BASEL Switzerland/LONDON (Reuters) – Banks may have to scrap dividends and rein in bonuses if they breach new rules designed to ensure that creditors rather than taxpayers pick up the bill when big lenders collapse.
Mark Carney, chairman of the Financial Stability Board and Bank of England governor, said the rules, proposed on Monday, marked a watershed in putting an end to taxpayer bailouts of banks considered too big to fail.
BASEL, Switzerland/LONDON, Nov 10 (Reuters) – Global
regulators on Monday proposed new rules to ensure that bank
creditors rather than taxpayers pick up the bill when a big
Mark Carney, chairman of the Financial Stability Board and
Bank of England governor, said the plans marked a watershed in
ending banks that are too big to be allowed to fail.
LONDON, Nov 10 (Reuters) – The world’s biggest banks should
hold a buffer of bonds in case of a collapse so that government
bailouts are avoided, a global regulatory body proposed on
The draft rule is the last major piece of banking reform put
forward by world leaders since the 2007-09 financial crisis
forced taxpayers to shore up undercapitalised lenders.
LONDON, Oct 29 (Reuters) – Britain’s financial watchdog has
fined Yorkshire Building Society (YBS) 4.1 million
pounds ($6.6 million) for failing to deal properly with
thousands of customers who fell behind on their home loan
The penalty is the biggest fine for a building society and
Britain’s second-largest mortgage mutual is also paying 8.4
million pounds in redress to nearly 34,000 customers.
LONDON, Oct 28 (Reuters) – European Union ambassadors are
being urged to inject momentum into stalled plans for a tax on
financial transactions as a December deadline looms, an EU
document seen by Reuters showed.
A group of 11 of the bloc’s 28 member states, including
Germany, Italy and France, have agreed in principle to a
financial transaction tax (FTT) designed to make banks pay for
the taxpayer aid they received in the 2007-09 financial crisis.
LONDON, Oct 28 (Reuters) – The Bank of England is expected
to impose on UK banks a tougher leverage ratio, the broadest of
capital requirements, than under proposed global rules, in a
move to reassure investors that lenders can survive the next
financial crisis, banking sources said.
The BoE is at the same time expected to simplify proposals
on varying the new ratio, which specifies the minimum amount of
core capital a bank must hold as a proportion of its total
assets, regardless of how risky or safe its lending policies
LONDON, Oct 27 (Reuters) – Tougher rules may be needed to
stop a repeat of the “outrageous” behaviour that has hit trust
and confidence in financial markets in recent years, Bank of
England Deputy Governor Minouche Shafik said on Monday.
Launching a consultation into commodity, bond and currency
wholesale markets after banks were fined $6 billion for rigging
the benchmark interest rates, Shafik said that more changes may
be needed to stop the “anything goes” attitude of traders
uncovered in recent enforcement cases.
LONDON, Oct 26 (Reuters) – A health check of banks across
the European Union showed that 24 lenders, all from the euro
zone, were too weak to withstand a three-year recession in a
test aimed at drawing a line under the single currency’s area’s
protracted debt crisis.
Italy’s Monte dei Paschi had the biggest capital
hole to fill at 2.1 billion euros even after its money raising
efforts so far this year.
LONDON (Reuters) – Clearing houses may need bigger capital cushions as more and more trading in financial derivatives comes their way, the Bank of England said in a paper on Friday.
BoE Governor Mark Carney has said that regulators must make sure that clearing houses don’t end up becoming the new breed of “too big to fail” financial firms.
LONDON, Oct 24 (Reuters) – Clearing houses may need bigger
capital cushions as more and more trading in financial
derivatives comes their way, the Bank of England said in a
paper on Friday.
BoE Governor Mark Carney has said that regulators must make
sure that clearing houses don’t end up becoming the new breed of
“too big to fail” financial firms.