Regulation Correspondent, Europe
Huw's Feed
Apr 15, 2014

Regulators ease rule curbing banks’ exposures to customers

LONDON (Reuters) – Global regulators have eased a new rule limiting how much business a bank can undertake with a single customer, as they try to minimize the risk of fallout from a counterparty going bust without imposing excessive burdens on financial firms.

Regulators want to avoid the damage to financial stability an insolvency can wreak, as seen with the collapse of U.S. bank Lehman Brothers in 2008 which led to taxpayers bailing out several lenders.

Apr 13, 2014

EU to approve bank rules before May election slows legislative machine

LONDON (Reuters) – The European Union will sign off on a slew of major reforms this week to allow failing banks to be wound down without public money, clearing its desk before elections in May that may lead to a slower pace of legislation.

This week is the final plenary session of the European Parliament before it breaks up ahead of the vote in May.

Apr 11, 2014

ECB, BoE say public intervention needed to revive stigmatised debt market

LONDON, April 11 (Reuters) – The European Central Bank and
Bank of England said public intervention to kick-start the
shrinking market for packaged debt is inevitable, and it accused
global regulators of taking too tough a stance on the sector.

The two banks said in a joint paper that the asset-backed
securities (ABS) market, which bundles loans into bonds, is
impaired and unable to play a role in funding the economy.

Apr 11, 2014

ECB platform, EU law to ‘revolutionise’ securities settlement

LONDON (Reuters) – The European Central Bank’s new platform for settling trillions of euros of stock and bond trades will trigger a shake-up in the business, the head of one of Europe’s biggest settlement houses said.

The combination of the new platform and new European Union law will inevitably lead to consolidation, said Jeff Tessler, the chief executive of Clearstream, Deutsche Boerse’s (DB1Gn.DE: Quote, Profile, Research) settlement arm. He expects only three or four big settlement houses offering cross-border services will be left standing.

Apr 10, 2014

Basel eases bank capital rule for derivatives clearing

LONDON (Reuters) – Banks will not have to hold as much capital as feared to cover trading losses, global regulators said on Thursday in their latest easing of rules to avoid crimping economic recovery.

The Basel Committee of banking supervisors from nearly 30 countries published its finalized rule on how much capital banks must set aside to cover trading positions at clearing houses from 2017.

Apr 10, 2014

FCA threatens tougher action on bank overdraft fees

LONDON (Reuters) – Britain’s financial watchdog may impose changes in how banks treat overdrawn customers after its research showed people are paying too much when they go into the red.

Banking fees have become politically charged, with politicians and the government keen for more competition on the high street after a series of mis-selling scandals in financial products. There is also concern over sky-high interest rates charged by payday loan companies.

Apr 10, 2014

UK watchdog threatens tougher action on bank overdraft fees

LONDON, April 10 (Reuters) – Britain’s financial watchdog
may impose changes in how banks treat overdrawn customers after
its research showed people are paying too much when they go into
the red.

Banking fees have become politically charged, with lawmakers
and the government keen for more competition on the high street
after a series of mis-selling scandals in financial products.
There is also concern over sky-high interest rates charged by
payday loan companies.

Apr 9, 2014

European policymakers seek to reshape bundled debt market

LONDON, April 9 (Reuters) – European policymakers are
drawing up plans to revive the market for repackaged debt in a
bid to lure investors back to a sector that was at the heart of
the worst financial crisis in a generation.

Securitisation is seen as key to helping banks fund
themselves and the economy but the market has shrivelled since
packages of high-risk U.S. home loans pooled to create bonds
imploded in 2007 when the underlying assets proved to be
bankrupt.

Apr 9, 2014

EU proposes bigger shareholder say over executive pay

LONDON (Reuters) – Listed companies across the European Union must get shareholder approval on pay policy for top executives under a draft European Union law aimed at making firms more answerable to their owners.

EU financial services chief Michel Barnier has proposed toughening up the 28-country bloc’s law on shareholder rights to end “short-termism”, though stopping short of capping pay in the way he has separately done for banker bonuses.

Apr 9, 2014

FCA launches inquiry into insurance review announcement

LONDON (Reuters) – The Financial Conduct Authority (FCA) has appointed an independent lawyer to lead an inquiry into how it prematurely disclosed details of a review of the insurance industry, sending shares in insurance firms plunging last month.

The move follows complaints from the insurance industry body, which called on the FCA to learn lessons from the incident, but stopped short of demanding the removal of senior staff.

    • About Huw

      "Huw is based in London and covers European regulatory issues and global rulemaking bodies such as the G20, Financial Stability Board, IOSCO, IASB and the Basel Committee. He has covered EU regulation in Brussels, the emergence pan-European stock markets, and has also been a Wall Street reporter in New York."
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