Starting with a consultation and discussion paper, the FSB appears to be attempting to harmonise regulatory regimes across jurisdictions for the solvent and orderly wind-down of a derivatives portfolio of a failing G-SIB. By Justin Pugsley.
Resolution and Recovery
FSB consults on winding down failing G-SIBs
Transparency and cross border regulatory cooperation are important aspects for the orderly resolution of a failing globally systemically important bank (G-SIB) the Financial Stability Board [FSB] said in a paper and consultation.
European Parliament wants Italy’s bank shareholder rescue scheme blocked
European Parliamentarians are urging the European Commission to block a plan by Italy’s government to automatically compensate retail shareholders and bondholders in banks that fail as they see it going against EU bank bail-out rules.
Regulators propose easing living will requirements for smaller banks
US Federal prudential regulators are consulting on easing requirements for smaller banks that pose less risk with their living wills to be submitted every three years instead of on a two year basis.
Regulators pass resolution plans of 14 large domestic banks
The 2017 resolution plans submitted by 14 large domestic US banks did not reveal any deficiencies, according to US prudential regulators, and 2019 plans should only include material changes from their previous plans and updated financial statements.
Concern lingers that eurozone may not be ready for another crisis
With a possible recession on the horizon, Europe’s banks are in a stronger position than they were in the run-up to the 2007-9 global financial crisis. Nonetheless, there are still worries about too many weak banks, doubts over stress tests and the failure to complete Europe’s banking union. By Farah Khalique.
ECB places Italy’s Banca Carige into temporary administration
ECB places small Italian bank into temporary administration after it fails to gain shareholder support for a recapitalisation.
Dealers versus clearers: a battle of living wills
A recent consultation by the Financial Stability Board has further highlighted a deep schism in the industry over the procedures for resolving a failing clearing house
Four foreign banks’ resolution plans deemed to have weaknesses
The Fed and FDIC have judged the resolution plans of four foreign banks operating in the US as having weaknesses, but that they are not glaring enough to warrant extra prudential measures
FSB says most jurisdictions hosting G-SIBs have resolution regimes
The FSB said that most jurisdictions hosting too-big-to fail banks largely have resolution regimes in place for them, but is concerned that more work needs to be done on the resolvability of clearing houses and insurers
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