LONDON (Reuters) – European Union rules to shield taxpayers from having to rescue ailing banks should be applied flexibly because of broader economic imperatives highlighted by the latest Greek rescue package, analysts and lawyers say.
That flexibility may mean that European taxpayers cannot be given cast-iron guarantees that they will not be called upon again to bail out banks as during the financial crisis.
LONDON, Aug 20 (Reuters) – Banks would in future need to
declare publicly that their pooled debt is of top quality in
order to benefit from lower capital charges, according to a
draft European Union law seen by Reuters that is raising
concerns from some investors.
The proposal is significant because pooled debt, which
merges masses of loans like mortgages into asset-backed
securities (ABS), was at the heart of the global financial
crisis. ABS based on poor-quality U.S. home loans became
untradable in 2007, triggering a string of bank failures.
LONDON (Reuters) – Global regulators and central bankers
have proposed a common tagging system for off-exchange
derivatives transactions to spot more easily which banks could
be at risk in a market crisis.
Regulators were left in the dark when Lehman Brothers went
bust in September 2008, unable to see who was on the other side
of the U.S. bank’s derivatives transactions, adding to
uncertainty that fuelled a global markets meltdown.
LONDON, July 30 (Reuters) – Global work by regulators on
whether big asset managers should face tougher rules because of
their size has been put on hold to focus on their ability to
cope in volatile markets, a task force set up for the Group of
20 leading economies said on Thursday.
The Financial Stability Board (FSB) had proposed a method
for identifying large asset managers that could then face extra
scrutiny, a move which has been fiercely opposed by the sector.
LONDON (Reuters) – Hedge funds from Guernsey, Jersey and Switzerland should be allowed to serve investors across the 28 country European Union, the bloc’s securities watchdog said on Thursday.
The European Securities and Markets Authority (ESMA) also said it has not yet reached a view on whether hedge funds and other alternative investment funds from the United States should be given a “passport”.
LONDON, July 29 (Reuters) – Asking outside auditors to vouch
for the accuracy of a bank’s key measure of health could help
restore investor trust in the sector, a London-based accounting
body said on Wednesday.
The Institute of Chartered Accountants in England and Wales
(ICAEW) kicked off a public consultation on how accountants
could check on bank capital ratios, a measure of capital a
lender holds in relation to risky assets such as loans.
LONDON, July 29 (Reuters) – Banks are failing to meet new
standards for compiling market benchmarks despite the record
fines imposed over the Libor and foreign exchange scandals, a
review by Britain’s financial watchdog said on Wednesday.
Lenders have been fined billions of dollars by regulators
for attempting to rig the London interbank offered rate, or
Libor, an interest rate benchmark used to price an estimated
$450 trillion of financial contracts worldwide.
LONDON (Reuters) – Banks must make painful adjustments to how they operate in a post-crisis world and not rely on policymakers turning back the overall “regulatory dial”, Bank of England Deputy Governor Jon Cunliffe said on Tuesday.
Asking whether regulators have gone too far in imposing tougher capital requirements after the 2007-09 financial crisis, Cunliffe said some reforms will need “fine tuning”.
LONDON, July 28 (Reuters) – Rules will soon be finalised
forcing the world’s top banks to hold enough liquid assets to
cover between 16 and 20 percent of their liabilities, after
industry lobbying failed to persuade regulators to relax the
The Financial Stability Board (FSB) coordinates financial
regulation for the Group of 20 economies and will finalise the
rules by the end of September for endorsement by G20 leaders in
LONDON, July 27 (Reuters) – Payday lender Cash Genie has
agreed to put aside 20 million pounds ($31 million) to
compensate more than 92,000 customers for unfair practices,
Britain’s Financial Conduct Authority said on Monday.
The watchdog said Cash Genie, part of Ariste Holding
Limited, had agreed to provide 10 million pounds in redress
after having voluntarily written off 10.3 million pounds of fees