Regulation Correspondent, Europe
Huw's Feed
May 19, 2014

BoE says banks nervous over releasing details of health checks

LONDON (Reuters) – Banks in Britain broadly support Bank of England plans for yearly checks on their capital levels, although they disagree on how detailed the published results should be.

Eight of Britain’s biggest banks, including Barclays (BARC.L: Quote, Profile, Research, Stock Buzz), RBS (RBS.L: Quote, Profile, Research, Stock Buzz), Lloyds (LLOY.L: Quote, Profile, Research, Stock Buzz) and HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz), will undergo a health check this year to see if they hold enough capital to withstand a 35 percent slump in house prices and a spike in interest rates to 4 percent.

May 16, 2014

Plans to de-risk ‘too-big-to-fail’ banks face hurdles in Europe, Asia

LONDON (Reuters) – Global plans to prevent taxpayers from having to pay for big bank failures are at risk because banking supervisors in Europe and Asia do not fully support some of the proposals aimed at drawing a line under the 2007-2008 financial crisis.

Governments have paid out billions of taxpayer dollars to bail out large banks in trouble because of fears that the fallout from a big collapse would be too damaging.

May 13, 2014

FCA says funds failing to come clean on charges

LONDON (Reuters) – Mutual funds should use a common method when explaining their fee structures to make them easier to understand for investors, Britain’s financial watchdog said on Tuesday.

The government is trying to encourage people to save more for their old age, but critics say fund fees are too confusing, hinder competition, and eat up lots of the money built up.

May 13, 2014

UK markets watchdog says funds failing to come clean on charges

LONDON (Reuters) – Mutual funds should use a common method when explaining their fee structures to make them easier to understand for investors, Britain’s financial watchdog said on Tuesday.

The government is trying to encourage people to save more for their old age, but critics say fund fees are too confusing, hinder competition, and eat up lots of the money built up.

May 13, 2014

BoE’s Cunliffe tells banks to prepare for post-”too big to fail” world

LONDON, May 13 (Reuters) – Britain’s banks need to start
preparing for a financial environment in which they are no
longer “too big to fail”, Bank of England Deputy Governor Jon
Cunliffe said on Tuesday.

Taxpayers in Britain poured 65 billion pounds into banks
during the 2007-09 financial crisis and the BoE wants to ensure
that no bank is so big that letting it fail would risk the
market mayhem seen when Lehman Brothers went bust in September
2008.

May 12, 2014

G20 pledge to reduce reliance on credit ratings is proving a hard slog

LONDON (Reuters) – Weaning the financial world away from heavy use of credit ratings is proving harder than expected as workable alternatives are taking time to put in place, global regulators said on Monday.

Leaders of the G20 group of leading economies pledged to end heavy “mechanistic” reliance on ratings in the financial sector after bundled loans based on U.S. mortgages became untradable in 2007 despite being highly rated, triggering a global financial markets and banking meltdown.

May 8, 2014

EU watchdog proposes window to adjust to derivatives clearing

LONDON, May 8 (Reuters) – Banks should get a breathing space
of a few months to adjust to coming new rules on the clearing of
derivatives deals, a top European Union regulator proposed on
Thursday.

The new rules, designed to make markets safer, will require
banks to pass more derivatives transactions in Europe through
clearing houses – third parties which are backed by a default
fund in case one side of the trade goes bust. Uncleared deals -
known as over-the-counter (OTC) – will attract higher charges
because of the increased risk.

May 7, 2014

Banks in UK face having to file two sets of accounts

LONDON, May 7 (Reuters) – Banks in Britain may have to
publish two sets of accounts, one for shareholders, the other
showing how they comply with rules from their supervisors, a top
UK regulator said on Wednesday.

Win Bischoff, chairman of the Financial Reporting Council
(FRC), the watchdog that polices accountants in Britain, told
lawmakers he backed their recommendation for two sets of
accounts to tighten scrutiny of lenders.

May 7, 2014

EU watchdog says biggest securities shake-up only half done

LONDON, May 7 (Reuters) – The biggest shake-up in the
European Union securities market is only half way complete with
a heavy load of new rules yet to come, a top EU regulator said
on Wednesday.

The 2007-09 financial crisis, which forced governments to
shore up banks, unleashed a wave of new market and banking rules
which are only now being rolled out to make the financial system
safer and shield taxpayers in future crises.

May 7, 2014

EU watchdog sounds warning over patchwork transaction tax

LONDON (Reuters) – A tax on stock, bond and derivatives transactions in fewer than half of European Union member states would “not be good” for the bloc’s securities market, a top EU regulator said on Wednesday.

The aim of the tax is to make banks pay back some of the taxpayer money they were given during the 2007-09 financial crisis but the levy is likely to raise only a fraction of the 35 billion euros originally hoped for as splits emerge over what should be taxed.

    • 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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