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10 November ECOFIN council conclusions on Solvency II and Capital Requirements
The Council adopted 'Solvency II' to reflect the latest developments in prudential supervision, actuarial science and risk management, and to allow for updates in the future. Solvency II is the recast of 14 existing insurance directives.
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IMF says that ‘Too Complex to Fail’ is the real issue and that size and linkages between firms are among the principles to consider
The IMF is warning that governments should consider the potential of financial institutions to severely damage global financial and economic stability. The goal is to create a framework to determine a firm’s importance to the financial system.
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IMF: experts warn financial system risks still high
An IMF conference is calling for a much better understanding of macro-financial linkages. The IMF is researching how the financial sector affects the broader economy, but global imbalances raise concerns about future stability.
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European Parliament special CRIS committee: phasing out of support measures not imminent
CRIS Committee Chairman Wolf Klinz said that the EU does need regulation, but that it must be a 'smart'. A regulatory framework should be created within which the actors are left to move with certain freedom.
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ECOFIN background note on exit strategies and support measures to the financial sector
ECOFIN ministers will discuss the methods and timing of the phasing out of bank guarantee schemes. Retaining state aid measures longer than necessary could lead to artificially maintaining banking activities that would not otherwise be profitable.
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US Banking Committee unveils plan for regulatory overhaul
“We will end 'too big to fail'", Committee Chairman Chris Dodd said, proposing an independent council of regulators and implementing a resolution system “to safely shut down large failing companies without destabilizing the financial system.”
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Fed Tarullo on supervising and resolving large financial institutions
US authorities propose a resolution authority to enable the government to wind down a systemically important firm in an orderly way, as part of sweeping legislation to overhaul financial regulation.
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FDIC Bair calls for new resolution system
Sheila Bair strongly supports requiring all systemically important financial institutions to prepare so-called 'living wills'. Bair also calls for a reserve fund and higher capital requirements, as proposed in the Basel II proposal.
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Britain and U.S. disagree at G20 on tax to insure against crises: UK proposes and US denies
UK proposals include imposing a new tax on financial transactions to support future bank rescues. The US trusts the IMF and urges waiting until it proposes a set of options next spring to ensure financial stability.
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SEC Shapiro asks Congress to leave FASB alone
SEC Chairman Mary Schapiro asked the House Financial Services Committee leadership not to put the FASB under the supervision of a proposed Federal Accounting Oversight Board instead of the SEC.
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IASB and FASB reaffirm convergence plans
IASB and FASB issued a joint statement and agreed to intensify their major joint projects. Their boards reaffirmed their commitment to bring about the convergence of their accounting standards.
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