EIFR - European Institute of Financial Regulation - Gfma : News on the global financial markets


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20/01/2012 GFMA

Morning Bell

Germany considers different approach to transaction tax
Germany is considering supporting a UK-style stamp duty on share purchases across the EU as a way of luring UK Prime Minister David Cameron back on Europe's side, said German Economy Minister Philipp Roesler. "We should think about a possible way to get the UK on board. The British already have a special form of a stock exchange turnover tax, the so-called stamp tax," Roesler said. "If the British aren't willing to get closer to the European model of a financial-transaction tax, it would make sense to talk together with the British and other European states about the British model." Bloomberg(19 Jan.), Nasdaq.com/Dow Jones Newswires(19 Jan.)

Industry News

Talks continue toward deal to restructure Greece's debt
Greek officials continued negotiations with the Institute of International Finance, which is representing private bondholders, about restructuring the country's debt. The talks, which centre on slashing the value of Greek bonds, continue today. CNNMoney.com(19 Jan.), Reuters(19 Jan.)

European banks might reject state funds in capital plans
European banks have until the end of today to notify regulators about plans to meet capital requirements to help them withstand the sovereign-debt crisis. Lenders' plans might include rejecting state cash, instead retaining profits and recalculating loan-book risks. "Banks want to be autonomous from governments, and they value this higher than some business lines," said Nicolas Veron, a senior fellow at Bruegel. "At this point, however, no option is attractive. That's why we see the turmoil in the banking sector." Bloomberg(19 Jan.)

Ireland meets goals under rescue programme, troika says
The European Commission, the European Central Bank and the International Monetary Fund said the Irish government met fourth-quarter goals mandated by a rescue programme. However, Dublin faces "considerable challenges" this year. "The program is on track but challenges remain and continued steadfast policy implementation will be key," the troika said in a statement. The Wall Street Journal(19 Jan.)

EU should scrap deadline for OTC derivatives reforms, groups say
AFME and other industry groups said the European Securities and Markets Authority doesn't have sufficient time to properly consult and implement rules governing the over-the-counter derivatives market. The groups encouraged the EU to postpone the deadline for reforms. Global Financial Strategy(18 Jan.)

Banks need bespoke accounting rules, BoE official says
Andrew Haldane, executive director for financial stability at the Bank of England, said bespoke accounting rules are needed to clarify the value of assets held on banks' books. Banks' bookkeeping rules exacerbate regulatory and investor uncertainty, Haldane said. Instead, rules need to recognise differences between banks and other kinds of businesses. "A distinct accounting regime for banks would be a radical departure from the past," he said. "But if we are to restore investor faith in banking-sector balance sheets, nothing less than a radical rethink may be required." Reuters(19 Jan.)

Cameron plans to cap bonuses at state-backed banks
British Prime Minister David Cameron outlined plans to limit bonuses at state-backed financial institutions, saying cash rewards in the financial sector have gotten "out of control". Next week, the coalition government plans to explain its proposal for curbing executive compensation, Cameron said. Reuters(19 Jan.), The Wall Street Journal(19 Jan.)