LONDON, Sept 19 (Reuters) – The world’s top swaps trade
body, whose ISDAfix benchmark is being investigated by
regulators on both sides of the Atlantic for possible
manipulation, is to reform the market yardstick next year.
Benchmarks help price financial products worth trillions of
dollars around the world but are under the regulatory spotlight
after three banks were fined $2.6 billion for rigging the London
Interbank Offered Rate or Libor.
LONDON (Reuters) – The United States has largely cracked the problem of protecting taxpayers from the danger of having to bail out banks that are “too big to fail” while Europe lags behind, Bank of England Deputy Governor Paul Tucker said.
Allowing large banks to fail without the massive disruption seen when Lehman Brothers collapsed five years ago this week has been the ambition of policymakers after governments had to rescue many lenders in the 2007-09 financial crisis.
LONDON (Reuters) – The European Central Bank’s upcoming assessments of bank balance sheets should include in-depth details on their government bond holdings to be credible, one of the central bank’s top policymakers said on Tuesday.
The ECB will directly supervise 130 top euro zone lenders like Deutsche Bank, Societe Generale and Santander from October 22, 2014 and wants to make sure they are adequately capitalized before taking up the reins.
LONDON, Sept 12 (Reuters) – The power of the European
Union’s Paris-based market watchdog to ban short-selling in any
member state should be annulled, an adviser to the EU’s top
court said in an opinion that will please Britain which brought
Britain had argued that such a power, part of a new EU law
introduced last year, went beyond what the watchdog could do
under the EU treaty.
LONDON, Sept 11 (Reuters) – The latest draft of a EU law on
regulation of market benchmarks such as Libor for interest rates
has ditched a plan to centralise daily supervision under a body
based in Paris, a European Commission document showed.
Banks are likely to be relieved that draft also no longer
calls for an administrator of a benchmark, and any contributor
to it, to be liable to any user for any loss suffered for
failing to comply with the European Union law.
LONDON, Sept 11 (Reuters) – The overhaul of financial
derivatives five years after Lehman Brothers collapsed is still
too patchy and risks an even more devastating crisis, a top
European central banker said on Wednesday.
The bank’s demise in Sept. 2008 left regulators in the dark
over other banks’ exposure to privately-traded derivatives
contracts like credit default swaps at the stricken lender.
STRASBOURG, France/LONDON (Reuters) – Companies found guilty of rigging market benchmarks like Libor could be fined the equivalent of 15 percent of their turnover under a European Union law approved on Tuesday.
The EU law, approved by the European Parliament and due to come into force within two years, revises market abuse rules to make the rigging of benchmarks illegal.
LONDON, Sept 10 (Reuters) – Global regulators urged the Bank
of England (BoE) to find ways to circumvent the secrecy of its
rating system on the financial health of banks and tip off
lenders it thinks are getting into difficulties.
One of Britain’s new financial supervisors, the Prudential
Regulation Authority (PRA) at the BoE, is drawing up
confidential rankings of all banks and insurers using a
so-called “proactive intervention framework” or PIF rating.
LONDON (Reuters) – A plan to tax financial transactions in 11 European Union member states from 2014 is illegal, the bloc’s lawyers have concluded, dealing what could be a final blow to the measure as proposed.
The findings set out in a 14-page legal opinion obtained by Reuters will make it harder to press ahead with a measure aimed at making banks pay about 35 billion euros a year to make up for receiving taxpayer aid during the 2007-09 financial crisis.
LONDON, Sept 10 (Reuters) – A plan to tax financial
transactions in 11 European Union member states from 2014 is
illegal, the bloc’s lawyers have concluded, dealing what could
be a final blow to the measure as proposed.
The findings set out in a 14-page legal opinion obtained by
Reuters will make it harder to press ahead with a measure aimed
at making banks pay about 35 billion euros a year to make up for
receiving taxpayer aid during the 2007-09 financial crisis.