Regulation Correspondent, Europe
Huw's Feed
Sep 27, 2013

Britain’s EU bonus challenge offers scant hope for bankers

LONDON/BRUSSELS Sept 27 (Reuters) – Britain’s challenge to
European Union rules capping bankers’ bonuses is likely to get
bogged down in court long beyond their implementation, and
critics say it is more about pleasing domestic voters
unimpressed by the loss of powers to Brussels.

The UK, which houses Europe’s biggest financial centre, was
outvoted when the European Union agreed that bonuses must be no
more than a banker’s fixed pay, or twice that amount with
shareholder backing.

Sep 25, 2013

Investors urge EU to be firm on more competition in share trading

LONDON (Reuters) – A broad coalition of investors, asset managers and brokers appealed to the European Union on Wednesday not to dilute proposed rule changes that would open securities trading to more competition.

The bloc’s member states and the European Parliament are in final talks on revising trading rules, known as the Markets in Financial Instruments Directive (MiFID), to reflect rapid advances in technology and apply lessons from the financial crisis.

Sep 25, 2013

Britain challenges banker bonus cap in new clash with EU

LONDON (Reuters) – Britain has launched a legal challenge to the European Union’s cap on bankers’ bonuses which London fears will hurt its financial industry.

Finance minister George Osborne has long argued that Brussels has gone too far with reforms aimed at preventing a repeat of the financial crisis. But EU financial services chief Michel Barnier said the bonus cap was legal.

Sep 25, 2013

No housing bubble, but Bank of England says it is watching closely

LONDON (Reuters) – The Bank of England said on Wednesday there was no immediate danger of a property bubble in Britain but that it was keeping a watchful eye out.

It also said it wanted more study on how vulnerable hedge funds that rely on borrowing would be to future interest rate rises.

Sep 25, 2013

Top banks have 115 billion euro capital shortfall, most in Europe

LONDON (Reuters) – The world’s biggest banks would need to boost their capital by 115 billion euros ($155 billion) to comply with tougher rules and more than 60 percent of that shortfall is in Europe, where lenders have been slower to strengthen.

The capital shortfall fell by 83 billion euros during the second half of last year as banks retained more of their profits and raised capital, although the pace of improvement was not as quick in Europe as elsewhere.

Sep 25, 2013

Top EU banks have Basel capital shortfall of 70 billion euros

LONDON (Reuters) – The top 42 banks in the European Union would need an extra 70.4 billion euros ($95 billion) of capital to comply with new rules that take full effect in 2019, the bloc’s banking watchdog said on Wednesday.

Markets and regulators have been putting pressure on banks to move early to comply with the new global Basel III accord being phased in, to dispel any doubts about their ability to thrive and encourage investors to buy their bonds and shares.

Sep 24, 2013

Bank stress tests must bite this time-EU official

LONDON, Sept 24 (Reuters) – The toughest health check
planned so far for European banks must be rigorous enough to
stop the region’s lenders being more lowly rated than their
American rivals, a senior European Union official said on
Tuesday.

The European Central Bank (ECB) is preparing a so-called
asset quality review of the 130 euro-zone based banks it will
directly supervise from October 2014, including the likes of
Deutsche Bank, Societe Generale and
Santander.

Sep 20, 2013

EU watchdog says new short-selling rules not harmful

LONDON, Sept 20 (Reuters) – Banning bets on falling share
prices in the European Union has not damaged prices or ramped up
volatility on stock markets, the bloc’s securities regulator
said on Friday, largely refuting market players’ concerns.

Curbs on so-called short-selling of government debt have,
however, hit turnover in a few cases, according to the European
Securities and Markets Authority (ESMA) in its first study of
new EU short-selling rules.

Sep 19, 2013

CFTC’s Gensler says Libor overhaul will take time

LONDON, Sept 19 (Reuters) – A top U.S. regulator stepped
back from previous calls to scrap the Libor interbank lending
rate, saying instead that reform needed to be led at a global
level and would take time.

Gary Gensler, chairman of the Commodity Futures Trading
Commission, has said in the past that the London Interbank
Offered Rate – which is set daily by the banks themselves and
has been the subject of a major rate-rigging scandal – should be
abandoned straight away. Those comments sparked worry about
market upheavals: Libor prices over $300 trillion in products
globally, from home loans to credit cards.

Sep 19, 2013

Swaps trade body to reform ISDAfix from 2014

LONDON, Sept 19 (Reuters) – The world’s top swaps trade
body, whose ISDAfix benchmark is being investigated by
regulators on both sides of the Atlantic for possible
manipulation, is to reform the market yardstick next year.

Benchmarks help price financial products worth trillions of
dollars around the world but are under the regulatory spotlight
after three banks were fined $2.6 billion for rigging the London
Interbank Offered Rate or Libor.

    • 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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