Systemic risk
Dodd-Frank sends banks on journey into the great unknown
The passing of the Dodd-Frank Act into US law signifies profound changes for banks and regulators. But how they should prepare now for the new legislation is still far from certain
FDIC creates new units as US regulators expand for Dodd-Frank systemic oversight
US regulators are hiring more staff in preparation for Dodd-Frank changes
Basel III watered down by politics and not fit for purpose, says CLSA risk chief
The most recent draft of the Basel III proposals has been watered down by politics, according to an Asian risk officer.
Asia Risk 15: Ryozo Himino, Japan FSA
Regulators are preparing to introduce a glut of new regulations to improve the resilience of the financial system. But this should go hand in hand with the use of policy tools to prevent asset price bubbles, argues Ryozo Himino
Dodd-Frank Act signed but uncertainty remains
New legislation means more study and rule-makings needed, creating operational risks for banks
Pass the microphone: CFTC’s Scott O’Malia to CME Group’s James Newsome
This month, Scott O’Malia, a commissioner of the US Commodity Futures Trading Commission, puts his questions to James Newsome, member of the board of directors of the CME Group and a former CFTC chairman
Experts examine US power clearing and netting needs
As the US Congress moves to boost derivatives clearing requirements, an industry panel has called for regulators to investigate a move towards clearing and netting across US power markets and to clarify the legal uncertainty in the area
G-20 pursues systemically important banks, despite abandoning levy
Banks will still face new constraints as the G-20 continues with plans to prevent them from posing a systemic threat.
Too networked to fail?
The need to craft special treatment for banks that are too big or interconnected to fail has long been a concern for regulators, but of equal importance is the challenge of identifying which institutions should be subjected to such measures. How can…
Harbouring doubts on close-out netting
Derivatives safe harbours are viewed as crucial to close-out netting. However, they are under siege from the US Congress, where legislators have tried to undo the protections given to market participants when a counterparty defaults. Mark Pengelly reports
Bankers hope for derivatives reprieve under US Dodd Bill
Banks lobby to avoid spinning off swaps desks under planned regulatory reform
Goodhart: CoCos 'not silver bullets' for bank capital reform
Regulators should ban dividend payments or curb banker pay to conserve cash, instead of championing Cocos, says economist
Irish regulator warns of post-crisis surpervisory scepticism
The financial regulator, Matthew Elderfield, has warned Irish insurers that he will be more interventionist, rather than wait for a market failure to manifest itself and then cautiously weigh up the costs and benefits of a response.
Sovereign CDSs cause systemic concern
Increased protection selling on sovereigns raises fears about systemic risk
US regulators call for circuit-breakers but exchange risks remain, says expert
Proposed rule changes from Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (Finra) are a good but incomplete solution to operational risk within exchange infrastructures
Systemic risk regulators should direct policy not just give warnings, says HSBC's Haswell
Past experience suggests the new financial stability bodies should direct regulatory policies, not just warn about instability
FSA’s Huertas says ending ‘too big to fail’ is the top regulatory issue
Regulators mull over intervention options for systemic risk firms
AIFM provision threatens to change the risk profile of depository banks
Article 17 of AIFM seeks to impose strict liability on depository banks that could have far-reaching ramifications for the industry
Data management key to understanding systemic risk, says expert
Systemic risk management will require enterprise-wide information gathering
Breaking up banks could increase instability, research finds
Banking systems with small numbers of large banks are more stable and less likely to undergo crises, according to World Bank and NBER economists.
IMF weighs in to too-big-to-fail debate
Report looks at current proposals to deal with systemic risk and bank failures
FSA surprises UK banks with tougher stress tests
Operational risk to be included in future stress tests by the UK regulator.
Surviving the fallout
As regulators rush to reassess international banking regulations, insurers are also at threat of seeing more stringent regulations imposed on them on the basis that they are systemically risky. But the industry is fighting back. John Ferry reports