Regulation/Central banks
Doubt over Fed’s ability to limit systemic risk
The Obama administration’s proposals for safeguarding the financial system place the US Federal Reserve at the heart of a new regulatory regime for systemic risk, but some former regulators are sceptical of the Fed’s ability to carry out the job.
Central clearing will need new laws, Isda report finds
New laws will be needed in the US and Europe to support the introduction of central clearing of credit default swap (CDS) trades, according to a study published yesterday by the International Swaps and Derivatives Association.
Anglo-Irish CDS widen on buyback plans
The cost of credit protection on Anglo Irish Bank soared this week, rising to 679.1 basis points (bp) from 628.9 bp on July 3, as the bank announced plans to buy back billions of pounds and euros in Tier 1 and Tier 2 securities.
Singapore's MAS bans 10 retail structured note distributors
The Monetary Authority of Singapore (MAS) has banned 10 financial institutions from selling structured notes, after their clients lost S$401 million by investing in Lehman-linked structured credit products.
UK chancellor warns bankers off a return to excess
Daily news headlines
Basel implementation chief: no need for Basel III
Daily news headlines
Basel implementation chief: no need for Basel III
Modifications being made to Basel II are sufficient to tackle the flaws in the framework and "we are certainly not going in the direction of Basel III", according to the chair of the standards implementation group of the Basel Committee on Banking…
The usual upsets
Regulation
Agencies aim to unite US with Basel liquidity risk standards
US regulatory authorities yesterday released proposed guidance on contingent funding and liquidity risk in a bid to bring US financial institutions into alignment with international liquidity standards.
Central concerns
The European Central Bank (ECB) has been pumping liquidity into the financial markets since August 2007, extended the list of assets eligible as collateral for credit operations and cut rates to record low levels. Jose Manuel Gonzalez-Paramo, a member of…
BIS outlines 'narrow path ahead' in annual report
Daily news headlines
AIG warns of potential losses in CDS portfolio
AIG could be exposed to further losses on the super-senior credit default swap (CDS) portfolio held by its subsidiary AIG Financial Products (AIG FP) should credit markets continue to deteriorate, according to a filing the company made to the US…
Madoff sentenced to 150 years as investigations into feeder funds continue
Bernard Madoff was sentenced to 150 years in prison in the Manhattan federal court yesterday.
BIS warns of "enormous risks to recovery"
In its annual report, released June 29, the Bank for International Settlements (BIS) warned worldwide rescue efforts for the financial industry might be inadequate.
'Improvement in market conditions' sees Fed cut bank aid
The US Federal Reserve Board has cut back several of the support facilities put in place over the past 18 months, arguing the recovery of the financial markets has made them unnecessary.
Rise in inflation coming as rates remain low, BarCap predicts
Inflation is set to rise in late 2009 and 2010, driven by rising commodity prices and low central bank rates, according to research from Barclays Capital, released on June 25.