Regulation Correspondent, Europe
Huw's Feed
Oct 21, 2013

EU unveils rules to ensure level playing field in bank tests

LONDON, Oct 21 (Reuters) – Europe’s top banking regulator
has set out rules to ensure EU banks cannot rely on national
definitions to obscure the true state of their books in an
upcoming assessment of whether they need more cash.

The last two rounds of the EU’s “stress tests”, which were
widely criticised for not being tough enough, gave national
authorities leeway to set key definitions such as what counted
as a bad loan and which loans were subject to “forbearance”.

Oct 17, 2013

UK says its local banking rules eased for all, not just Chinese

LONDON (Reuters) – Britain is ready to relax its banking rules for any non-European bank, not just those from China who want to set up investment banking operations in London, its chief industry regulator said on Thursday.

Earlier this week finance minister George Osborne had said the Bank of England’s Prudential Regulation Authority (PRA) will holds talks with Chinese banks to allow them to set up wholesale banking branches in London, easing regulations imposed after the financial crisis.

Oct 17, 2013

EU close to breaking deadlock on insurance capital rules-lawmaker

LONDON, Oct 17 (Reuters) – The European Union is close to
finalising a deal on how insurance companies will hold enough
capital to keep policyholders safe which will severely water
down the version sought by industry regulators, a senior EU
lawmaker said.

Negotiations on the law known as Solvency II have dragged on
for years due to disagreements over how much capital firms must
hold to cover to cover products offering guaranteed returns over
a long period.

Oct 17, 2013

EU’s Barnier warns U.S. of tit-for-tat action over banks

LONDON (Reuters) – The European Union’s financial services chief warned of tit-for-tat action if the United States pushes ahead with plans to impose extra capital requirements on foreign banks.

In December, Federal Reserve Board Governor Daniel Tarullo said foreign banks should be required to hold as much capital as their U.S. counterparts, regardless of how their overseas parent companies are funded.

Oct 17, 2013

EU’s Barnier defends bankers’ bonus cap

LONDON, Oct 17 (Reuters) – Capping bankers’ bonuses will
ensure lenders manage risks properly and Britain’s legal
challenge was unfounded, the European Union’s financial services
chief said on Thursday.

Britain is challenging the cap in the European Court of
Justice, arguing that limiting a bonus to no more than fixed pay
from 2014 – or twice that amount with shareholder approval -
will make banks riskier by pushing up fixed pay.

Oct 16, 2013

Europe fears U.S. push for repo fire sale risk rule

LONDON, Oct 16 (Reuters) – A key European market for
financing banks and companies fears the United States will use
its political clout to push through ill-suited global rules to
cut the potential risk of fire sales in assets used to back
transactions.

New York Federal Reserve Bank President William Dudley said
earlier this month the $5 trillion U.S. market for repurchase
agreements or repos must work harder to cut risks or it may face
intervention.

Oct 15, 2013

Bugbear securities of 2008 crisis make big comeback – IOSCO

LONDON, Oct 15 (Reuters) – Collateralised debt obligations
(CDOs), the complex financial instruments at the heart of the
2008 financial crisis, have almost regained their previous
popularity because of their high returns, and could form a
bubble, global regulators said on Tuesday.

CDOs are a type of security based on an underlying pool of
bonds or other assets that offers attractive returns at a time
of historically low interest rates.

Oct 15, 2013

Competition Commission rows back on audit reforms

LONDON (Reuters) – Britain has pulled back from accounting reforms that would have forced top companies to change book-keepers every five years, putting its regulators potentially at odds with tougher reforms likely to be introduced across the European Union.

The reforms are part of a regulatory clampdown following the 2007-09 financial crisis, because auditors had given banks a clean bill of health just before many had to be rescued by taxpayers.

Oct 15, 2013

UK competition watchdog rows back on audit reforms

LONDON, Oct 15 (Reuters) – Britain has pulled back from
accounting reforms that would have forced top companies to
change book-keepers every five years, putting its regulators
potentially at odds with tougher reforms likely to be introduced
across the European Union.

The reforms are part of a regulatory clampdown following the
2007-09 financial crisis, because auditors had given banks a
clean bill of health just before many had to be rescued by
taxpayers.

Oct 14, 2013

IASB accounting body rejects EU parliament’s funding conditions

LONDON (Reuters) – The group which writes global accounting rules said the European Parliament was threatening its independence by calling for a fundamental change to the way it sets standards, and linking it to future funding.

The parliament wants the International Accounting Standards Board (IASB) to include a specific reference to “prudence” in its basic tenets, to put pressure on accountants to err on the side of caution when scrutinising losses at banks.

    • 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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