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14 May 2009

This week in "Brussels"

© 2009Jump directly to articles on:-
Financial Services PolicyBankingSecuritiesInsurance
Corporate GovernanceCompetition issues in financial Services
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Articles from 07 May 2009 - 14 May 2009
Financial Services Policy Back to top 

Single Market News No 54 – Financial Crisis
The newsletter includes an interview with David Wright on the causes of the financial crisis. “As far as we know, our banks and financial institutions purchased at least one trillion Dollars worth of US sub-prime assets and probably a lot more.  View Article

US Treasury proposal on OTC derivatives
Treasury Secretary Geithner unveiled a plan to improve oversight of derivatives markets. The proposal includes federal oversight for major dealers as well as requiring credit default swaps and other over-the-counter derivatives to be traded on exchanges.  View Article

US stress test shows positive results
None of the 19 banks subjected to government stress tests are insolvent, Timothy Geithner said. However, roughly half the firms need to enhance their capital structure to put greater emphasis on common equity.  View Article

FASB additional guidance on fair value of alternative investments
The FASB provides additional guidance on determining the fair value of certain alternative investments, such as interests in private equity, venture capital, and hedge funds.  View Article

FASB supports draft principles for financial instruments with characteristics of equity
The FASB discussed and expressed support for a set of draft principles that could be used to distinguish between equity and liabilities and a related set of decision rules to operationalize those principles.  View Article

Bernanke calls for more macro-prudential approach to supervision
Our regulatory system must include the capacity to monitor, assess, and address potential systemic risks within the financial system including providing a resolution mechanism to safely wind down failing, systemically important institutions.  View Article

BoJ Shirakawa: New architectures and rules in themselves not sufficient to prevent crisis
"Financial products, institutions, and markets will continue to evolve rapidly", Shirakawa said. "Rules, especially global rules, which require due process before implementation, will inevitably be behind the curve".  View Article

Banking Back to top 

McCreevy calls for solution on impaired assets problem
"Whether Governments decide to create bad banks, good banks, special vehicles or even nationalise them it is imperative that some solution is found to the non performing assets on banks balance sheet", McCreevy underlined.  View Article

UK to strengthen resolution arrangements for investment banks
The report outlines the Government’s thinking on the changes to market practice, regulation, and insolvency law that might be needed to deal with any future failure of a major investment bank.   View Article

BIS releases new cover payments guidelines
The paper provides guidance for situations in which one or more intermediary banks are located in a jurisdiction other than where the bank of the originator and the bank of the beneficiary are located.   View Article

CEBS's statement on stress testing exercise
CEBS states that it is not a stress test to identify individual banks that may need recapitalization, as the assessment of specific institutions' needs for recapitalization remains a responsibility of national authorities.  View Article

Securities Back to top 

LCH.Clearnet looks to deal with bidding consortium
LCH.Clearnet has confirmed that it received a bid from the consortium last week. However, the clearer has been working on its own plan to buy out its 123 shareholders and convert into a user-owned utility.  View Article

LCH.Clearnet agrees competitive clearing deals
LCH.Clearnet agreed new clearing offerings for European MTFs Bats Europe, Chi-X, Turquoise and Nyse Arca Europe. The moves are a boost to brokers and EU parliamentarians who have long complained about the cost of clearing in European equities trading.  View Article

Goldman Sachs, Morgan Stanley and UBS in European dark pool pact
The arrangement is designed to combat growing fragmentation in the region by allowing algorithmic trading orders received by each firm to interact with the European equity liquidity found in their dark pools.   View Article

Insurance Back to top 

CEIOPS Report and Roadmap on Convergence
The Report provides an overview on achievements of the ECOFIN roadmap and a summary on the status of work undertaken. The Roadmap presents the different CEIOPS work streams for 2009.   View Article

Corporate Governance Back to top 

IASB Smith - US to adopt IFRSs in the next five years
"Those countries already adopting and committing themselves to IFRSs will not accept a situation where the US remains outside the system indefinitely, yet has a seat at the table”, Smith said.  View Article

McCreevy criticizes slow IASB process
There is growing concern among Finance Ministers at the perceived slowness of the IASB in responding to the systemic crisis, Mccreevy said, underlining that the recent amendments to US GAAP could be at a disadvantage for IFRS users.  View Article

Competition issues in financial Services Back to top 

Commission approves extension of French scheme for refinancing credit institutions
The Commission found that the measures were well targeted, proportionate, and limited in time and scope and concluded that they represent an appropriate means of remedying a serious disturbance in the French economy.   View Article

Commission approves aid package for German bank WestLB
The Commission approved the €5 billion risk shield for WestLB and accompanying measures. Germany committed to change the bank's ownership structure through a public tender procedure before the end of 2011.   View Article

Commission opens in-depth investigation on BayernLB and Hypo Group Alpe Adria
The Commission will evaluate in detail whether the planned measures are capable of restoring the long-term viability of BayernLB and HGAA, and whether measures should be put in place to minimise potential distortions of competition created by the aid.  View Article

Commission approves additional aid measures for Fortis
The Commission approved additional aid measures from the Belgian and Luxembourg States stemming from amendments of the agreement between Fortis Holding, BNP Paribas, Fortis Bank and the Belgian and Luxemburg authorities.   View Article

Commission approves recapitalisation of Allied Irish Bank
The Commission approved an emergency recapitalisation worth €3.5 billion that the Irish authorities intend to grant to Allied Irish Bank. The shares to be issued will qualify as 'core tier 1 capital'.  View Article

Commission approves Latvian support for JSC Parex Banka
Latvia proposes to strengthen the bank's capital basis with the aim of achieving a capital adequacy ratio of 11% by issuing ordinary shares, qualifying as Tier 1 capital and subordinated term debt qualifying as Tier 2 capital.  View Article

Commission authorises further capital injection for Caisse d'Épargne and Banque Populaire
The Commission authorised a further €2.45 billion capital injection into the institution to be created by the merger between the Caisse d’Épargne and Banque Populaire groups, provided by the French Government.  View Article

© Graham Bishop

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