LONDON (Reuters) – Hefty fines and tough new rules will discourage the Libor rate rigging seen at Swiss bank UBS and other banks – even if some traders will always be motivated by greed, a top UK regulator said on Wednesday.
Tracey McDermott, head of enforcement at the Financial Services Authority (FSA), said big fines had an impact on the status, reputation and credibility of banks, both in the UK and overseas.
LONDON (Reuters) – The standard setter which writes accounting rules for over 100 countries said it will pause for a while and focus on just a few reforms requested by its users, and bed down rules it has already approved.
The International Accounting Standards Board (IASB) has worked on a string of rule changes in response to the financial crisis.
LONDON, Dec 18 (Reuters) – Global regulators have begun an
overhaul of how banks should set aside capital to cover risks
from securitised products after some turned toxic and triggered
the 2007-09 financial crisis.
The Basel Committee published a consultation on Tuesday
which proposed tripling the “risk weighting” for asset-backed
products so that banks hold more capital in case they become
unsellable again as they did during the U.S. subprime crisis and
ensuing credit crunch.
LONDON (Reuters) – Clearing houses hoping for a rich pickings from stricter derivatives rules face spot checks to make sure they are investing enough money in risk management, the Bank of England said.
World leaders have agreed that the $650 trillion markets for credit default swaps, interest rate swaps and other derivatives traded among banks should be centrally cleared from next year to improve transparency.
LONDON, Dec 18 (Reuters) – Clearing houses hoping for a rich
pickings from stricter derivatives rules face spot checks to
make sure they are investing enough money in risk management,
the Bank of England said.
World leaders have agreed that the $650 trillion markets for
credit default swaps, interest rate swaps and other derivatives
traded among banks should be centrally cleared from next year to
LONDON (Reuters) – Europe will definitely fail to meet the globally-agreed January deadline for the implementation of tougher capital requirements for banks after European Union talks to agree the rules were postponed on Tuesday.
World leaders approved the Basel III regime in late 2010, giving the world’s top 20 economies (G20) two years to get ready. The accord will force banks to triple the amount of capital they hold over six years.
LONDON, Dec 17 (Reuters) – Telecoms companies face costly
upheaval to how they treat income from millions of mobile users
after accounting rule-setters backed reform on how revenue from
subsidised handsets is tallied.
The International Accounting Standards Board (IASB), whose
rules are used in over 100 countries from Europe to Canada and
Asia, is simplifying how companies book revenues.
LONDON (Reuters) – U.S. banks want regulators to ease a rule forcing them to hold large amounts of assets that can be tapped at short notice in a crisis, saying the buffers built up already should be enough.
The 2007-09 financial crisis saw lenders having to be shored up by taxpayers as funding markets froze, leaving banks unable to raise fresh money quickly.
LONDON (Reuters) – Financial advisors must contact thousands of people who bought into two Guernsey funds to see if they are eligible for compensation after Britain’s markets watchdog wielded new powers for the first time in its crackdown on mis-selling.
The Financial Services Authority (FSA) said on Monday up to 800 advisors who recommended the two CF Arch cru funds would have to ask customers if they want their cases reviewed for possible mis-selling, after the funds lost an estimated 140.5 million pounds ($227 million) for investors.
ZURICH/LONDON, Dec 14 (Reuters) – UBS will admit
to criminal wrongdoing by its Japanese arm, where one of the
Swiss bank’s traders manipulated yen Libor and euroyen
contracts, to secure a $1-billion-plus settlement with
regulators, people familiar with the matter said on Friday.
Japan’s financial regulator last December ordered UBS’s
Japanese securities arm to suspend Tibor- and Libor-related
derivatives trading for a week after a probe found a former
trader attempted to influence the Tokyo interbank offered rate.