Regulation/Foreign exchange
Turner condemns 'rent seeking' banks
Adair Turner, chairman of the UK Financial Services Authority, has accused banks of using financial innovation "to extract economic rents rather than deliver services of real value to the real economy", and called for higher capital levels and…
FSF: Valuation techniques and leverage aggravate pro-cyclicality
Regulators should address the pro-cyclical effects of market-sensitive valuation practices and increasing leverage, according to the Financial Stability Forum (FSF).
City of London defends OTC derivatives markets
Political pressure for reform risks crushing the over-the-counter derivatives market, warns a report published today by the City of London.
Fed divulges process behind bank stress tests
The US Federal Reserve has released details of the methodology behind its Supervisory Capital Assessment Programme (SCAP), the recently concluded stress tests conducted by regulators to ascertain whether additional capital replenishment is needed at the…
New FSA banking regulation aims to promote fairness for consumers
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OpRisk Europe: FSA condemns operational risk weaknesses
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Utilities call for early allocation of emissions
US utilities have called on Congress to allocate emissions allowances in the early years of a national cap-and-trade scheme during testimony before the House Energy and Commerce Committee yesterday.
OpRisk Europe: Dump Basel II, MP says
Basel II should be abandoned in favour of tougher regulations, UK member of parliament John Redwood told operational risk managers in London yesterday.
Government ownership of banks possible, asserts Tarp board
According to a report released today by the Financial Stability Oversight Board, the government has the potential to take a major ownership stake in banks via the Capital Assistance Program (Cap), which was designed to provide capital to ailing banks…
IMF: leverage best for determining bank bailouts
Leverage ratios, return on assets and stock data are among the most reliable indicators for predicting whether banks would require government intervention in the credit crisis, according to a study published by the International Monetary Fund (IMF) this…
OpRisk Europe: FSA condemns operational risk weaknesses
Financial institutions have failed to properly manage their operational risk in recent years and can expect to be subjected to higher requirements in future, an official from the UK Financial Services Authority (FSA) warned yesterday.
Isda AGM: US regulator identifies six weaknesses in OTC market
Theo Lubke, senior vice-president at the Federal Reserve Bank of New York, identified six main problem areas in the over-the-counter derivatives market during a panel discussion on public policy at the International Swaps and Derivatives Association's…
PPIP participants possibly exempt from compensation limits
Asset managers that participate in the Public Private Investment Program (PPIP) with the US Treasury will probably be exempt from executive compensation limits imposed on private entities that have accepted government bail-out funds, Treasury secretary…
US Treasury failing on Tarp oversight, report finds
The US Treasury's $700 billion Troubled Asset Relief Program (Tarp) is vulnerable to fraud, abuse and profiteering, due to a lack of proper supervision, according to a highly critical report from the programme's inspector-general published today.
Liquidity regulation to cost £700 million and 15 man-years of work
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Short-selling ban increased volatility more than credit crisis
The bans on short selling imposed in the US and Europe in 2008 had more effect on market volatility in off-limit stocks and equity markets than the financial crisis itself, a new study has concluded.
US Wrap: Easter money is on US equity alongside rare commodity note
There were 15 new issues in the US market over the Easter period, with all but one offering exposure to US equity. New launches since last Thursday included a mix of reverse convertibles and accelerated growth or kick out structures linked to the S&P 500…
HKMA ring-fenced assets before Lehman collapse
The Hong Kong Monetary Authority (HKMA) had identified 19 foreign banks whose financial health could have had a negative impact on the Hong Kong banking system before the collapse of Lehman Brothers in September last year.