Regulation Correspondent, Europe
Huw's Feed
Sep 10, 2014

EU’s Juncker offers Britain banking olive branch

LONDON (Reuters) – New European Commission President Jean-Claude Juncker handed Britain supervision of EU financial services on Wednesday, offering an olive branch to a country that is weighing its future in the bloc.

Juncker, whose appointment to head the European Union’s executive was strongly opposed by British Prime Minister David Cameron, said Jonathan Hill will become the European Union’s first dedicated financial services commissioner, giving him huge influence over the City of London and rivals Paris and Frankfurt.

Sep 9, 2014

Global deal in sight to prevent re-run of post-Lehman chaos

LONDON, Sept 9 (Reuters) – The $700 trillion financial
derivatives industry will make a fundamental change to its
contracts this year to help regulators wind down failed banks
without destabilising markets, the world’s main derivatives body
said on Tuesday.

Global financial watchdogs want to be able to put a
temporary halt on market participants trying to “close out”
derivatives contracts if a bank runs into trouble.

Sep 9, 2014

UK watchdog says banks struggle to clean up forex market

LONDON (Reuters) – Banks are struggling to stamp out activity at the root of alleged manipulation in foreign exchange markets, the chairman of Britain’s Financial Conduct Authority (FCA) watchdog told a parliamentary committee on Tuesday.

The FCA and U.S. regulators are investigating allegations that dealers at major banks colluded and manipulated key reference rates in the $5.3 trillion a day foreign currency market, the world’s biggest and least regulated.

Sep 9, 2014

MPs ‘fed up’ with ‘obstructive’ financial watchdog

LONDON (Reuters) – MPs accused the country’s financial watchdog on Tuesday of failing to volunteer details about how it operates and takes key decisions affecting millions of investors.

The Treasury Select Committee clashed repeatedly with John Griffith-Jones, chairman of the Financial Conduct Authority over requests to share privately the watchdog’s internal workings.

Sep 9, 2014

UK lawmakers “fed up” with “obstructive” financial watchdog

LONDON, Sept 9 (Reuters) – British lawmakers accused the
country’s financial watchdog on Tuesday of failing to volunteer
details about how it operates and takes key decisions affecting
millions of investors.

The Treasury Select Committee clashed repeatedly with John
Griffith-Jones, chairman of the Financial Conduct Authority over
requests to share privately the watchdog’s internal workings.

Sep 8, 2014

EU’s Barnier seeks result of probe into banker allowances by end of September

LONDON (Reuters) – Banks use of so-called allowances to soften a European Union cap on bonuses could face a “coordinated policy response”, the EU’s financial services chief Michel Barnier has warned, prompting bankers to argue politicians should steer clear of pay.

The EU imposed controls on banker bonuses, blamed for encouraging risk-taking by staff whose year-end haul was linked to their revenue-generating record, after taxpayers were forced to shore up lenders whose shaky finances were suddenly exposed in the financial crisis of 2007-2009.

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.

    • 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."
    • Follow Huw