Dan Barnes Writer at Information Corporation
When George Osborne, Chancellor of the Exchequer, said of the Parliamentary Commission on Banking Standard’s (PCBS) report, ‘Changing banking for good’ which was set up to right the wrongs of the financial crisis, that “I am pleased to say that the government will implement its main recommendations”, I was still apprehensive. I thought the Commit...
05 August 2013 Future Finance
The announcement on 26 June 2013 that a single European regime for bankrupt banks, the Bank Recovery and Resolution Directive (BRRD), has been proposed, is demonstrative of the challenge that Europe faces in delivering new rules. It is clearly behind the US in terms of pace. The US regime was set out in 2010 as part of the Dodd-Frank Wall Street R...
29 July 2013 Future Finance
Determining who should carry the can for a bank’s bad debts took on a twist last week when activist investor Mark Taber challenged the UK regulator on its demands for a bank to raise more capital. The bank in question, Britain’s Cooperative Bank, is being asked by the Prudential Regulatory Authority (PRA), the UK banking watchdog, to raise capital...
15 July 2013 Future Finance
The rules that the European Commission is introducing around dealing with banks that fail – the ‘bail-in’ – are notable for not removing taxpayers from the process. Although they introduce creditors as a buffer before taxpayer money is used they do not make banks stand on their own two feet, as every other business is required to do. These rules a...
01 July 2013 Future Finance
As the digging into the scandal around London, Singapore, Tokyo and Euro Interbank Offered Rates (LIBOR/TIBOR/SIBOR and EurIBOR) continues, it seems increasingly obvious that many financial benchmarks have a veneer of respectability but little else. There is a push to include transactional data in the submissions to LIBOR, but that would only work...
17 June 2013 Future Finance
The cost of know your customer (KYC) programmes is proving to be too much to bear for some of the world’s larger banks. Bankers estimate KYC has increased IT costs in transaction banking by up to 15%. Fines to settle money laundering allegations with American authorities cost UK banks HSBC and Standard Chartered US$2.6billion net in 2012. Firms ar...
10 June 2013 Future Finance
The myth that national regulators are pulling together is blown apart by the ongoing debate around banks and speculative trading. Let us set aside the fact that all trading – whether with rivals or with clients – is speculative. After the US repealed enforced separation of banking and speculation through the Glass-Steagall Act, it took less than a ...
03 June 2013 Future Finance
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