Regulation Correspondent, Europe
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Sep 5, 2014

Exclusive: G20 signals flexibility on big bank failures – sources

LONDON (Reuters) – Regulators trying to end the problem of “too big to fail” banks are moving closer to a landmark deal that will give large banks more flexibility about how to deal with losses when they go bust and cut the amount of fresh bonds they will need to issue.

Global regulators, led by Bank of England governor Mark Carney, want to agree a set of rules that would force bondholders to cover the losses that arise when a major bank fails, to avoid a repeat of the last financial crisis when taxpayers were forced to foot the bill.

Sep 5, 2014

Britain eases rules for foreign bank branches

LONDON, Sept 5 (Reuters) – Foreign banks can operate as
branches in Britain but only if they hold minimal deposits and
meet other safeguards under new Bank of England (BoE) rules
partly aimed at making it easier for Chinese wholesale banks to
set up shop in London.

The new rules mark a formal change of tack by Britain whose
regulators since the 2007-09 financial crisis have put pressure
on all types of foreign bank branches to become subsidiaries
that are more accountable to local supervisors.

Sep 5, 2014

EXCLUSIVE: G20 finalising flexible “bail in” bond deal for big banks – sources

LONDON (Reuters) – The world’s biggest banks may be able to count surplus capital towards new buffers of special bonds being imposed by regulators, two sources familiar with draft proposals said.

In order to secure a deal the regulators have agreed to a more flexible approach to cater for differences in banking models across the world, both sources said.

Sep 4, 2014

Exclusive: G20 finalizing flexible ‘bail in’ bond deal for big banks – sources

LONDON (Reuters) – The world’s biggest banks may be able to count surplus capital toward new buffers of special bonds being imposed by regulators, two sources familiar with draft proposals said.

In order to secure a deal the regulators have agreed to a more flexible approach to cater for differences in banking models across the world, both sources said.

Sep 3, 2014

Banking regulators still see supervisory gaps at global financial firms

LONDON (Reuters) – Financial industry regulators need better coordination in the event of a big multinational financial institution failing or breaching compliance rules, the world’s top supervisory bodies have concluded in a survey.

Arrangements for handling failures of diverse financial groups are inadequate according to the survey by the Joint Forum which comprises the Basel Committee of global banking supervisors, the International Organization of Securities Commissions (IOSCO) and the International Association of Insurance Supervisors (IAIS).

Sep 2, 2014

Rekindling Europe’s repackaged debt market will take years

LONDON, Sept 2 (Reuters) – Reviving Europe’s repackaged debt
market to fund economic recovery will take years and hinge on a
re-invention of the sector rather than quick regulatory tweaks,
bankers and regulators say.

The securitised debt, also known as asset-backed securities
or ABS, is created by banks pooling mortgages, and corporate,
auto or credit card loans and selling them to insurers, pension
funds and even the European Central Bank (ECB). This could help
wean the banks off cheap ECB money and provide funds that can be
lent to other businesses, helping economies to grow.

Sep 2, 2014

UK accounting watchdog fines Mazars two million pounds

LONDON, Sept 2 (Reuters) – Britain’s accounting watchdog has
fined audit and advisory firm Mazars 2 million pounds ($3.3
million) for failing in 2007 to meet regulatory standards while
advising a pension fund.

It is the latest example of how the Financial Reporting
Council (FPC) is using its enhanced armoury of sanctions in a
bid to raise standards in a sector criticised for its
performance in the run up to the global financial crisis.

Aug 29, 2014

Market body revises rules for sovereign defaults

LONDON, Aug 29 (Reuters) – Banks, investors and other users
of bond markets have agreed to change how they would deal with
defaulting government debt in an attempt to avoid the disputes
seen with Argentina.

The International Capital Market Association (ICMA)
published a revised framework on Friday that allows a majority
of investors holding sovereign bonds that default to make
changes to the bond terms, such as extending maturities or
reducing the principal.

Aug 28, 2014

UK watchdog fines Deutsche Bank $8 million for reporting errors

LONDON, Aug 28 (Reuters) – Britain’s financial regulator has
fined Deutsche Bank AG 4.7 million pounds ($8
million) for wrongly reporting certain market transactions for
nearly six years.

The Financial Conduct Authority said in a statement on
Thursday the bank failed to accurately report all the
contract-for-difference (CFD) equity swaps, totalling 29
million, it executed between November 2007 and April 2013.

Aug 26, 2014

FCA criticised for demanding personal pledges

LONDON (Reuters) – Britain’s Financial Conduct Authority is too quick to make top staff at firms pledge formally to carry out changes the watchdog orders, a body representing financial firms has said.

Graham Beale, chairman of the Financial Conduct Authority’s Practioner Panel, said there was concern at the increasing use of “attestations”, whereby the watchdog forces an individual at a supervised firm to sign up to making specific changes.

    • 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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