Regulation Correspondent, Europe
Huw's Feed
Jun 9, 2014

Banks tell ECB, BoE to back securitised debt talk with action

LONDON, June 9 (Reuters) – Europe’s two top central banks
must turn talk of reviving the securitised debt market to fund
economic growth into speedy action, a top banking lobby said on
Monday.

The market for debt backed by pooled home and other loans
was tarnished when bonds securitising low quality U.S. mortgages
became untradable, kicking off the 2007-09 financial crisis that
eventually led to taxpayers having to bail out banks.

Jun 6, 2014

Basel chief says no appetite to ditch banks’ risk model

LONDON (Reuters) – The global rules used by banks to assess how much capital they need to hold to limit risk will be simplified not scrapped in the face of criticism from the UK and U.S. over how the rules are interpreted, a top regulator said on Friday.

Studies have found wide variations in how banks add up risks, leading some supervisors to accuse them of gaming the system to cut down on how much capital they must hold.

Jun 5, 2014

Eurogroup head floats idea of giving reformers extra time

LONDON, June 5 (Reuters) – Euro zone countries could get
more time to meet budget targets as part of a “contract” to
carry out effective reforms, Jeroen Dijsselbloem, who heads the
Eurogroup of finance ministers, said on Thursday.

The European Commission could play a role in checking
whether changes such as relaxing labour market rules were
actually being done in return for more time to make changes such
as cutting government debt, Dijsselbloem said.

Jun 5, 2014

EU’s Almunia says nothing new yet on forex, Swiss benchmark rate probes

LONDON (Reuters) – The European Commission is busy analyzing information on alleged collusion in the foreign exchange market, but no outcome on this case or another involving Swiss benchmark rates is expected for at least several weeks, a senior EU official said on Thursday.

The European Union executive’s competition commissioner, Joaquin Almunia said last December he was investigating collusion allegations into interest rate benchmarks linked to the Swiss franc and in the foreign exchange market.

Jun 4, 2014

Don’t expect all-knowing BoE to eliminate bubble risks: policymaker

LONDON (Reuters) – The Bank of England’s new risk watchdog, which this month will consider what to do about Britain’s surging housing market, cannot be expected to eliminate the risk of asset price bubbles, a senior policymaker said on Wednesday.

The BoE’s Financial Policy Committee (FPC) is still an experiment using untested tools, said Richard Sharp, an external member of the FPC.

Jun 4, 2014

EU watchdog says fines must be factored into stress test

LONDON (Reuters) – European Union banks should factor in potential fines for past misdeeds when they take part in a regulatory assessment of their financial strength, the bloc’s top banking supervisor said on Wednesday.

Banks have paid about $6 billion in settlements for rigging interest rate benchmarks and a global probe is underway into possible similar manipulation of currency benchmarks.

Jun 4, 2014

EU watchdog blasts banks’ hybrid debt sales practices

LONDON, June 4 (Reuters) – Banks are giving retail customers
poor or misleading information about risks from investing in new
forms of hybrid debt for tapping in a crisis, a top European
Union regulator said on Wednesday.

Banks across the 28-country bloc are under pressure from
regulators to hold more capital and to supplement it with
instruments like contingent capital or “CoCos” that can be
written down or converted into equity if the bank that issued
them gets into trouble.

Jun 3, 2014

EU watchdog censures S&P for French rating cut error

LONDON, June 3 (Reuters) – Europe’s markets watchdog
censured credit ratings agency Standard & Poor’s on
Tuesday for incorrectly announcing a cut in France’s debt, which
compounded investor fears during the euro zone debt crisis.

The error in November 2011 gave European Union lawmakers
ammunition to pass three sets of laws to crack down on ratings
agencies in the 28-country bloc, where they face some of the
toughest rules in the world.

May 29, 2014

UK watchdog wants an ‘innovation heaven’ in financial products

LONDON (Reuters) – Britain’s markets regulator pledged on Thursday to offer a more sympathetic ear to financial firms wanting to develop new products that help customers save for their old age.

Martin Wheatley, chief executive of the Financial Conduct Authority (FCA), struck a more conciliatory note after lawyers have criticised the year-old watchdog for being heavy handed and effectively vetoing new products.

May 28, 2014

First global revenue accounting rule set for 2017

LONDON, May 28 (Reuters) – Investors will be able to compare
more easily from 2017 how much companies from all parts of the
world earn under the first common global revenue rule published
on Wednesday.

Revenue is one of the most important lines in a company’s
accounts and a key benchmark for deciding on mergers and
acquisitions, but different accounting rules in the United
States and the rest of the world make company comparisons
harder.

    • 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."
    • Follow Huw