Regulation
Senators table Volcker rule legislation
Bill would ban prop trading for large banks and impose limits for big non-banks
Buba’s Weber dismisses Volcker rule
Bundesbank president Axel Weber says Paul Volcker’s plan will have unanticipated effects and interfere with monetary policy transmission, says sticking with Basel II is best
Harsher stress tests described in new FSA risk outlook
New stress scenarios to test banks' resilience to double dip recession
FDIC’s Bair on US housing recovery
Federal Deposit Insurance Corporation’s Sheila Bair cautiously optimistic
US flip flops on cutting Fed’s oversight role
Senate committee is set to take all but the 23 biggest banks out of Fed’s regulatory ambit, diluted proposal will see Fed hang on to more of its responsibilities than reform bill initially said
Gudmundsson confident of Icesave deal despite country’s ‘no’ vote
Icelandic central bank governor Már Gudmundsson says a resolution will be reached with British and Dutch governments soon despite massive wave of public opposition to the plan
Longworth praises Canada’s astute liquidity management
Bank of Canada deputy governor David Longworth says central bank has been thoughtful and measured, assuring markets that support is available but ensuring that it is only used in dire circumstances
We won’t ban prop trading: British Lord
British business secretary Peter Mandelson says Volcker rule is “too difficult” even as Washington works to turn it into law
Fed’s Fisher: break up the big banks
Dallas Federal Reserve’s president gets tough on those deemed too big to fail
China moots legalising some private lenders
A director-general of the People’s Bank of China says the central bank is in favour of lifting rate caps and legalising some micro-lenders
UK FSA’s penalties policy could see enforcement fines treble
British regulator’s announces new structure for penalty-setting
NZ makes credit ratings mandatory for non-banks
Governor Alan Bollard deems ratings useful for investors
Fed is investigating Goldman, hedge funds: Bernanke
Federal Reserve chairman Ben Bernanke says the central bank is looking into cross-currency swaps carried out by Goldman Sachs alleged to have helped Greece hide the extent of its debt
Europe works to cut banks’ reporting burden
The European Central Bank and Committee of European Banking Supervisors publish a system that will eliminate double reporting and improve quality of data
Libya opens doors to foreign banks
Libyan central bank welcomes overseas institutions interested in setting up a subsidiary, says ongoing reforms and strong economic performance offer great prospects for banks
FSA’s Turner queries faith in deep and liquid markets
Britain’s top regulator calls for a conservative approach to liquidity, arguing that excessive financial activity is liable to do more damage than good
British regulator asks for 10% more funds
Financial Services Authority puts bulk of responsibility to pay up on the bigger banks
British PM heralds global bank levy
British prime minister Gordon Brown flags growing consensus among leaders on a global bank tax following Obama proposals
Community banks remain crucial for US economy
Chicago Federal Reserve summarises its conference on the impact of the financial crisis on community banks
Ex-Bank deputy wants shift in monetary policy remit
Former Bank of England deputy governor and Financial Services Authority chairman Howard Davies calls for central banks to broaden ambit of monetary policy; insists supervision best handled outside the central bank
BIS’s Caruana: central banks up to stability task
Bank for International Settlements’ Jaime Caruana says crisis highlighted the prominent role central banks should have in financial stability policy
Some microfinance rules to mirror banks’: Basel
Basel Committee on Banking Supervision says some of its original principals on effective banking supervision will broadly apply to microfinance with a little tweaking
UK FSA chief executive in quit surprise
Financial Services Authority’s Hector Sants surprises City with decision to depart in the summer after three years as chief executive