George's Feed
Jan 16, 2013

Mervyn King exit may detoxify BoE/bank relations

(Corrects date in final paragraph)

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own)

By George Hay

LONDON, Jan 16 (Reuters Breakingviews) – Mervyn King’s
departure from the Bank of England could well detoxify relations
between the UK central bank and its domestic lenders. The
financial sector and its regulators shouldn’t be best buddies.
But bankers whisper that the outgoing governor’s tough
regulatory stance, seen once again in front of UK lawmakers on
Jan. 15, partly reflects his own previous mistakes.

Jan 15, 2013
via Breakingviews

Regulators must grab chance to bin EU capital ruse

Photo

By George Hay

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Regulators must seize the chance to ditch one of euro zone banks’ more absurd regulatory wheezes. In the first half of 2013, the Basel Committee on Banking Supervision will publish a comprehensive study assessing how global banks risk-weight their assets. The rule-setter should use its platform to name and shame the national regulators and lenders that are still getting away with holding no capital against their euro zone sovereign debt.

Jan 7, 2013
via Breakingviews

Liquidity U-turn is sell signal for bank shares

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By George Hay

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Global regulators’ great liquidity U-turn is a sell signal for banks. That’s not the way investors chose to look at it on Jan. 7, as the share prices of global lenders rallied. Admittedly, the watering down of rules intended to protect banks against deposit-runs will mean higher short-term profit. But the economic slowdown that has caused formerly macho regulators to roll over is a more enduring negative force.

Jan 4, 2013
via Breakingviews

Bank liquidity reform better delayed than diluted

Photo

By George Hay

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Delay is better than dilution for bank liquidity reform. Global regulators who make up the Basel Committee on Banking Supervision are set to allow lenders more time to comply with one of the cornerstones of the critically important “Basel III” reforms to stop taxpayers having to bail out the financial sector. In this case, massaging the deadline is the lesser of two evils.

Jan 4, 2013

Too early to call UK bank stimulus a game changer

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own)

By George Hay

LONDON, Jan 4 (Reuters Breakingviews) – UK banks are having
a happy new year. Fourth quarter data suggests that domestic
lenders are making much more credit available, which in turn
implies that the Bank of England’s Funding for Lending Scheme

Dec 28, 2012

Breakingviews-EU drops the ball on Monte dei Paschi bailout

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own)

By George Hay

LONDON, Dec 28 (Reuters Breakingviews) – The European
Commission seems to be losing its bite. Since the 2008 financial
crisis, the legislative arm of the European Union has developed
a fearsome reputation for forcing bailed-out banks into savage
restructurings as penance for accepting state aid. Its kid-glove
treatment of Banca Monte dei Paschi (BMPS.MI: Quote, Profile, Research), however, looks
like quite a reversal.

Dec 21, 2012
via Breakingviews

Diamond Bob will bounce back in 2013

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By George Hay

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Few executives had a worse 2012 than Bob Diamond. The ex-Barclays chief executive started the year running one of the few UK banks without a big government stake, and spearheading a drive to make banks better citizens. He ends it having been forced out following a perfect storm of shareholder revolts, regulatory ire and, most notoriously, Libor.

Dec 21, 2012

BREAKINGVIEWS:Diamond Bob will bounce back in 2013

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)

By George Hay

LONDON, Dec 21 (Reuters Breakingviews) – Few executives had
a worse 2012 than Bob Diamond. The ex-Barclays (BARC.L: Quote, Profile, Research) chief
executive started the year running one of the few UK banks
without a big government stake, and spearheading a drive to make
banks better citizens. He ends it having been forced out
following a perfect storm of shareholder revolts, regulatory ire
and, most notoriously, Libor.

Dec 20, 2012

Spain’s exit plan for duff banks better than UK’s

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)

By George Hay

LONDON, Dec 20 (Reuters Breakingviews) – Spain’s exit plan
for its worst banks looks better than the UK’s. Madrid’s
confirmation on Dec. 20 of a further 1.9 billion euros for
Caja3, Banco Mare Nostrum, Banco Ceiss and Liberbank brings the
country’s total bank bailout costs to almost 39 billion euros.
But setting a deadline for returning the banks to the private
sector is the right move.

Dec 14, 2012
via Breakingviews

Other banks may take most of the UBS Libor pain

Photo

By George Hay

The author is a Reuters Breakingviews columnist. The opinions expressed are his own

UBS is next up in the Libor stocks, and the Swiss bank’s investors will be nervous. When Barclays became the first bank to admit fiddling the London interbank offered rate back in June, the ensuing reputational firestorm forced out both its chairman and chief executive. But even though UBS’s fine is expected to be more than double Barclays’ $450 million hit, the fallout could still be worse for other banks.

    • About George

      "George Hay writes about the banking and property sectors. He joined from Thomson Financial News, where he was a companies correspondent. Before that he worked at United Business Media, where he was news editor of Building Magazine. He has a first in English Literature from Edinburgh University, and was nominated in two categories at the 2009 Business Journalist of the Year Awards."
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