Regulation Correspondent, Europe
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Jul 14, 2015

BoE’s Carney says UK taxpayers still on the hook for bank failures

LONDON, July 14 (Reuters) – Almost seven years after the
collapse of Lehman Brothers sparked mayhem in markets,
regulators are still years away from being able to wind down a
major failed bank at no cost to taxpayers, the Bank of England
said on Tuesday.

Lehman’s demise in 2008 spawned new rules to make it
possible to let a bank fail without calling on taxpayers or
causing widespread damage to the economy.

Jul 14, 2015

EU steps up pressure for rapid deal to revive asset-backed debt

By Huw Jones

(Reuters) – European Union reform of the securitized debt market to help to revive the region’s economy is likely to be binding on member countries to speed up change, a senior official from the bloc’s executive body said on Tuesday.

The European Commission is due to come up with concrete proposals in late September for a capital markets union or CMU to make it easier for companies in Europe to raise cash from financial markets.

Jul 10, 2015

UK’s BoE proposes stricter rule for banks to calculate capital

LONDON, July 10 (Reuters) – Britain’s banks could have to
use a stricter method than global peers for calculating a key
measure of capital from next year to make gaming the rules
harder, the Bank of England said on Friday.

The BoE’s Prudential Regulation Authority (PRA) published a
consultation paper setting out how lenders should compile and
publish leverage ratios, a measure of capital to balance sheets
on a non risk-weighted basis.

Jul 10, 2015

UK financial watchdog promises more clarity on punishments

LONDON, July 10 (Reuters) – Britain’s financial watchdog has
promised to be clearer about how it decides whether to punish
banks and individuals after industry criticism of inconsistency.

The Financial Conduct Authority (FCA), launched in 2013 at a
time of intense political pressure to clean up markets, has been
levying record fines on banks after a string of misconduct and
mis-selling scandals going back two decades or more.

Jul 9, 2015

UK regulator says capital levels at insurers “appropriate”

LONDON, July 9 (Reuters) – Britain will not use new EU
insurance rules to force the sector to top up on capital but
some companies will need a lengthy grace period to increase
their safety buffers, the country’s top insurance regulator said
on Thursday.

The new EU capital rules for insurers, known as Solvency II,
take effect in January.

Jul 8, 2015

UK to scale back bank levy, softens tone of sector regulation

LONDON, July 8 (Reuters) – Britain will largely replace a
levy on bank balance sheets with a surcharge on profits in a
move experts said would help quell talk among lenders of moving
elsewhere to lighten their regulatory burden.

UK Finance Minister George Osborne offered further comfort
to banks facing a welter of new rules since the financial crisis
by asking their regulator, the Bank of England, to help keep
Britain a “highly attractive” location for lenders.

Jul 8, 2015

EU banks watchdog says Greek contagion limited so far, remains vigilant

LONDON (Reuters) – Markets are coping well with uncertainty over Greece’s future in the euro zone, with little sign so far of contagion that would undermine wider European Union financial stability, the bloc’s banking regulator said on Wednesday.

Euro zone members have given Greece until the end of the week to come up with a proposal for sweeping reforms in return for loans that will keep the country from crashing out of the euro.

Jul 7, 2015

Industry coalition plans swaps hub to resolve margin disputes

LONDON (Reuters) – A broad financial industry coalition is working to form a market hub to increase the efficiency of derivatives contract trading and avoid punitive capital charges on disputed margins.

The plans are in response to new rules that will take effect in September 2016 and will require far more collateral, known as margin, to cover swaps contracts that have not been cleared or passed through a third-party backed by a default fund.

Jul 7, 2015

UK proposes tighter rules for financial market traders

LONDON, July 7 (Reuters) – Traders who take bets on market
moves should have to comply with Britain’s tougher financial
rules on individual accountability, regulators proposed on
Tuesday.

The Financial Conduct Authority (FCA) said it was proposing
that a range of people working on wholesale markets should be
covered by new conduct rules finalised for bankers on Tuesday.

Jul 7, 2015

UK watchdog to investigate conduct at RSA’s Irish arm

LONDON, July 7 (Reuters) – Britain’s accounting watchdog
said it would investigate the conduct of individuals who worked
for RSA Insurance Ireland in the run-up to its bail-out by
British parent RSA.

The Financial Reporting Council (FRC) said the investigation
was related to “financial irregularities” at the Irish business.
It did not identify the individuals or say if they still worked
at the business.

    • 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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