has no plans to buy back toxic assets which were transferred to the country’s central bank last autumn as part of a government rescue package, a spokeswoman said on Thursday. 
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U.S. bailout panel: toxic assets may need more support

toxic   By David Lawder
   WASHINGTON, Aug 11 (Reuters) – The U.S. Treasury Department should consider expanding programs to cleanse troubled assets from bank balance sheets if current efforts fail to restart markets or if economic conditions worsen, a U.S. bailout watchdog panel said on Tuesday. 
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U.S. FDIC launches test of toxic asset sale program

WASHINGTON, July 31 (Reuters) – The U.S. Federal Deposit Insurance Corp is launching the first test of its Legacy Loans Program to help banks rid their balance sheets of toxic assets so they can raise new capital and increase lending, the agency said on Friday.
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