News/Financial Stability
SEC moves to cut ratings out of registration requirements
US Securities and Exchange Commission proposes rule striking investment-grade rating condition from short-form registration process for companies issuing securities; move mandated by Dodd-Frank
Israel’s Fischer calls for international FX rules
Bank of Israel governor Stanley Fischer calls on IMF to draw up set of international rules on foreign exchange intervention
Bank’s inflation argument ‘fanciful’: ex-MPC’s Julius
Former Bank of England rate-setter DeAnne Julius says inflation expectations risk becoming unmoored; monetary policy acting for financial stability, ex rate-setter Tim Besley adds
Southern Sudan should adopt currency board: IMF mission chief
Fund’s Sudan mission chief Edward Gemayel says simplicity of currency board system advantageous for soon-to-be country; South preparing to adopt new currency
Fed wants right to choose which nonbanks pose systemic threat
Federal Reserve rule proposes that it will have discretion to determine whether nonbank financial firms come under Financial Stability Oversight Council’s watch on case-by-case basis
Spain should consider regulatory overhaul: FSB peer review
Financial Stability Board peer review calls for Spanish authorities to consider new regulatory structure once market turmoil has subsided; separate review of Italy also published
Tackling fiscal deficit a priority: Shirakawa
Bank of Japan governor Masaaki Shirakawa says Tokyo must not allow fiscal deficit imbalance to persist just because it has not yet been punished in bond markets
No new deal on bailout: Trichet to Dublin
European Central Bank president Jean-Claude Trichet says Irish politicians should not attempt to renegotiate terms of the EU-IMF bailout; opposition leaders critical of ECB’s role
Sri Lanka launches new banknote series
Central Bank of Sri Lanka series in 20 years; new edition contains several new advanced security features and first SLRs5000 denomination
Commercial real-estate levelling off: Fed director
Federal Reserve’s director of banking supervision and regulation Patrick Parkinson strikes cautiously optimistic note on health of commercial real estate sector
Cut Bank’s vote on macroprudential body, say lawmakers
Influential parliamentary committee calls for Bank of England executive directors’ votes to be transferred to external members, citing amount of power vested in central bank
ECB provides liquidity bridge, not bailout: Papadia
European Central Bank’s director-general for market operations Francesco Papadia stresses central bank’s liquidity assistance only short-term, says new European rescue vehicles will ease market concerns
BIS reviews macroprudential literature
Literature review published by the Bank for International Settlements finds gaps in assessing the effectiveness of macroprudential tools, studying interaction with monetary policy
Estonia euro information campaign a success
Survey on euro adoption information campaign shows 97% of respondents were made aware of switch to single currency
ECB launches new statistics book
European Central Bank volume covers future of central bank statistics
Central Bank of Egypt advises banks to close amid continuing protests
Some banks in Egypt close on Sunday and Monday on central bank guidance; Moody’s downgrades country on fears over political situation
Fed, Greenspan blamed for crisis by bulk of crisis commission
Six of ten members point finger at weak regulation and lack of awareness as to the goings-on in markets as causes of the crisis; four dissent, saying under-regulation claims overstated
Paper fault has not damaged business, says defiant De La Rue
Banknote printer insists fault which has hammered share price and fuelled takeover spat with French rival has not blighted business; discussions with RBI “ongoing”
FCIC report: the major findings
Risk summarises the major conclusions from the commission report
Ex-Vietnam governor linked to Securency bribery scandal
Payments from polymer-maker Securency alleged to have been channelled to fund education of former State of Bank of Vietnam governor Le Duc Thuy's child
Basel III should aim higher on capital targets: Bank research
Discussion paper published by Bank of England and co-authored by external rate-setter David Miles suggests Basel III common equity requirements are too low
LCH.Clearnet 'shocked' at Dodd-Frank capital requirement
Firm might not be able to live with 99% reduction in minimum capital requirement under Dodd-Frank Act, says chief executive
IIF’s Oudéa calls for G-20 taskforce for cross-border resolution
Institute for International Finance’s Frédéric Oudéa says G-20 taskforce will stir up political will for agreement on cross-border resolution
IMF uneasy on nagging weakness of eurozone’s banks
Fund’s Global Financial Stability Report and World Economic Outlook updates show concern over insufficiency of eurozone stress tests, links between banking and sovereign risks