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Michel Barnier: regulatory loopholes on financial services need to be filled
At a British Bankers' Association dinner in London, Barnier stressed that it is essential to restore confidence in financial markets. This requires, among other things, better supervision, well capitalized institutions and stronger risk management systems.
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EP CRIS Special Committee: financial regulation and supervision under spotlight
Banque de France Governor Christian Noyer stressed a need to update CRD, reform credit rating agencies and harmonize definitions of financial instruments. He warned that “To draw up a list of systemic financial institutions could be counterproductive as it would institutionalise moral hazard”.
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CRIS committee on impact of crisis: don't lump all new member states together, experts warn
Experts argued that, on the one hand, the dominant presence of foreign banks contributed to pre-crisis economic growth but, on the other hand, their policies and "aggressive behaviour" were also partly responsible for the build-up of “pre-crisis vulnerabilities” like the huge house price boom.
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ECB: statement on additional measures taken by Greek government
Cutting public expenditure and adjusting public sector wages are key signals both for long-term fiscal sustainability and for substantially enhancing the price and cost competitiveness of the Greek economy. The ECB appreciates the Greek government’s recognition that these measures are imperative.
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Europe 2020: EC proposes new economic strategy for Europe
Europe 2020 aims to get the EU out of the crisis and prepare its economy for the next decade. The EC has identified key drivers for growth such as fostering knowledge, innovation, the digital society and making EU production more resource-efficient, while boosting competitiveness.
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Lord Turner on “too big to fail”: Obama/Volcker proposals are seriously being considered
He presented possible solutions including higher equity requirements for larger banks, using resolution and recovery plans to encourage them to structure themselves into separable legal entities, either by geography or by function.
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Luxembourg Financial Industry Federation (PROFIL) publishes financial sector codes of conduct
Luxembourg suffers from two contradictory reputations. For some, finance is an unregulated realm governed by the free market law of the jungle. For others, it is the regulated sector par excellence. With these new codes, Luxembourg financial centre reiterates its adherence to the business ethic.
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FSA finalizes new framework for financial penalty-setting
The new policy shows the FSA's on-going commitment to the principle of credible deterrence, as well as the improvement of standards within firms in relation to market misconduct and dealings with customers.
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MEP Sharon Bowles speaks out on £1.3 billion RBS bonuses
"It is unacceptable that banks bailed out by the taxpayer continue to pay out bonuses when they are still reporting losses. We need to rethink remuneration policy as a whole, reduce the incentive to take excessive risk and stop rewarding making easy money”, the ECON Chair said.
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BIS Quarterly Review: 'International banking and financial market developments'
It attributes the mid-January to mid-February fall in asset prices, among other factors, to the unevenness of the global economic recovery and concerns about sovereign credit risk in the light of large fiscal deficits.
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IMF rethinks its role in post-crisis world
The IMF has issued a paper on what it should do to promote global stability and how its membership might best support that process. The aim is not to put forward concrete proposals, but to float ideas which will stimulate debate.
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IMF: Europe is learning lessons from the crisis
Director of the IMF’s European Department Marek Belka stressed that the EU must ensure that the extraordinary support provided to banks and other financial institutions does not turn into an addiction. Meanwhile, the need for fundamental reforms in the financial sector should not be forgotten.
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FED: Tarullo on financial regulatory reform
“The regulatory reform will not come to a close once the new legislation has been enacted; the work of containing systemic risk and the too-big-to-fail problem will need to be adaptive. The ideas and criticisms of those outside the regulatory agencies will remain essential to this work”.
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