LONDON, Aug 28 (Reuters) – Britain’s eight top lenders can
cut their cash reserves by a collective 90 billion pounds ($140
billion) and use the funds to support economic growth, the Bank
of England’s new governor Mark Carney said on Wednesday.
Britain’s lenders were forced to build up buffers of cash
and UK government bonds far earlier than required under a
LONDON (Reuters) – The United States could improve how it spots and prevents risks in the financial system from turning into destabilizing crises, a global regulatory task force said on Tuesday.
The Financial Stability Board (FSB) said the world’s top insurance market could also streamline supervision of the sector by centralizing powers currently held at state level.
LONDON, Aug 25 (Reuters) – World leaders are expected to
take a softly-softly approach to regulating the so-called shadow
banking sector when they meet in Russia next month to avoid
damaging the flow of finance to the global economy.
While governments have cracked down on risk-taking by
traditional banks in the wake of the financial crisis, the
shadow banking sector, an assortment of financial intermediaries
that handle $60 trillion of transactions a year – roughly the
same size as the world economy – remains a source of systemic
risk for taxpayers.
LONDON, Aug 22 (Reuters) – British insurer CPP and
13 high street banks and credit card issuers will pay up to 1.3
billion pounds ($2 billion) to millions of customers who were
mis-sold CPP credit card insurance policies.
The announcement by the Financial Conduct Authority (FCA) on
Thursday heaps further embarrassment on British banks after a
string of mis-selling scandals and huge compensation payments
partly responsible for them having to increase their cash
LONDON (Reuters) – Global regulators have toughened up standards for insuring home loans after defaults in U.S. mortgages sparked a global financial crisis and an industry shakeout six years on.
Some insurers have filed lawsuits against banks, accusing them of falsely representing the quality of loans they were asked to insure.
LONDON, Aug 2 (Reuters) – Foreign investment banks in
Britain face a shortfall of up to 29 billion pounds to meet new
EU capital rules aimed at shielding taxpayers from having to
rescue banks again, the Bank of England said on Friday.
The rules implement new global standards known as Basel III
in the 28-country bloc, forcing banks to roughly triple the
amount of capital they must hold compared with before the
2007/09 financial crisis when several banks were bailed out.
LONDON, Aug 1 (Reuters) – New European Union rules forcing
insurers to hold enough capital must be finalised this year to
avoid prolonged delay and uncertainty for markets, a top UK
industry executive said.
Simon Lee, chief executive of RSA, was confident the
insurer can meet the new Solvency II rules which will assess a
firm’s ability to meet payouts on customer policies.
LONDON (Reuters) – Bankers could see part of their bonus wiped out if their employer’s capital position falls below certain levels, according to a proposal from the European Union’s banking regulator aimed at protecting taxpayers.
The EU has approved a law to cap bonuses from 2014 at no more than an employee’s fixed salary, although the world’s toughest curb on awards to senior bankers also allows a bonus of up to twice salary if shareholders approve.
LONDON (Reuters) – Accountancy firm Deloitte has lost its appeal against a regulatory ruling that it failed to manage conflicts of interest in its advice to MG Rover Group and the “Phoenix Four” directors who bought the British carmaker before it collapsed.
Deloitte said on Monday the decision could have wider implications and force all accountants to examine what advice they can give. It will sound out business and accounting bodies on whether to mount a further appeal on some points.
LONDON (Reuters) – Unilever is looking for a new auditor, after 26 years with PwC, to comply with a new rule, prompted by questions over why accountants gave banks a clean bill of health just weeks before they were rescued by taxpayers in the 2008 financial crisis.
Britain’s Financial Reporting Council (FRC) said last year that companies should consider changing their auditor at least every decade in order to end cozy long-term relationships.