Regulation Correspondent, Europe
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Mar 27, 2014

Bank of England readies tools to rein in risky mortgage lending

LONDON (Reuters) – The Bank of England urged banks on Thursday to consider the risk of future spikes in interest rates when they approve mortgages, and prepared tools to rein back potentially dangerous lending.

British house prices have risen by around 10 percent over the past year, and the central bank said mortgages were higher as a share of home-buyers’ income than at any point since 2005, although other indicators remained weaker than average.

Mar 24, 2014

EU’s plans for growth to bring shadow banking in from the cold

LONDON, March 24 (Reuters) – European Commission proposals
due to be published on Thursday on how to fund long-term
investments to boost Europe’s economies brings the start of a
rehabilitation for the image of “shadow banking”, the largely
unregulated market-based provision of credit which lay at the
heart of the financial crisis.

The EC plans envisage engineering a fundamental shift in how
the continent raises money for investment in infrastructure like
roads and technology while at the same time moving away from an
over-reliance on banks for fuelling growth in the economy.

Mar 21, 2014

Exclusive – EU executive plans to promote crowdfunding sector

LONDON (Reuters) – A European Union “quality label” and possible state aid for crowdfunding would help the 1 billion euro (£836 million) sector grow to fund economic growth, the bloc’s executive body said in a document seen by Reuters.

Crowdfunding allows individuals and small businesses to raise money from pools of investors who can put money into peer-to-peer lending schemes or securities such as unlisted shares.

Mar 21, 2014

EU executive plans to promote crowdfunding sector

LONDON, March 21 (Reuters) – A European Union “quality
label” and possible state aid for crowdfunding would help the 1
billion euro ($1.4 billion) sector grow to fund economic growth,
the bloc’s executive body said in a document seen by Reuters.

Crowdfunding allows individuals and small businesses to
raise money from pools of investors who can put money into
peer-to-peer lending schemes or securities such as unlisted
shares.

Mar 20, 2014

UK watchdog fines and bans trader in first gilt-rigging case

LONDON (Reuters) – Britain’s financial watchdog has fined former Credit Suisse bond trader Mark Stevenson 662,700 pounds ($1.1 million) in its first enforcement action for manipulating the 7.2 trillion pound UK government bond market.

The Financial Conduct Authority (FCA) said it had also banned Stevenson from the industry for ramping up the price of a bond in the hope of creaming off a bigger profit during a Bank of England bond-buying operation on October 10.

Mar 20, 2014

UK watchdog fines and bans bond trader in first gilt rigging case

LONDON (Reuters) – Britain’s financial watchdog said on Thursday it had fined former Credit Suisse bond trader Mark Stevenson 662,700 pounds ($1.1 million), in its first enforcement action for manipulating the 7.2 trillion pound UK government bond market.

The Financial Conduct Authority (FCA) said it had also banned Stevenson, who has nearly 30 years’ experience, from the industry for ramping up the price of a bond in the hope of creaming off a bigger profit if the Bank of England bought it.

Mar 18, 2014

Exclusive: EU legal opinion opens door to Tobin tax on forex

LONDON (Reuters) – Deals from the multi-trillion euro a day foreign exchange market could in principle be included in a tax on financial transactions, a legal opinion from European Union lawyers seen by Reuters said.

While effectively ruling out the inclusion of the vast forex market from a transaction tax proposal now on the table, it leaves the door open for the sector to be included later on.

Mar 18, 2014

EU legal opinion opens door to Tobin tax on forex

LONDON, March 18 (Reuters) – Deals from the multi-trillion
euro a day foreign exchange market could in principle be
included in a tax on financial transactions, a legal opinion
from European Union lawyers seen by Reuters said.

While effectively ruling out the inclusion of the vast forex
market from a transaction tax proposal now on the table, it
leaves the door open for the sector to be included later on.

Mar 18, 2014

Bankers sidestepping bonus cap face regulator action – EU’s Barnier

LONDON, March 18 (Reuters) – Bankers who sidestep a cap on
their bonuses will face action from the European Union’s banking
regulator, the bloc’s financial services chief said on Tuesday
as he fought off calls to toughen up the measure.

The cap is one of the most high-profile rules approved by
the 28-country bloc following public anger over high pay at
banks, many of which were propped up by taxpayers in the 2007-09
financial crisis.

Mar 18, 2014

Nasdaq OMX first to win EU approval to clear derivatives

LONDON, March 18 (Reuters) – Nasdaq OMX has kicked
off Europe’s next phase in making financial derivatives safer by
becoming the first clearing house to be authorised under new
European Union rules.

Derivatives, such as credit default swaps, were at the heart
of the 2007-09 financial crisis and their opacity deepened the
woes of Lehman Brothers, the U.S. bank that collapsed in 2008.

    • 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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