Regulation Correspondent, Europe
Huw's Feed
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.

Mar 17, 2014

BoE’s Cunliffe says big banks are still too big to fail

LONDON, March 17 (Reuters) – The world’s biggest banks still
could not be dismantled safely, more than five years after the
collapse of Lehman Brothers, the Bank of England’s deputy
governor for financial stability said on Monday.

International standard setters have made progress in
reforming banking rules since Lehman went under in September
2008, Jon Cunliffe, the deputy governor, told a Chatham House
financial conference. But the core task of ending
too-big-to-fail banks remains, he said.

Mar 17, 2014

Global regulators to intensify efforts to revive securitization

LONDON (Reuters) – Global regulators will intensify their efforts to revive a securitization market tarnished by the financial crisis and now seen by policymakers as a key source of funds for the economy, the head of an umbrella regulatory group told Reuters.

Securitization bundles loans into interest-bearing bonds to raise money that banks can use to fund themselves and lend to small companies.

Mar 13, 2014

Bankers behaving badly face 6-year bonus clawback by BoE

LONDON, March 13 (Reuters) – Misbehaving bankers and their
bosses will have to hand back bonuses up to six years after they
pocket them under a rule the Bank of England is proposing to
prevent excessive risk-taking.

The aim of the rule put out for consultation by the central
bank on Thursday is designed to stop bankers taking huge bets in
the knowledge that they could move jobs before any problems come
to light. It marks a toughening of current rules that allow only
for the cancellation or reduction of parts of bonuses that have
been awarded but not yet paid.

Mar 13, 2014

Bank of England proposes six-year clawback on bankers’ bonuses

LONDON (Reuters) – Misbehaving bankers and their bosses will have to hand back bonuses up to six years after they pocketed the cash under a proposed rule from the Bank of England to prevent excessive risk-taking.

The aim of the rule put out for consultation by the central bank on Thursday is designed to stop bankers taking huge bets in the knowledge that they could move jobs before any problems come to light and marks a toughening of current rules that allow only for the cancellation or reduction of parts of bonuses that have been awarded but not yet paid.

Mar 12, 2014

UK watchdog to review, cap payday loan rates

LONDON (Reuters) – Britain’s financial watchdog will review in April how payday lenders collect debts and impose a cap from early 2015 on the sky-high interest rates criticized by politicians and churches.

The Financial Conduct Authority said the review will be one of its first acts next month when it takes on supervision of about 50,000 consumer credit firms.

Mar 11, 2014

BoE to check banker allowances comply with bonus cap

LONDON (Reuters) – The Bank of England is scrutinizing allowances awarded to top staff by banks in an effort to establish whether they are a covert way of avoiding a new European Union cap on bonuses, a senior official at the central bank said on Tuesday.

From next year bankers’ bonuses in the 28-country EU can be no higher than fixed salary, or twice that amount if a bank’s shareholders give their approval. However, HSBC, Lloyds and Barclays are all considering giving top staff monthly or quarterly allowances to boost fixed pay.

Mar 11, 2014

UK watchdog plans crackdown on “add-on” product insurance

LONDON, March 11 (Reuters) – Britain’s financial watchdog is
proposing to crack down on the billion-pound market for “add on”
insurance that people often buy unknowingly when they purchase
items such as a car or a holiday.

Tuesday’s proposals from the Financial Conduct Authority
(FCA) stem from an investigation launched last July which found
poor competition, low levels of claims and consumers potentially
being overcharged by up to 200 million pounds ($332.6 million) a
year for products that they may not need or even use.

Mar 11, 2014

UK financial body urges quick action over foreign exchange ‘fixing’

LONDON (Reuters) – Regulators should deal quickly with allegations that banks have rigged the $5.3 trillion-a-day foreign exchange market to avoid harming Britain’s reputation as a financial centre, a top industry official said on Tuesday.

Chris Cummings, chief executive of finance sector lobby group The CityUK, said the sooner the allegations are dealt with the better for London, which accounts for 40 percent of the global currency market.

    • 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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