Europe
Haircut fears push up bank CDS prices
Spreads on the credit index for senior European financials widen as EU releases burden-sharing consultation paper
EU pledges to make bailout vehicle permanent
Meeting of European Union leaders concludes with a pledge to create permanent rescue fund for the eurozone
Brussels forges ahead with Sepa end-date proposal, despite differences
European Commission proposes deadlines for national credit and debit transfers to migrate to Sepa system; move could divide stakeholders
European banks could get slightly different version of Basel III: Basel Committee’s Wellink
Netherlands Bank governor and Basel Committee on Banking Supervision chairman Nout Wellink says “minor changes” possible to European version of Basel III
ECB - Monthly Bulletin (December)
European Central Bank’s December 2010 bulletin shows recovery of Central and Eastern Europe has been hampered by macroeconomic imbalances
Merkel enraged at vote to scrap US-EU Swift data deal: WikiLeak
Leaked wire from US embassy in Berlin says Germany’s Chancellor Angela Merkel was furious at German MEPs' decision to reject Swift data sharing deal with United States
Nordea chief to head European banks' trade body
European banking lobby group appoints Nordea chief executive Christian Clausen as president; Clausen takes over from ex-UniCredit chief Alessandro Profumo
Budapest sets sights on Hungary’s rate-setting council
Hungarian government seeks amendment giving a parliamentary committee full control over majority of appointments to central bank’s Monetary Council
Norges Bank: universal banking enhances development of corporate debt markets
Norges Bank study shows that universal banking model promotes successful securitisation of corporate debt markets
Islamic finance poses challenges for central banks: Bank of Italy
Bank of Italy study says underdeveloped market for Islamic finance creates problems for central banks and regulators
Michael Bordo: Fed failed as lender of last resort
Federal Reserve did not fulfil its role as lender of last resort
Bank of Italy’s Visco says Europe needs long term debt resolution plan
Bank of Italy deputy director general Ignazio Visco says successful fiscal consolidation in Europe will require voter backing
Luxembourg’s Mersch condemns Basel III bias
Central Bank of Luxembourg governor Yves Mersch says Basel III will be more detrimental to European banks than US lenders; echoes bankers’ concerns on lending to small and medium enterprises
Cebs says work on supervisory colleges is accelerating
Cebs secretary-general Arnoud Vossen, in an interview with Operational Risk & Regulation, says work on improving supervisory colleges is speeding up
Esma could undermine City of London: LSE's Rolet
London Stock Exchange chief executive Xavier Rolet tells influential parliamentary committee new European Securities and Markets Authority could risk handing control of UK regulation to Europe
Britain unveils sweeping, cross-border bank levy
UK government publishes draft bank tax law which will affect domestic banks operating overseas and foreign bank operations in Britain; proposal highlights international disunity
FSA worried over excessive EU rules while firm on proportionate solution for hedge fund pay
UK regulator worried heavy handed rules will drive hedge funds out of Europe, depriving supervisors of information on their European activities
Growth in European cashless payments subsides
European Central Bank payments statistics shows amount of non-cash payments increased but at a slower rate than in previous eight years
Russia inches back toward dollar assets
Bank of Russia report shows percentage of dollar assets increased by end 2009, reversing trend set in two previous years; central bank also upped sovereign debt holdings and risk appetite declined
Ireland’s Honohan defends Europe’s banks
Continent’s stress tests have lifted some of the doubt over banks’ underlying health, Central Bank of Ireland governor Patrick Honohan says
Nordic and Baltic regions strike financial stability deal
Eight Nordic and Baltic countries sign Memorandum of Understanding on cross-border financial stability and crisis management
Norway’s wealth fund slumps to first loss in a year
Government Pension Fund–Global posts $25 billion loss for first quarter; fund’s equity portfolio takes a beating, led by BP shares
ECB flags concerns over new capital rules
New capital rules may incentivise banks to dump risky assets on central bank
Greece passes first hurdle of bailout programme
European-IMF review of Greek economic programme says country is on track to receive second tranche of funds