News/Financial Stability
Ireland’s Elderfield rules out senior debt haircuts
Holders of senior debt must not be forced to shoulder losses, but issuing banks could negotiate with them, says Central Bank of Ireland’s Matthew Elderfield
Recovery has lost steam and risks remain high, IMF warns
IMF's latest financial stability report strikes a cautionary note about the stalled economic recovery
US Treasury slashes forecast for cost of Tarp
US Treasury estimates cost of government bailout at $30 billion, less than a tenth of original forecast
Brussels crafts principles for bank account access
European Commission consults on principles to ground law granting universal access to basic bank accounts; 6% of adults do not have a bank account
Anglo bailout prompts Ireland downgrade
Fitch knocks Irish debt one notch; says higher bailout cost will impair fiscal consolidation plans
Paper problems delay release of new $100 note
Federal Reserve says sporadic creasing of paper on new banknote will setback release of new $100 bill
Swiss to make UBS and Credit Suisse pay for systemic status
Swiss commission proposal beefs up Basel III for Credit Suisse and UBS with 19% capital requirement and other measures to tackle 'too big to fail' problem
Bank of Spain's Roldán highlights Basel III flaws
Basel III’s architecture, hybrid capital and liquidity buffers among potential pitfalls; views shared by BaFin's Sanio
BaFin's Sanio: no fix for cross-border failure
Jochen Sanio says supervisors nowhere near to solving “key issue” highlighted by crisis; flags lack of communication on Lehman Brothers
Basel II grievances stir transatlantic tensions on new accord
BNP Paribas chairman Michel Pébereau slams United States’ failure to implement Basel II across the board; says Basel III will unfairly impair Europe
Weber, Blankfein praise Basel III leverage cap
Bundesbank president Axel Weber and Goldman Sachs chairman Lloyd Blankfein laud Basel III’s inclusion of leverage ratio, as opposition mounts
Meirelles flags travails of financial reform
Central Bank of Brazil governor Henrique Meirelles says reform must be unified; Chinese, Indian ambassadors note shortcomings of G20
Ireland reveals fresh Anglo Irish bailout
Central Bank of Ireland outlines new restructuring for Anglo Irish Bank, finance minister acknowledges cost of bailout prevents government from meeting deficit cuts for year
No alternative to bail-in capital: Bank's Tucker
Bank of England's Paul Tucker attacks bankers' concerns that bail-in capital will rattle investors; Sweden's Ingves says conversions achievable
Extend 'systemic importance' to countries: Brazil's Meirelles
Central Bank of Brazil governor Henrique Meirelles calls for concept of systemic importance to be extended to countries; panellists broach challenges posed by central counterparties
CNB creates stability wing in bid to beef up systemic oversight
Czech National Bank separates financial stability and economic research department; says independent department move will enhance financial stability mandate
Central bankers, politicians splinter on reach of ESRB
Weber, Constâncio specify limits of European Systemic Risk Board's authority over national regulators; politicians advocate one unified European stand
China opens up secondary loan market in bid to reduce systemic risk
China has further liberalised its interbank market to let banks transfer loans to each other
FDIC seeks to raise standards of securitised assets
Federal Deposit Insurance Corporation approves final rule requiring banks to hold 5% of securitised assets on their balance sheet
IMF makes FSAPs compulsory
Fund says 25 countries with systemically important financial sectors will be required to undergo check-ups every five years
Nigeria limits state bond holdings; cleans up microfinance
Central Bank of Nigeria places limits on banks’ holding of state government bonds; revokes over a quarter of microfinance licences after serious problems revealed in sector
UK banking commission moots reforms
Commissioners stress they have an open mind as to which structure will best suit British banking industry
Isoard to head International Association of Deposit Insurers
International Association of Deposit Insurers appoints former governing board member of Mexico's deposit protection agency Carlos Isoard as next secretary general
Weber’s German defence highlights leadership flaws
Bundesbank president Axel Weber blames deficit countries for eurozone’s woes; analysts say comments further complicate chances at ECB presidency