Regulation Correspondent, Europe
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May 23, 2014

Barclays fined 26 million pounds over gold price fix

LONDON (Reuters) – Barclays Plc (BARC.L: Quote, Profile, Research) has been fined 26 million pounds for failures in internal controls that allowed a trader to manipulate the setting of gold prices just a day after the bank was fined for rigging Libor interest rates in 2012.

Britain’s Barclays is the first bank to be fined over attempted manipulation of the 95-year-old London gold market daily “fix”, although a source said the fine was a one-off and not part of a wider investigation into gold price rigging.

May 22, 2014

Banks, exchanges set to jostle over EU securities reform

LONDON, May 22 (Reuters) – European Union regulators have
published 800 pages of draft rules for a sweeping reform of the
bloc’s securities markets, sparking a race among banks and
exchanges to try to change any proposals that might damage their
profitability.

The 28-country bloc approved a new securities law this year
to better protect investors and apply lessons from the 2007-09
financial crisis. Its markets watchdog, the European Securities
and Markets Authority (ESMA), spelt out on Thursday how elements
of the law will be implemented by early 2017.

May 21, 2014

BoE’s Haldane say better run companies would boost growth

BRISTOL, England (Reuters) – Companies taking a longer-term view could help reduce inequality in society and boost economic growth over the medium term, a senior Bank of England official said on Wednesday.

Andy Haldane, executive director for financial stability, said short-termism at big listed companies, such as focusing on payouts to CEOs and dividends for shareholders “front and centre”, contributes to inequality.

May 21, 2014

EU watchdog to kick off biggest revamp of securities markets

LONDON (Reuters) – The second round of a battle between banks and bourses kicks off this week when European Union regulators publish proposals for the biggest shake-up of the bloc’s securities market in history to increase transparency and investor protection.

The 28-country EU approved a new securities law this year to apply lessons from the 2007-09 financial crisis, and play regulatory catch-up with faster technology such as high-frequency trading.

May 19, 2014

BoE says banks nervous over releasing details of health checks

LONDON (Reuters) – Banks in Britain broadly support Bank of England plans for yearly checks on their capital levels, although they disagree on how detailed the published results should be.

Eight of Britain’s biggest banks, including Barclays (BARC.L: Quote, Profile, Research, Stock Buzz), RBS (RBS.L: Quote, Profile, Research, Stock Buzz), Lloyds (LLOY.L: Quote, Profile, Research, Stock Buzz) and HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz), will undergo a health check this year to see if they hold enough capital to withstand a 35 percent slump in house prices and a spike in interest rates to 4 percent.

May 16, 2014

Plans to de-risk ‘too-big-to-fail’ banks face hurdles in Europe, Asia

LONDON (Reuters) – Global plans to prevent taxpayers from having to pay for big bank failures are at risk because banking supervisors in Europe and Asia do not fully support some of the proposals aimed at drawing a line under the 2007-2008 financial crisis.

Governments have paid out billions of taxpayer dollars to bail out large banks in trouble because of fears that the fallout from a big collapse would be too damaging.

May 13, 2014

FCA says funds failing to come clean on charges

LONDON (Reuters) – Mutual funds should use a common method when explaining their fee structures to make them easier to understand for investors, Britain’s financial watchdog said on Tuesday.

The government is trying to encourage people to save more for their old age, but critics say fund fees are too confusing, hinder competition, and eat up lots of the money built up.

May 13, 2014

UK markets watchdog says funds failing to come clean on charges

LONDON (Reuters) – Mutual funds should use a common method when explaining their fee structures to make them easier to understand for investors, Britain’s financial watchdog said on Tuesday.

The government is trying to encourage people to save more for their old age, but critics say fund fees are too confusing, hinder competition, and eat up lots of the money built up.

May 13, 2014

BoE’s Cunliffe tells banks to prepare for post-”too big to fail” world

LONDON, May 13 (Reuters) – Britain’s banks need to start
preparing for a financial environment in which they are no
longer “too big to fail”, Bank of England Deputy Governor Jon
Cunliffe said on Tuesday.

Taxpayers in Britain poured 65 billion pounds into banks
during the 2007-09 financial crisis and the BoE wants to ensure
that no bank is so big that letting it fail would risk the
market mayhem seen when Lehman Brothers went bust in September
2008.

May 12, 2014

G20 pledge to reduce reliance on credit ratings is proving a hard slog

LONDON (Reuters) – Weaning the financial world away from heavy use of credit ratings is proving harder than expected as workable alternatives are taking time to put in place, global regulators said on Monday.

Leaders of the G20 group of leading economies pledged to end heavy “mechanistic” reliance on ratings in the financial sector after bundled loans based on U.S. mortgages became untradable in 2007 despite being highly rated, triggering a global financial markets and banking meltdown.

    • 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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