Regulation
It is the supervision of the banks, not their structure, that is most important
A separation between retail and investment banking would in itself do nothing to correct bad management practices and would quite possibly fail in its aim to protect the public purse, Roger Alford argues.
An overemphasis on risk models was the key flaw in the regulatory architecture
Risk models are useful for banks’ risk managers, but regulators should beware, Brandon Davies notes
S&P unconvinced by resolution regimes
Rating agency says sovereigns will continue to bail out banks
US, Japanese regulators investigating UBS over Libor submissions
Swiss bank says subpoenas have been received from three US regulators
Markets wobble as Spanish downgrade, eurozone fears bite
Moody’s one notch Spanish downgrade exacerbates investor jitters a day before European Council meets to discuss EFSF, ESM, bailout renegotiations
Clarity, access to information key to financial market infrastructure oversight, say regulators
Consultation report from CPSS and Iosco says central banks, market regulators need clear, specific information to determine which financial market infrastructures need regulation
CPSS-Iosco proposes risk standards for CCPs
Central counterparties should be ready for failure of one or two largest customers, regulators suggest
European parliament embraces Tobin tax
Lawmakers throw their weight behind Tobin tax on financial transactions; say global difference of opinion should not stop Europe implementing levy
NY Fed’s Krieger: liquidity backstop for shadow banks vital
New York Federal Reserve executive vice-president Sandra Krieger stresses importance of backstop measures to reduce systemic risk arising from shadow banking activities
EBA’s stress test scenarios revealed: reports
Leaked documents set out scenarios for new round of European bank stress tests
Korea’s Kim outlines obstacles to financial surveillance
Bank of Korea governor Kim Choong-soo articulates difficulties in financial sector surveillance, global policy coordination
Zambia’s Fundanga on banking sector
Bank of Zambia governor Caleb Fundanga says giving central bank licensing authority was key
Fund’s DSK on meshing monetary and regulatory tools
Policymakers are looking to academia to help see how macroprudential policy might affect central banks’ independence, IMF managing director Dominique Strauss-Kahn says
Draft Irish law sketches resolution fund, living wills
Draft legislation from Irish government sets out rules on resolution fund that all banks must pay into, living wills; law includes strict penalties for failure
Iosco draws systemic risk roadmap for securities regulators
International Organisation of Securities Commissions sets out ways in which securities authorities can help control systemic risk
Richmond Fed’s Lacker on stress test disclosure
Richmond Federal Reserve president Jeff Lacker says appropriate level of stress test disclosure poses serious challenge
CNB to investigate energy company over early data release
Czech National Bank says it will look into premature release of annual results by Czech energy company ČEZ
Return to Glass-Steagall essential: Kansas City Fed’s Hoenig
Kansas City Federal Reserve president Thomas Hoenig says reform only scratches the surface without basic separation of investment, commercial banking activity for biggest banks
Higher capital rules don’t restrict capacity to lend: Bank’s Miles
Bank of England external rate-setter David Miles takes issue with linking tougher capital stance to reduced ability to lend; says Bank should not rush to temper inflation