LONDON, Oct 15 (Reuters) – The bulk of a new type of
allowance paid to bankers are in breach of the European Union’s
bonus cap and must be changed by the end of the year, the EU
banking watchdog said on Wednesday, raising the prospect that
banks will have to bump up basic pay or risk losing top staff.
The sight of bankers pocketing hefty sums at a time when
many people are hit by pay freezes and high unemployment across
Europe prompted the EU to cap the bonuses of bankers earning
more than 500,000 euros ($630,000).
LONDON, Oct 14 (Reuters) – Europe’s banking watchdog
criticised lenders’ use of allowances in the face of an
impending cap on bonuses, signalling that top bankers in London
could face a shake-up in their pay contracts.
The European Banking Authority (EBA) is due to publish a
report this week on whether quarterly and monthly allowances
some banks now give top staff to boost their fixed pay are
simply a ploy to blunt the impact of the cap, due to be
introduced next year.
LONDON (Reuters) – Global regulators are making it more expensive for hedge funds and insurance companies to raise money from loaning shares in a bid to curb hitherto unregulated risks in “shadow banking”.
Securities financing are typically short-term money-raising transactions between banks and other financial institutions, involving the lending and borrowing of shares or the use of repurchase agreements or repos.
LONDON (Reuters) – European Union lawmakers will study new U.S. rules to help them to end a year-long deadlock over how to regulate the bloc’s 1 trillion euro ($1.3 trillion) money market funds (MMF) sector.
MMFs are used by companies to park cash and earn a moderate return, and by banks to manage short-term cashflow.
LONDON (Reuters) – Top bankers in London and elsewhere in the European Union find out in coming days if their pay contracts may be torn up to stop their attempts at softening the bloc’s cap on bonuses.
The European Banking Authority (EBA), an EU watchdog, is due to publish a report on whether so-called monthly or quarterly “allowances” some banks now give top staff to boost their pay, are simply a ploy to blunt the cap’s impact.
LONDON (Reuters) – The $700 trillion financial derivatives industry has agreed to a fundamental rule change from January to help regulators to wind down failed banks without destabilising markets.
The International Swaps and Derivatives Association (ISDA) and 18 major banks that dominate the market will now allow financial watchdogs to apply temporary stays to prevent a rush to close derivatives contracts if a bank runs into trouble, the ISDA said on Saturday.
FRANKFURT/LONDON (Reuters) – The results of Europe’s most comprehensive review of banks’ health will be released on Oct. 26, the European Central Bank and the European Banking Authority said on Friday, which will give the clearest picture yet of the state of the sector.
The ECB hopes the tests will banish fears about the health of European banks, which were pummeled during the financial crisis, and restore investor trust and revive lending to euro zone households and companies – a key to getting economic recovery back on track.
LONDON, Oct 10 (Reuters) – The European Commission published
new rules on Friday to encourage more securitisation of assets
such as car and consumer loans and small business loans as part
of a drive to channel more funds into the flagging European
The new rules form part of laws designed to make banks
better able to withstand shocks, and to keep insurers solvent.
LONDON, Oct 9 (Reuters) – The European Commission is
expected to allow the securitisation of more assets such as car
and consumer loans and small business loans as part of a drive
to channel more funds into the flagging European economy,
banking sources said on Thursday.
The new rules, part of a law designed to make banks better
able to withstand shocks, were due to be published, possibly as
soon as Friday, along with another law to keep insurers solvent
which will also encourage more securitisation.
LONDON, Oct 6 (Reuters) – Britain has given its banks three
months to show how they plan to protect their retail customers
from riskier parts of their operations.
The Bank of England is forcing lenders to set up a boundary
around their high street operations in an effort to protect
taxpayers from any repetition of the multi-billion pound
bailouts of investment banking operations that occurred under
the financial crisis.