Regulation Correspondent, Europe
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Jul 22, 2014

G20 watchdog orders Libor alternatives by 2016 in benchmark reform

LONDON, July 22 (Reuters) – Global regulators will implement
a twin-track approach to ensuring interest rate benchmarks are
less prone to manipulation, recommending safeguards to the
current system as well as developing alternatives.

Ten banks and brokerages including Barclays and UBS
have paid a total of around $6 billion to date to
settle U.S. and European regulatory allegations that they
manipulated the London Interbank Offered Rate, or Libor, a
benchmark against which around $450 trillion of financial
products from derivatives to home loans are priced worldwide.

Jul 22, 2014

Global watchdog recommends multi-pronged reform of Libor benchmarks

LONDON (Reuters) – Global regulators have proposed a twin-track approach to ensuring that interest rate benchmarks are less prone to manipulation by recommending safeguards to the current system and also by developing alternatives.

Ten banks and brokerages have paid around $6 billion to date to settle U.S. and European regulatory allegations that they manipulated the London Interbank Offered Rate, or Libor, a benchmark against which around $450 trillion of financial products from derivatives to home loans are priced worldwide.

Jul 9, 2014

Draghi urges euro zone states “to be sovereign together”

LONDON, July 9 (Reuters) – European Central Bank President
Mario Draghi urged euro zone states to respect their joint
fiscal rules and extend their cooperation to economic reforms,
telling governments they must “learn to govern together”.

While reiterating his message that the ECB is ready to use
“unconventional instruments” – code for large-scale asset buying
- if needed, he devoted most of a speech in London to pressing
for closer European integration to deliver growth and jobs.

Jul 9, 2014

EU watchdog rolls out rules for closing failed banks

LONDON, July 9 (Reuters) – The European Union’s banking
watchdog has set out guidance on how supervisors must determine
from next year whether an ailing bank can be closed down without
disrupting markets or calling on taxpayer money.

The European Banking Authority’s draft guidance, put out to
public consultation, fleshes out one aspect of a new EU law on
dealing with troubled banks without requiring government money
as happened in the 2007-09 financial crisis.

Jul 9, 2014

UK launches competition review into institutional banking

LONDON, July 9 (Reuters) – Britain’s financial watchdog is
launching a broad “exploratory” review of competition in
wholesale financial markets to check if they operate effectively
to aid the economy and give their institutional, corporate and
government customers a good deal.

The Financial Conduct Authority (FCA) was set up just over a
year ago as part of Britain’s post-financial crisis shake up of
supervision to protect consumers better and increase competition
in markets.

Jul 7, 2014

Top banks face wait for detail of new buffer to protect against bailouts

LONDON, July 7 (Reuters) – Details of a new buffer of bonds
to shield taxpayers from having to rescue a big bank won’t
become clear for at least a year or more, a global banking
regulator said on Monday.

Lenders like Goldman Sachs, Deutsche Bank and HSBC are
waiting to see how big the new cushion of bonds must be. The
cushion represents an added cost and the wait will prolong
regulatory uncertainty that is casting a cloud over valuations
in the banking sector.

Jul 7, 2014

More new banks line up to take on Britain’s big high street lenders

LONDON, July 7 (Reuters) – Britain’s regulators have given
the green light to five new banks since easing rules a year ago
for new entrants to challenge the handful of lenders who
dominate the high street.

The Bank of England and the Financial Conduct Authority also
said on Monday that a further more than 25 potential banking
applicants have been interviewed as regulators face pressure
from lawmakers to increase competition in banking.

Jul 7, 2014

EU regulators to use common scorecard to measure bank risks

LONDON (Reuters) – European Union banking supervisors will use a common “scorecard” from 2016 to check if lenders can stay in business, use reliable IT systems and hold enough capital to pay potential fines, the bloc’s main sector regulator said on Monday.

The proposed scorecard is part of a welter of reforms in the banking sector intended to shield taxpayers from having to rescue lenders, as they had to in the 2008-09 financial crisis.

Jul 4, 2014

EU banks watchdog advises lenders to shun bitcoins

LONDON, July 4 (Reuters) – Banks in the European Union
should refrain from offering customer accounts in virtual
currencies like bitcoins until regulatory safeguards are in
place, the bloc’s banking watchdog said on Friday.

The EU’s executive European Commission responded by saying
it was imperative to look quickly at possible regulation.

Jul 3, 2014

A capital markets union could be next thing in EU’s in-tray

LONDON, July 3 (Reuters) – The European Union may seek to
tighten its grip over financial markets to help find funds to
boost economic growth, a move that could stoke anti-EU sentiment
in Britain, the EU’s largest financial centre.

Bankers and policymakers say capital markets union is seen
as a logical step after the euro zone completes banking union.

    • 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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