Central banks/Foreign exchange
European supervisors press for more detail on EC overhaul plans
The European Commission (EC) is expected to publish feedback on its proposals for an overhaul of financial supervision in August, but senior European regulators are already expressing concern about some aspects of the proposed reforms.
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.
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.
Almost all SIV assets now sold off, Fitch says
The structured investment vehicles (SIVs) at the heart of the credit crisis have now disposed of 95% of their $400 billion in assets, according to analysis released today by credit rating agency Fitch Ratings.
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.
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.
Eurozone dips into deflation, but high inflation still a risk
Inflation in the eurozone turned negative in June for the first time since the single currency was set up in 1999, but rising commodity prices are likely to push inflation back up soon across the world, some analysts believe.
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.
Risk Derivatives Summit : balance sheet reform is essential
Runaway credit growth was at the root of the crisis, and regulatory reform must start by clamping down on it, John Greenwood, chief economist at Invesco in London, told the Risk Derivatives Summit audience yesterday.
Basel changes could "kill off correlation trading”
Proposed changes to the Basel II Accord’s trading book regime, due in early July, will make correlation trading uneconomical unless a compromise can be found, say dealers.
US regulatory reforms will target the big players
The Obama administration’s proposals on regulatory reform make it clear that, in future, size will matter to the regulation of US financial firms.
SNB considers restricting size of Credit Suisse and UBS
The Swiss National Bank (SNB) may impose size limits on Credit Suisse and UBS due to "unique" systemic risks in the Swiss financial system, it revealed on June 18.