Regulation Correspondent, Europe
Huw's Feed
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.

Oct 14, 2013

Accounting body rejects cash conditions from EU parliament

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 scrutinizing losses at banks.

Oct 9, 2013

Britain creates watchdog to shake up banking payments system

LONDON, Oct 9 (Reuters) – Britain is to set up a new
regulator to prise open the privately-owned payments system and
cut the cost for new entrants to take on big high street banks.

The “utilities style” regulator will have a core aim of
increasing competition in a sector that handled 17.5 billion
non-cash payment transactions last year, the finance ministry
said in a statement.

Oct 9, 2013

Regulators map out first capital blueprint for insurers

LONDON (Reuters) – The world’s top insurers could be forced to raise fresh capital under rules proposed by regulators on Wednesday, echoing measures imposed on the banks to try to avert the risk of another financial crisis.

The insurance industry say it wasn’t to blame for the havoc resulting from reckless bank lending, yet events at AIG (AIG.N: Quote, Profile, Research, Stock Buzz) – which had to be rescued by the U.S. government in one of the biggest-ever bailouts – showed risks can lie outside the banking sector.

    • 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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