Financial Stability
FDIC’s Bair calls for reform of mortgage servicing model
Federal Deposit Insurance Corporation chair Sheila Bair says reform of mortgage servicing business model needed in order to realign mortgage servicers’ incentives when managing mortgage payments
ESRB elects sub-committee heads
European Systemic Risk Board elects Poland’s Marek Belka, Italy’s Mario Draghi, Cyprus’ Athanasios Orphanides, Germany’s Axel Weber, to steering committee
Bank’s Haldane borrows from science to explain systemic threats
Bank of England’s Andrew Haldane collaborates with scientist Lord Robert May in top journal Nature to highlight implications of interconnections between firms on stability of the financial system
ECB opinion on derivatives reform spurs debate on CCP liquidity resilience
French authorities welcome ECB's call for the resilience of central bank money to be recognised in EU derivatives legislation.
Israel unveils measures to brace against inflows
Bank of Israel introduces reporting rules, reserve requirements on foreign exchange derivatives trades; measures intended to clarify nature, limit inflows
Central banks after the crisis: many questions, few answers
The turmoil has left our profession facing some uncomfortable truths, Mojmír Hampl notes.
FSoC draws up Volcker rule plan
Financial Stability Oversight Council recommends rules to expand scope, force disclosure of permitted hedge fund investment
Korea’s Kim promotes debate on enhancing macroprudential tools
Bank of Korea governor Kim Choongsoo encourages debate within international circles on more advanced forms of macroprudential instruments to ease emerging market risks
Eurosystem crisis measures averted prolonged crisis: ECB paper
European Central Bank study says introduction of unconventional monetary policy measures during financial crisis successfully provided liquidity to banking system
Brussels seeks clarity on solving national regulators’ spats
European Commission calls for amendments to laws stating what the role of new supervisory authorities will be in resolving disputes between national regulators
FSoC moots amendments to 'too big to fail' law
Financial Stability Oversight Council suggests changes in accounting standards, language of reform law barring firms from holding more than 10% of industry’s total liabilities
ECB opines on Basel countercyclical buffer
Central bank cautions against mechanical application of credit-to-GDP ratio for calibration
Sweden’s Ingves draws roadmap to macroprudential mandate
Riksbank governor Stefan Ingves discusses measures in governance, implementation and econometrics needed for successful macroprudential policy
NY Fed paper highlights discount window stigma
New York Federal Reserve study finds evidence of stigma attached to bank lending when accessing funds from discount window during crises
Swiss authorities ink deal on crisis collaboration
Swiss National Bank, finance ministry and regulator sign memorandum on supervisory cooperation
Bank of Finland research on moral hazard effect of collateralised loans
Bank of Finland study examines effects on moral hazard when collateral values fluctuate
Euro counterfeits drop by 5.9%
European Central Bank statistics show 364,000 forged euro banknotes recovered in second half of 2010; €50 note remains most popular bill to fake
Basel III will cause ‘financial Darwinism’: BaFin’s Sanio
Top German regulator Jochen Sanio says Basel III will squeeze weaker banks, spur formation of large banking groups that will pose more systemic risk
Political instability hampers growth: IMF research
Fund study shows political instability significantly reduces economic growth
PBoC allows Chinese firms to invest renminbi abroad
People’s Bank of China to allow domestic banks to settle investments abroad in renminbi as part of cross-border investment pilot
Gold could hit $1,600 in 2011, say analysts
Commentators say investor appetite for the precious metal will continue to soar as concerns over US economy, eurozone sovereign debt issues, persist
EBA plans new round of stress tests
New European Banking Authority announces second round of stress tests for European banks at opening meeting
Oberthur seeks equity house support in De La Rue takeover bid: reports
French banknote firm Oberthur reportedly in talks to issue private equity houses with convertible bond to fund De La Rue acquisition
Senior officials for new European regulators named
European regulators in Paris and Frankfurt appoint a number of new heads and board members