Financial Stability
Brussels seeks clarity on solving national regulators’ spats
European Commission calls for amendments to laws stating what the role of new supervisory authorities will be in resolving disputes between national regulators
FSoC moots amendments to 'too big to fail' law
Financial Stability Oversight Council suggests changes in accounting standards, language of reform law barring firms from holding more than 10% of industry’s total liabilities
ECB opines on Basel countercyclical buffer
Central bank cautions against mechanical application of credit-to-GDP ratio for calibration
Sweden’s Ingves draws roadmap to macroprudential mandate
Riksbank governor Stefan Ingves discusses measures in governance, implementation and econometrics needed for successful macroprudential policy
NY Fed paper highlights discount window stigma
New York Federal Reserve study finds evidence of stigma attached to bank lending when accessing funds from discount window during crises
Swiss authorities ink deal on crisis collaboration
Swiss National Bank, finance ministry and regulator sign memorandum on supervisory cooperation
Bank of Finland research on moral hazard effect of collateralised loans
Bank of Finland study examines effects on moral hazard when collateral values fluctuate
Euro counterfeits drop by 5.9%
European Central Bank statistics show 364,000 forged euro banknotes recovered in second half of 2010; €50 note remains most popular bill to fake
Basel III will cause ‘financial Darwinism’: BaFin’s Sanio
Top German regulator Jochen Sanio says Basel III will squeeze weaker banks, spur formation of large banking groups that will pose more systemic risk
Political instability hampers growth: IMF research
Fund study shows political instability significantly reduces economic growth
PBoC allows Chinese firms to invest renminbi abroad
People’s Bank of China to allow domestic banks to settle investments abroad in renminbi as part of cross-border investment pilot
Gold could hit $1,600 in 2011, say analysts
Commentators say investor appetite for the precious metal will continue to soar as concerns over US economy, eurozone sovereign debt issues, persist
EBA plans new round of stress tests
New European Banking Authority announces second round of stress tests for European banks at opening meeting
Oberthur seeks equity house support in De La Rue takeover bid: reports
French banknote firm Oberthur reportedly in talks to issue private equity houses with convertible bond to fund De La Rue acquisition
Senior officials for new European regulators named
European regulators in Paris and Frankfurt appoint a number of new heads and board members
Portugal succeeds at auction but fails to sway analysts
Portugal sells $1.6 billion worth of government debt at auction, but commentators remain wary of fundamentals
Fed uncooperative and audit insufficient, claims influential senator
US senator Bernie Sanders dissatisfied with Federal Reserve’s response to further questions on audit of emergency lending facilities
IMF paper identifies de-dollarisation drivers in South America
Fund study says de-dollarisation of deposits and development of local capital markets key factors in Latin American countries
Barclays’ Diamond argues case for universal banking
Barclays' chief executive Bob Diamond adamant bank’s model funds cheaper lending and is less risky
Oberthur given takeover deadline as De La Rue spat intensifies
French banknote printer told to “put up or shut up” by 7 February; ruling comes on the heels of efforts to force De La Rue to clarify relationship with RBI, failed November takeover bid
High inflation stirs banknote shortage in Argentina: reports
Inflationary pressures in Argentina create shortage of high-denomination banknotes forcing long queues at cash machines
Spain’s monetary policy could not have prevented housing bust: IMF
Fund study says retaining the peseta would not have necessary prevented the housing collapse in Spain over the last decade
Trichet proposes macroeconomic scoreboard system
European Central Bank president Jean-Claude Trichet outlines ideas for a new macroeconomic framework for euro area
It's the forest stupid
Dodd Frank fails to deal with systemic risk, former chairman of the Federal Deposit Insurance Corporation William Issac argues