Regulation Correspondent, Europe
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Oct 16, 2014

Keep calm over bank accountability rules: Bank of England’s Bailey

LONDON (Reuters) – Britain’s banks are over-reacting to rules aimed at making senior officials accountable for breaches in rules or procedures which happen on their watch, a top regulator said on Thursday.

Bank of England (BoE) Deputy Governor Andrew Bailey defended the so-called senior managers regime, aimed at making it easier to bring individual bankers to book when things go wrong.

Oct 16, 2014

Keep calm over bank accountability rules – BoE’s Bailey

LONDON, Oct 16 (Reuters) – Britain’s banks are over-reacting
to rules aimed at making senior officials accountable for
breaches in rules or procedures which happen on their watch, a
top regulator said on Thursday.

Bank of England (BoE) Deputy Governor Andrew Bailey defended
the so-called senior managers regime, aimed at making it easier
to bring individual bankers to book when things go wrong.

Oct 16, 2014

Banks told not to expect seamless global rules

LONDON, Oct 16 (Reuters) – New global rules making the
financial system safer won’t be seamless and could be revised
soon to help economic growth, senior government and regulatory
officials said on Thursday.

Since the financial crisis struck in 2007-8, governments
have agreed to a welter of regulations forcing banks to hold
more capital and trade derivatives more safely.

Oct 15, 2014

EU watchdog says bankers’ role allowances breach bonus rule

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).

Oct 14, 2014

EU watchdog attacks allowances paid by banks ahead of bonus cap

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.

Oct 13, 2014

G20 watchdog toughens up new rule for securities financing

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.

Oct 13, 2014

EU looks to U.S. for solution to stalemate in reform of money market funds

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.

Oct 13, 2014

EU watchdog to publish report on banker allowances

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.

Oct 11, 2014

Banks accept derivatives rule change to end ‘too big to fail’ scenario

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.

Oct 10, 2014

European banks’ health check results due on October 26

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.

    • 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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