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Salgado: Crisis prevention instruments are not an insurance policy permitting banks to take risks
The implementation of financing instruments that are maintained by the banks themselves, are being considered to design a crisis prevention strategy, Spanish Economy Minister Salgado said and announced that the EC plans to propose an EU resolution crisis framework in October.
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Commissioner Barnier: The EC needs to close the regulatory loopholes and to take action against non-cooperative jurisdictions
In an interview published in the April DG MARKT magazine, Barnier was optimistic on the AIFMD vote and said that with a bit of good will on all sides a final agreement is possible before the summer. The Commission will also focused its work on promoting the standardisation of derivatives.
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CRIS Committee Hearing on exit strategies: Choosing the right ways out of the crisis
"We do not want a system that creates crisis",Columbia University Professor Griffith-Jones said. He argued that we need a financial system which is sustainable and able to withstand future shocks. This means better regulation and simple rules for hedge funds, derivates and off-balance banking sheets
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ECB’s report on the lessons learned from the crisis regarding the functioning of European financial market infrastructures
The Eurosystem identified procedures and rules that might be enhanced to cope better with similar events in the future. The report focuses on information flows following a default, behavioural factors and issues relating to the OTC markets.
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SWIFT: Spanish Presidency guarantees no mass transfer of financial data to USA
The concerns of the EP on a new agreement for transferring financial data to the United States will be taken into account in the negotiations, especially the main fear expressed by MEPs over a possible "wholesale" transfer of data, Secretary of State for the EU Diego López Garrido said.
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EBF concerned over accumulation of proposed measures and impact on the real economy
European banks consider essential that the financial regulatory package as a whole - including the results of the calibration - is made available for further consultation and assessment. It also stresses that all reforms must be implemented progressively and simultaneously worldwide.
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JSDA warns against inappropriate uniform regulations on capital requirements
The Japan Securities Dealers Association is concerned that uniform regulations excessively focused on capital requirements without proper consideration of the differences among jurisdictions may lead to skewed risk-taking incentives and impair the stability of real economies and financial markets.
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EFR letter to G20 finance ministers concerning the recent regulatory developments
EFR believes that authorities should have a sufficiently large arsenal of crisis management tools to deal with the successive stages of early intervention, recovery, and resolution, or insolvency so the financial institution failure can be managed in an orderly way to maintains financial stability.
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The EU evaluates the possibility of supervising national budgets
Speaking at the informal ECOFIN Council meeting in Madrid, Commissioner Rehn explained that the idea is to create a "European semester for designing economic policy", between January and July, so that for next spring Brussels can know the main budgetary lines of each country for the coming year.
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IMF: Government borrowing is rising risk to world financial system
The biggest threats for advanced economies have moved from the private to the public sectors. Governments not only took on many of the bad assets from private institutions, they also face heavy borrowing needs for the next few years due to the continuing recession.
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IMF report to G20 suggests tax on bank balance sheets
The report reveals that a “financial stability contribution” would work best if it were levied on bank balance sheets, specifically their liabilities. The IMF suggested each country would want to raise between 2 per cent to 4 per cent of its gross domestic product over the long term.
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IMF and FSB hold joint conference on implementing G-20 recommendations on information gaps
The conference recognized that some of the most challenging recommendations to implement - such as measuring aggregate leverage and maturity mismatches, and gaining a better understanding of financial networks - were among the most relevant for financial stability analysis.
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US Senate approves tougher rules on derivatives trading
The Senate approved the so-called Lincoln’s bill that imposes tougher rules for derivatives by introducing higher transparency requirements and providing strong oversight of market participants. Congress is expected to pass a far-reaching overhaul of the financial regulatory system soon.
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SEC charges Goldman Sachs with fraud in marketing of CDO
Goldman Sachs failed to disclose to investors vital information about the CDO, the SEC states and charged the company and its vice president Fabrice Tourre, alleged to be principally responsible for the ABACUS 2007-AC1, for defrauding investors.
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