LONDON (Reuters) – A central plank of European moves to rein in credit rating agencies was diluted by lawmakers on Tuesday, bowing to pressure from banks and companies who argued that proposals were unworkable or counterproductive.

An initial plan for ratings agencies to be rotated or switched every three years will be weakened to apply only to very specific types of credit and only every five years, the source said.

LONDON (Reuters) – A fifth of company announcements in Britain are preceded by unexplained share price moves, the Financial Services Authority (FSA) said on Tuesday, in its final report before being wound up next year.

The FSA, criticised by policymakers for failing to spot the risk of the financial crisis that was coming, said that 19.8 percent of merger announcements last year were preceded by unusual market moves, seen as an indication of possible insider trading.

LONDON, June 19 (Reuters) – A fifth of company announcements
in Britain are preceded by unexplained share price moves, the
Financial Services Authority (FSA) said on Tuesday, in its final
report before being wound up next year.

The FSA, criticised by policymakers for failing to spot the
risk of the financial crisis that was coming, said that 19.8
percent of merger announcements last year were preceded by
unusual market moves, seen as an indication of possible insider
trading.

LONDON, June 19 (Reuters) – A central plank of European
Union moves to rein in credit rating agencies will be diluted by
lawmakers on Tuesday despite their calls during the financial
crisis for tough action.

The sector, dominated by the “Big Three” — Standard &
Poor’s, Moody’s and Fitch Ratings –
was slammed for giving high ratings to securitised debt linked
to U.S. home loans, leading to the 2007-09 market crisis.

LONDON, June 18 (Reuters) – Blanket curbs on “shadow
banking” could damage the financial system and set back economic
recovery, a body representing the world’s top bankers said on
Monday, making a plea for more flexible reforms of the $60
trillion sector.

In a report published to coincide with the G20 summit in
Mexico, the Institute of International Finance (IIF)
cautioned against overkill in trying to draw a clear dividing
line between shadow and mainstream banking.

LONDON (Reuters) – There is no firm proof that short-selling credit default swaps (CDS), blamed by some policymakers for exacerbating Greece’s debt problem, damages the underlying government bond market, the world’s top securities body said.

CDS are contracts written by large banks that insure the buyer against a default in an underlying asset such as a government or corporate bond.

LONDON, June 15 (Reuters) – The world’s top derivatives
markets are making good progress in implementing tougher rules
for the $640 trillion sector but much still needs to be done, a
G20 task force said on Friday.

The new rules will force banks to record and clear
transactions and are among the world’s core response to the
financial crisis that toppled Lehman Brothers, the U.S. bank
whose fate was sealed because of its huge derivatives holdings.

LONDON/BRUSSELS (Reuters) – Spain’s EU bank bailout has catalyzed growing German and French support for the European Central Bank to take over responsibility from the European Banking Authority for monitoring Europe’s biggest lenders.

France is calling for a banking union to help draw a line under the euro zone sovereign debt crisis and try to break the link between fragile banks and indebted governments. Paris wants the ECB to be the critical overseer of the region’s banking sector, a position Berlin increasingly supports.

LONDON, June 14 (Reuters) – Company audits were a boiler
plate utility and failed to challenge “racy” judgements made by
management, top shareholders told a competition probe into
Britain’s audit market.

The Competition Commission published on Thursday a digest of
what shareholders told its inquiry at a private hearing in
April.

LONDON, June 14 (Reuters) – Britain’s top fraud busting
agency is to focus on big cases and improving intelligence and
quality control, as its new boss shakes up a body lambasted in
the courts for its handling of a case against a pair of
high-profile property barons.

In his first speech since becoming head of the Serious Fraud
Office (SFO), David Green said on Thursday there had been a mix
of unfair and fair criticism but that fundamental change was on
the way.