Regulation Correspondent, Europe
Huw's Feed
Feb 3, 2015

Big banks face $500bn “bail in” bonds bill – S&P

LONDON, Feb 3 (Reuters) – The world’s 30 biggest banks will
have to issue more than $500 billion in bonds to comply with
proposed global rules aimed at shielding taxpayers from the risk
of future banking failures, credit rating agency Standard &
Poor’s (S&P) said on Tuesday.

Leaders of the Group of 20 economies (G20) have proposed
that 30 so-called globally systemic banks (G-SIBs) such as
Goldman Sachs, HSBC and Societe Generale
should hold a buffer of bonds equivalent to between 16
and 20 percent of their risk-weighted assets such as loans,
perhaps by 2019.

Feb 3, 2015

EU capital market reforms won’t unleash wave of new rules – Hill

LONDON, Feb 3 (Reuters) – European Union plans to make
markets better at raising cash for companies won’t spawn a wave
of legislation, the bloc’s financial services chief said on

Jonathan Hill is the commissioner responsible for putting in
place a capital markets union (CMU), a cornerstone of the EU
executive’s plans to boost jobs and growth by for example
investing more in roads and start-up companies.

Feb 2, 2015

Lawmakers say UK losing clout in shaping EU financial rules

LONDON (Reuters) – Britain’s clout in the European Union is weakening just when plans for a capital markets union present a “golden opportunity” for London’s financial sector, UK lawmakers said on Monday.

Efforts by Europe to strengthen banking rules to avoid a repeat of the 2007-09 financial crisis are “admirable”, a report from the EU economic affairs committee of parliament’s upper House of Lords said.

Jan 30, 2015

UK trader who spent investors’ cash on champagne, travel jailed for 7 years

LONDON, Jan 30 (Reuters) – Alex Hope, who set himself up as
a foreign exchange trader, has been jailed for seven years for
defrauding investors of 5.5 million pounds ($7.5 million), of
which he spent nearly half on a globe-trotting, champagne
lifestyle, Britain’s Financial Conduct Authority said on Friday.

Hope was found guilty of fraud by Southwark Crown Court in
central London earlier this month and was sentenced on Friday.
The sentence equals the longest prison term following a
prosecution by the UK markets regulator.

Jan 30, 2015

UK may set deadline for insurance compensation claims

LONDON (Reuters) – Britain’s markets watchdog will consider imposing a deadline on customers claiming compensation for the mis-selling of loan insurance, potentially drawing a line under the country’s costliest consumer finance scandal.

The Financial Conduct Authority (FCA) said on Friday it would collect evidence on whether consumers mis-sold payment protection insurance (PPI) were being compensated properly and use it to assess whether the current approach was working.

Jan 30, 2015

ECB will take time to bed in as bank watchdog – Bundesbank’s Dombret

LONDON, Jan 30 (Reuters) – The euro zone’s three-month old
banking super-regulator won’t get everything right straight away
as it directly supervises big, complex lenders for the first
time, a senior official at Germany’s Bundesbank said on Friday.

The European Central Bank (ECB) became direct supervisor for
120 banks such as Deutsche Bank and Societe Generale
from Nov. 4 in the biggest leap in European financial
integration since the single currency was launched.

Jan 30, 2015

UK watchdog to review loan insurance compensation from banks

LONDON, Jan 30 (Reuters) – Britain’s markets watchdog will
collect evidence on whether consumers mis-sold loan insurance
are being compensated properly, after lenders have paid out 17.3
billion pounds ($26 billion) already in the country’s costliest
financial scandal.

The policies, known as Payment Protection Insurance or PPI,
were meant to protect borrowers in the event of sickness or
unemployment but were often sold to those who would have been
ineligible to claim.

Jan 29, 2015

British banks may seek outside checks on published capital ratios

LONDON, Jan 29 (Reuters) – Banks in Britain may end up
hiring auditors to endorse the capital ratios they publish to
increase investor confidence, an accounting body said on

The ICAEW said it was working with the Bank of England’s
supervisory arm, the Prudential Regulation Authority, on whether
confidence in capital ratios, a core benchmark of health, would
be increased if they were formally audited.

Jan 29, 2015

Exclusive: EU watchdogs could hold sway over London in Europe markets union – document

LONDON (Reuters) – Proposals to create a U.S.-style capital market across Europe to increase companies’ financing options could give European regulators more powers at the expense of the City of London, a European Union document showed.

The plan aims to create a so-called capital markets union by 2019 from Europe’s fragmented bond and stock markets. It outlines possible reforms to allow markets, rather than banks, to become the main source of cash for the region’s companies to help to boost growth and create jobs.

Jan 28, 2015

Deloitte retains top spot among “Big Four” accountants-survey

LONDON, Jan 28 (Reuters) – Deloitte has retained
top spot among the world’s “Big Four” accountants, a survey
showed on Wednesday, noting those leading firms had so far
retained their grip on the audit market in the face of
regulatory changes designed to boost competition.

Deloitte, whose audit clients range from carmaker General
Motors Co to investment bank Morgan Stanley,
achieved total fees including consultancy work of $34.2 billion
last year, giving it a $248 million lead over second-placed PwC
, the annual International Accounting Bulletin World
Survey said.

    • 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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