News/Financial Stability
Plosser: focus on real, not nominal, rates
Philadelphia Federal Reserve president Charles Plosser suggests targeting interest rates to lean against strong asset-price growth
ECB approves Target2-Securities baseline price
European Central Bank’s Governing Council agrees to fix the transaction cost for Target2-Securities at 15 cents per transaction but attaches conditions
Irish woes may spread to other PIIGS
European Union action on Ireland’s bank debts points to fears over contagion spreading across peripheral Europe
Honohan expects IMF loan for Ireland
Central Bank of Ireland governor Patrick Honohan says his expectation is that IMF loan will be made available, likely to come to “tens of billions”
Posen: we can’t call bubbles
Bank of England external rate-setter Adam Posen cites empirical evidence showing difficulty in distinguishing asset-price booms from busts
Large pension funds a threat to financial stability – European Commission
European Commission says pension funds should also be classed as “too big to fail”
Hungary voices concerns over banking climate
National Bank of Hungary warns new government tax and appreciation of the Swiss franc will severely impair bank lending and its contribution to economic growth
Politics won't get in the way of Sifi plans: FSB's Draghi
Financial Stability Board chairman Mario Draghi says resolution regimes for systemically important banks operating across borders need not be bogged down in political tensions
IMF to pitch in on imbalances, but no clear agreement
G20 leaders call for Fund assistance in drafting “indicative guidelines” to frame global imbalances debate but stop short of definitive statement on currency dispute
G20 calls for bigger, better FSB to carry reform agenda
G20 leaders at Seoul summit identify areas in which further progress in needed, calling on Financial Stability Board to take the lead and drive reform; ask FSB to report on what extra resources it needs
FSB plans on Sifis win G20 approval
G20 leaders welcome reform packages to date, including fresh FSB proposal to tackle moral hazard posed by systemically important banks
Leaders applaud IMF reforms, boosted safety net
Fund's boosted flexible credit line, new precautionary credit line praised by G20 leaders of the IMF
IMF’s Viñals envisages financial system of the future
IMF director of monetary and capital markets José Viñals lays out vision of future financial system; says financial stability will need to be integrated in monetary policy decisions although price stability should remain central banks’ primary mandate
Focus on trade rather than stimulus: business leaders to G20
International Chamber of Commerce honorary chair Victor Fung calls on G20 to focus on boosting international trade rather than monetary stimulus to raise growth; currency tensions expected to feature heavily at Seoul Summit
No single structure for clearing industry: CPSS
Bank for International Settlements report on clearing industry says differences in market structures reflect diverse sets of risks to operations
Palestine launches new RTGS system
Palestine Monetary Authority Real-Time Gross Settlement system allows for developments in online and mobile banking
RBI reopens second liquidity line to prevent credit squeeze
Reserve Bank of India introduces second liquidity adjustment facility after growth in government savings absorbs liquidity in money markets
Fed's Fisher lambasts QE2
Dallas Fed president Richard Fisher claims QE2 will not create jobs, just spur speculation; comments highlight threats to Bernanke consensus when Fisher and others become FOMC voters in 2011
India’s PM backs QE2
Backing from Manmohan Singh follows attacks from other emerging markets
Debt restructuring framework for Europe essential: Deutsche Bank
Deutsche Bank co-head of European economic research Mark Wall says officials must create credible restructuring mechanism for eurozone sovereigns
Senators call for 'vigorous' enforcement of Volcker rule
Carl Levin and Jeff Merkley urge FSoc to follow “statutory intent” of rule to limit proprietary trading; define key terms and supervisory approach
Zhou, Meirelles attack QE2
Central Bank of Brazil president Henrique Meirelles and People's Bank of China governor Zhou Xiaochuan bash Federal Reserve’s latest stimulus programme
Risk USA: Paulson refused to save Lehman over 'bailout guy' characterisation
Former White House economist details civil war between Bush administration and US Treasury
FSB opens up to non-members with outreach proposal
Financial Stability Board to set up regional consultative groups to give non-members a presence in regulatory debate; move goes only half the way to correcting imbalance, DIFC chief economist says