Regulation Correspondent, Europe
Huw's Feed
Jun 11, 2014

ECB may buy “simple and transparent” ABS, says Mersch

BARCELONA, Spain/LONDON, June 11 (Reuters) – The European
Central Bank may buy “simple and transparent” asset-backed
securities (ABS) to help achieve its target of delivering price
stability to the euro zone, ECB Executive Board member Yves
Mersch said on Wednesday.

Asset-backed securities are created by banks pooling loans
like mortgages or car loans into an interest-bearing bond that
is sold to raise funds.

Jun 10, 2014

UK watchdog expects progress on global accounting rules

LONDON (Reuters) – The United States may allow its companies to use international accounting rules while stopping short of making their use mandatory, a UK regulatory agency said on Tuesday.

World leaders have called for a single set of global book-keeping rules so investors can compare companies more easily.

Jun 10, 2014

Bank of England steps up fight against cyber crime

LONDON, June 10 (Reuters) – The Bank of England sought to
bolster the financial industry’s defences against cyber-attacks
on Tuesday when it unveiled a new framework to spot and test
possible weak points at lenders.

The Bank has said that hacking represents a growing risk for
the financial system which handles money for millions of
customers and companies in Britain.

Jun 9, 2014

Banks tell ECB, BoE to back securitised debt talk with action

LONDON, June 9 (Reuters) – Europe’s two top central banks
must turn talk of reviving the securitised debt market to fund
economic growth into speedy action, a top banking lobby said on
Monday.

The market for debt backed by pooled home and other loans
was tarnished when bonds securitising low quality U.S. mortgages
became untradable, kicking off the 2007-09 financial crisis that
eventually led to taxpayers having to bail out banks.

Jun 6, 2014

Basel chief says no appetite to ditch banks’ risk model

LONDON (Reuters) – The global rules used by banks to assess how much capital they need to hold to limit risk will be simplified not scrapped in the face of criticism from the UK and U.S. over how the rules are interpreted, a top regulator said on Friday.

Studies have found wide variations in how banks add up risks, leading some supervisors to accuse them of gaming the system to cut down on how much capital they must hold.

Jun 5, 2014

Eurogroup head floats idea of giving reformers extra time

LONDON, June 5 (Reuters) – Euro zone countries could get
more time to meet budget targets as part of a “contract” to
carry out effective reforms, Jeroen Dijsselbloem, who heads the
Eurogroup of finance ministers, said on Thursday.

The European Commission could play a role in checking
whether changes such as relaxing labour market rules were
actually being done in return for more time to make changes such
as cutting government debt, Dijsselbloem said.

Jun 5, 2014

EU’s Almunia says nothing new yet on forex, Swiss benchmark rate probes

LONDON (Reuters) – The European Commission is busy analyzing information on alleged collusion in the foreign exchange market, but no outcome on this case or another involving Swiss benchmark rates is expected for at least several weeks, a senior EU official said on Thursday.

The European Union executive’s competition commissioner, Joaquin Almunia said last December he was investigating collusion allegations into interest rate benchmarks linked to the Swiss franc and in the foreign exchange market.

Jun 4, 2014

Don’t expect all-knowing BoE to eliminate bubble risks: policymaker

LONDON (Reuters) – The Bank of England’s new risk watchdog, which this month will consider what to do about Britain’s surging housing market, cannot be expected to eliminate the risk of asset price bubbles, a senior policymaker said on Wednesday.

The BoE’s Financial Policy Committee (FPC) is still an experiment using untested tools, said Richard Sharp, an external member of the FPC.

Jun 4, 2014

EU watchdog says fines must be factored into stress test

LONDON (Reuters) – European Union banks should factor in potential fines for past misdeeds when they take part in a regulatory assessment of their financial strength, the bloc’s top banking supervisor said on Wednesday.

Banks have paid about $6 billion in settlements for rigging interest rate benchmarks and a global probe is underway into possible similar manipulation of currency benchmarks.

Jun 4, 2014

EU watchdog blasts banks’ hybrid debt sales practices

LONDON, June 4 (Reuters) – Banks are giving retail customers
poor or misleading information about risks from investing in new
forms of hybrid debt for tapping in a crisis, a top European
Union regulator said on Wednesday.

Banks across the 28-country bloc are under pressure from
regulators to hold more capital and to supplement it with
instruments like contingent capital or “CoCos” that can be
written down or converted into equity if the bank that issued
them gets into trouble.

    • 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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