LONDON (Reuters) – Global regulators have proposed a twin-track approach to ensuring that interest rate benchmarks are less prone to manipulation by recommending safeguards to the current system and also by developing alternatives.
Ten banks and brokerages have paid around $6 billion to date to settle U.S. and European regulatory allegations that they manipulated the London Interbank Offered Rate, or Libor, a benchmark against which around $450 trillion of financial products from derivatives to home loans are priced worldwide.
LONDON, July 9 (Reuters) – European Central Bank President
Mario Draghi urged euro zone states to respect their joint
fiscal rules and extend their cooperation to economic reforms,
telling governments they must “learn to govern together”.
While reiterating his message that the ECB is ready to use
“unconventional instruments” – code for large-scale asset buying
- if needed, he devoted most of a speech in London to pressing
for closer European integration to deliver growth and jobs.
LONDON, July 9 (Reuters) – The European Union’s banking
watchdog has set out guidance on how supervisors must determine
from next year whether an ailing bank can be closed down without
disrupting markets or calling on taxpayer money.
The European Banking Authority’s draft guidance, put out to
public consultation, fleshes out one aspect of a new EU law on
dealing with troubled banks without requiring government money
as happened in the 2007-09 financial crisis.
LONDON, July 9 (Reuters) – Britain’s financial watchdog is
launching a broad “exploratory” review of competition in
wholesale financial markets to check if they operate effectively
to aid the economy and give their institutional, corporate and
government customers a good deal.
The Financial Conduct Authority (FCA) was set up just over a
year ago as part of Britain’s post-financial crisis shake up of
supervision to protect consumers better and increase competition
LONDON, July 7 (Reuters) – Details of a new buffer of bonds
to shield taxpayers from having to rescue a big bank won’t
become clear for at least a year or more, a global banking
regulator said on Monday.
Lenders like Goldman Sachs, Deutsche Bank and HSBC are
waiting to see how big the new cushion of bonds must be. The
cushion represents an added cost and the wait will prolong
regulatory uncertainty that is casting a cloud over valuations
in the banking sector.
LONDON, July 7 (Reuters) – Britain’s regulators have given
the green light to five new banks since easing rules a year ago
for new entrants to challenge the handful of lenders who
dominate the high street.
The Bank of England and the Financial Conduct Authority also
said on Monday that a further more than 25 potential banking
applicants have been interviewed as regulators face pressure
from lawmakers to increase competition in banking.
LONDON (Reuters) – European Union banking supervisors will use a common “scorecard” from 2016 to check if lenders can stay in business, use reliable IT systems and hold enough capital to pay potential fines, the bloc’s main sector regulator said on Monday.
The proposed scorecard is part of a welter of reforms in the banking sector intended to shield taxpayers from having to rescue lenders, as they had to in the 2008-09 financial crisis.
LONDON, July 4 (Reuters) – Banks in the European Union
should refrain from offering customer accounts in virtual
currencies like bitcoins until regulatory safeguards are in
place, the bloc’s banking watchdog said on Friday.
The EU’s executive European Commission responded by saying
it was imperative to look quickly at possible regulation.
LONDON, July 3 (Reuters) – The European Union may seek to
tighten its grip over financial markets to help find funds to
boost economic growth, a move that could stoke anti-EU sentiment
in Britain, the EU’s largest financial centre.
Bankers and policymakers say capital markets union is seen
as a logical step after the euro zone completes banking union.
LONDON, July 3 (Reuters) – Barclays, trying to
restore its reputation after a series of scandals, has created a
Compliance Career Academy in partnership with Cambridge
University to improve staff training.
Barclays was the first bank to be fined for the alleged
rigging of benchmark interest rates, which resulted in a $450
million fine and cost Bob Diamond, the bank’s CEO at the time,
his job. It was fined 26 million pounds ($44.24 million) in May
this year for manipulating gold prices, and last week New York’s
attorney general filed a lawsuit alleging fraud in its “dark
pool” trading venue.