Financial Regulation >>>

    Prudential CEO Urges Equivalence for Solvency II

    Prudential Plc Chief Executive Officer Tidjane Thiam said last week that some versions of the European Union’s Solvency II regime currently being discussed by regulators continue to be “completelywrong.” Thiam objects to proposals that would force EU insurers to hold extra capital with their U.S. divisions if regulators conclude the Solvency II Directive is not [...]

    Basel Rules Deliver ‘Body Blow’ to American Economy, Require $60 Bln More in Bank Capital

    Wayne Abernathy, executive vice president of financial institutions, policy and regulatory affairs at the American Bankers Association, says the Basel global capital standards are a bad fit for the U.S. and will require American banks to add at least $60 billion to their already “high” capital levels. “If imposed without adjustments the new Basel rules [...]

    Banks Comply With Basel III Before Final Rule

    U.S. banks, working to comply with Basel III rules before they are final, are attracting new retail deposits to meet liquidity ratios and eliminating trust-preferred securities that will no longer count toward capital requirements, according to regulatory consultants. The Basel III guidelines, which will be phased in between January 2013 and 2019, call on regulators [...]

    Resolution Planning Using Living Wills Becomes a Necessity After Financial Crisis

    On July 1, nine of the largest U.S. financial companies and foreign financial companies with operations in the U.S. filed living wills required under a joint rule adopted by the Federal Deposit Insurance Corporation and the Federal Reserve. Now that the initial plans have been filed, the real work begins.   One of the clear [...]

    Some Buy-Side Firms Not Prepared for New Derivatives Rules, May Avoid Swaps Trades

    A State Street Corp. survey finding that more than one-third of buy-side firms don’t have the type of collateral considered ideal for swaps trading under new rules may signal that some plan to avoid swaps trades entirely, a State Street director said.   Thirty-seven percent of the survey’s respondents said they don’t have the high-grade [...]

    Citi Would Have Faced $3 Bln Fine Under New Bill

    Citigroup Inc. would have faced up to $3 billion in fines to resolve regulators’ claims that the New York-based bank misled investors – rather than the $285 million that the U.S. Securities and Exchange Commission is seeking – under a bill two senators introduced this week. The bill by Sens. Chuck Grassley, an Iowa Republican, [...]

    Regulators Ignoring Dodd-Frank Rules That Allow Them to Break Up Big Banks

    Phil Angelides, president of Riverview Capital Investments and the former chairman of the congressionally appointed Financial Crisis Inquiry Commission, tells Dana Wilkie that regulators are ignoring Dodd-Frank provisions that give them power to break up the nation’s largest banks. Q: Why do you want regulators to break up big banks? A: I have a growing [...]

    JPMorgan Among Six Banks Moving Toward Volcker Rules, Curry Says

    Six of the largest U.S. banks have already taken steps to shut down their proprietary trading operations in anticipation of a ban known as the Volcker rule, U.S. Comptroller of the Currency Thomas Curry said. In a letter to U.S. Representative Carolyn Maloney, Curry identified the six banks as JPMorgan Chase & Co., Bank of [...]

    Banks Urged to Publish Living Wills’ Global Plans

    Two members of a Federal Deposit Insurance Corp. advisory committee are challenging major U.S. banks that recently submitted living wills to publish the part of their plans that describeshow they would handle cross-border liquidation.  Simon Johnson and Anat Admati, members of the FDIC’s Systemic Resolution Advisory Committee, challenged the banks after they failed to explain [...]

    Libor Fines, Litigation Costs May Be Dwarfed by Economic Toll From Loss of Rate Benchmark

    Commentary by guest columnist Frederick Cannon Federal Reserve Chairman Ben Bernanke’s comments on Tuesday that the Libor scandal “is a major problem for our financial system …we need to address this,” may go down as another understatement by a Fed chairman. Libor underpins the financing of companies throughout the globe, and a loss of confidence [...]

Bloomberg BRIEF Newsletters