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Statement by President Barroso on Greece: Final decision needs to be taken
Barosso stressed that all euro-area Member States are finalizing procedures that will allow them to provide financial support to Greece. The euro-area Member States, the Commission, the ECB and the IMF are all determined to guarantee the overall financial stability of the euro area.
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Market Discipline on Eurozone Public Debt - amend SGP Regulation and CRD IV
Apply higher capital requirements and limit “large exposures” for banks lending to eurozone Member States that fail to implement Excessive Deficit Procedure recommendations by Council. Easily structured via Regulation and Directives without Treaty changes.
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ECON committee discussed amendments on new ESAs
The EP is heading for a clash with national governments over reforms on financial market supervision. The new EU supervisory system is planning to be up and running by 1 January 2011. MEPs proposed that the new EBA should direct how national regulators supervise banks that present a systemic risk.
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ECON committee: ECB Vice-President on Greek fiscal measures and Eurozone risks
Mr Papademos justified the progressive scaling back of the ECB's non-standard measures, which have been put in to place to deal with the worst effects of the financial crisis. The ECB also welcomed the tightening of the Stability and Growth Pact rules and the bolstering of economic surveillance
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Barnier warned that time is running out to put in place the new ESAs
Some of the former fundamental assumptions about the world of finance were too simplistic and wrong, Barnier said and called for a new order in financial services.The EC will issue proposals on liquidity management and leverage ratios by the end of 2010.
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IMF: Strategies needed to tackle huge government debt levels
Speaking at a conference on fiscal strategies after the crisis in Washington, IMF first Deputy Director Lipsky proposed a plan for fiscal consolidation based on stabilizing age-related spending as a share of GDP and raising additional revenues in an efficient and equitable manner.
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IMF: More attention to the enforcement of rules needed
More effort is needed to look at the supervisory side, IMF Managing Director Dominique Strauss-Kahn said in Washington. “You may have the best possible regulation, but if it’s not enforced and you don’t have supervision it’s as if you did nothing”, he warned.
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Kathimerini: Athens upbeat after aid talks with IMF chief
As officials from the Greek government and the IMF sought to send out reassuring signals about the immediate activation of a multibillion-euro rescue package for Greece, strong skepticism persisted in Germany and elsewhere about the prudence of dispensing aid without serious consideration.
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CEA messages ahead of G20 Finance ministers' meeting
CEA emphasized that the business model of the insurance industry is fundamentally different from banking, which relies on short-term deposits or short-term debt to cover long-term lending. CEA called for the recognition of different financial services business models.
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G20 recommitted to regulatory reforms
G20 members recommitted to developing by end-2010 internationally agreed rules to improve both the quantity and quality of bank capital and to discourage excessive leverage. The new rules will be phased in by end-2012 and shall be complemented by strong supervision.
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Sobel: US and EU fully agree on tough and rigorous oversight regime for AIFMs
Sobel warned that there is no doubt about the establishment of such an oversight regime. However, this needs to be aligned with the principles of non-discrimination and a level playing field. He also reiterated the need for a comprehensive regulation of OTC derivatives markets.
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SEC Walter criticises confusions on regulatory proposals of the OTC derivatives market
We do not need regulation that makes the regulatory system even more complicated and incoherent, the Commissioner criticised the Lincoln bill. Instead, all securities-related swaps should be regulated by the SEC and all commodities-related swaps should be regulated by the CFTC, Walter proposed.
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The Hill: Senate starts debate on Wall Street reform bill on Thursday
On Wednesday Senate Republicans said they had reached a key agreement with the Democrats, paving the way for a debate to begin on a sweeping Wall Street reform bill. Strong disagreement still exists over the new consumer financial protection office.
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NYT: Senate blocks debate on Financial Oversight Bill
The US Senate voted on Monday to block the bill from reaching the floor for debate. Republicans said the bill needs substantial changes and accused Democrats of rushing the overhaul of the financial regulatory system. However, both sides say they expect the overhaul eventually will be approved.
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IIF criticized IMF proposals for ex-ante levy of financial institutions
The IIF sees no merit in the idea that any levy on the banking system should be paid into general revenue. In contrast, an ex-ante tax would contribute to moral hazard and weaken market discipline, and would make it even harder for financial firms to fail, it criticizes in a letter sent to the G20.
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