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.
Resolution and Recovery
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
US agencies pondering refinements to living wills for banks
Speaking at a recent banking conference, FDIC chairwoman said the FDIC and Fed are looking at ways to simplify bank resolution planning and to make it more proportionate to a banks size and complexity
Prudential Financial removed from too big to fail list
Prudential Financial becomes last US insurer to shake off the ‘too big to fail’ designation, with critics seeing it as a significant roll back of the Dodd-Frank Act
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