Banking
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
HKMA end-of-year review says banking sector resilient
Hong Kong Monetary Authority end-of-year review says banking sector remains resilient; plans to step up regulation of banks in 2011
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
Banking Commission chief makes case for ring-fencing retail operations
Independent Commission on Banking chief John Vickers rules out “radical narrow banking” but says some separation between investment and retail banks could help
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
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
Basel bids to ensure all regulatory capital can be used to buffer losses
Basel Committee on Banking Supervision sets out rules to ensure instruments deemed Tier I and Tier II capital can be used to soak up losses; instruments issued after January 2013 must comply
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
Barclays’ Diamond argues case for universal banking
Barclays' chief executive Bob Diamond adamant bank’s model funds cheaper lending and is less risky
Renminbi liberalisation, price stability priorities: PBoC
People’s Bank of China says currency internationalisation, price stability top priorities for 2011, following annual meeting
Icelandic central bank, regulator ink deal to collaborate
Central Bank of Iceland and Financial Supervisory Authority sign landmark agreement to work together on oversight in areas including systemic risk
Brussels sets the stage for senior debt haircuts
Internal markets directorate publishes consultation paper calling for senior bondholder haircuts in resolution regimes; analysts worry move could further disrupt funding for troubled banks
Haircut fears push up bank CDS prices
Spreads on the credit index for senior European financials widen as EU releases burden-sharing consultation paper
Philippines’ central bank takes ownership of golf course: reports
Central Bank of the Philippines takes over local golf club resort following default on loan by failed lender, local media say
CentralBanking.com’s top ten stories of 2010
Regulatory change features heavily
Spain’s Aríztegui on savings banks mergers
Bank of Spain deputy governor Javier Aríztegui discusses institutional protection schemes
Accountability and risk management key to banking: Albania’s Fullani
Bank of Albania governor Ardian Fullani tells bankers how central bank is raising the standards against which they are judged
Ireland lifts lid on tough new enforcement approach
Central Bank of Ireland publishes first-ever enforcement strategy, detailing tough line on sanctions; publication accompanies penalties on Allied Irish Banks, NCB Stockbrokers
Sants: Publication of RBS report hinges on permission from bank
Head of UK regulator "extremely sympathetic" to calls for release of report
Denmark’s Bernstein cites fiscal, Basel III worries
National Bank of Denmark governor Nils Bernstein says Copenhagen must keep tight rein on debt; banks must resolve adjustable rate loan refinancing issues
Fed writes rule to expand consumer protection
Federal Reserve proposes two rules to improve consumer protection, based on financial regulatory reform law; move part of broader rulemaking process that will turn to bank capital, leverage laws
Barnier draws UK lawmakers’ fire over new European supervisory structure
UK parliamentarians cross-examine European Commissioner for internal market regulation Michel Barnier on how much power new European supervisory authorities will have over national regulators
Sants details new regulator’s approach
UK FSA’s Hector Sants says primary objective of new banking regulator will be to resolve failed institutions without disrupting financial system; outlines new risk model
European banks could get slightly different version of Basel III: Basel Committee’s Wellink
Netherlands Bank governor and Basel Committee on Banking Supervision chairman Nout Wellink says “minor changes” possible to European version of Basel III