L'imbroglio européen sur les OGM

Dernières nouvelles de la zone euro

La présidentielle, vue(s) d'Europe

Les agriculteurs interpellent les candidats à la présidentielle

Europe et services sociaux : le sursaut pédagogique viendra-t-il?

La place de la Turquie est dans l'UE, réaffirme le président du Parlement

Infrastructures électriques : les Vingt-Sept veulent garder la maitrise des délais

Morning Bell

Foreign governments continue to pressure U.S. on Volcker rule
Regulators and central bankers from the U.K., Canada and Japan have already voiced concerns with U.S. officials about the Volcker rule, and other foreign entities are expected to follow suit. The European Commission reportedly plans to speak with officials at the Treasury Department. Rob Toomey, managing director and associate general counsel at SIFMA, said the group backs calls to exempt sovereign-debt trading. "We spot-on agree with the positions taken by these foreign authorities -- how they are viewing the restrictive interpretation of market making and how that impacts their debt," Toomey said. See SIFMA's Volcker Rule Resource Center, including two recent studies on the impact of the proposed rule. IFLR.com (subscription required)(2/7)

Industry News

ISDA and SIFMA ask judge to suspend position limits rule
ISDA and SIFMA asked a federal judge to suspend a Commodity Futures Trading Commission rule that limits commodity speculation. "Compliance efforts will include restructuring of corporate relationships and divestment -- irreversible changes in ownership," Eugene Scalia, a lawyer for the associations, wrote in a court filing. "These costs are being incurred now and will continue to rise absent a preliminary injunction, and they will be impossible to recoup if the rule is invalidated -- as it likely will be." Bloomberg Businessweek(2/7), Reuters(2/7)

FinCEN demands anti-money-laundering programs from nonbank lenders
The Financial Crimes Enforcement Network is requiring nonbank mortgage lenders to develop anti-money-laundering plans and file reports about suspicious activities. FinCEN Director James H. Freis Jr. said the final rule closes a gap in regulations. SIFMA AML 2012is your opportunity to hear from FinCEN officials, other top federal regulators, and experts from across the financial services industry. Register today. American Banker (free registration)(2/7)

Muni sector largely unaffected by European crisis, Moody's says
A Moody's Investors Service report says the European sovereign-debt crisis has not significantly affected the credit quality of the U.S. municipal sector. "The U.S. municipal market's most direct links to the credit challenges faced by European governments and banks is through the issuers' exposure to material counterparty risk," said Tim Blake, managing director at Moody's. "These exposures are low in the aggregate but are material for a small number of issuers and such risks are already incorporated in our municipal ratings." The Bond Buyer (subscription required)(2/7)

Morning Bell

Regulators focus on shadow banking
Critics say the shadow-banking system, which is about half as large as the global banking industry, could prompt the next financial crisis. The situation has global regulators taking note. The Financial Stability Board is concerned that shadow banks could be used to attract risky activities and avoid regulations. "What we're doing now is looking at the types of data that the FSB will be gathering," said Rick Watson of AFME. "The scope is pretty broad, but it's important to get the facts on table and consider what activities could pose a risk." Reuters(07 Feb.), AdvisorOne.com(07 Feb.)

Industry News

ECB reportedly makes key concessions on Greek bond holdings
The European Central Bank helped narrow a gap in Greece's finances by making concessions on its holdings of the country's sovereign bonds, sources said. The move helps clear the way for another rescue for Greece. As long as Greece's debt-restructuring talks are successful, the ECB will swap its bonds at a price below face value. The Wall Street Journal(08 Feb.)

 Portugal makes progress on fiscal plans, EFSF official says
Klaus Regling, head of the European Financial Stability Facility, said the Portuguese government is moving forward with plans to improve its fiscal position. "Portugal is on track, but the markets are not rewarding it yet," Regling said. "I'm confident that with the new government that was elected with a mandate for change, they will continue." The Wall Street Journal(07 Feb.)

Judge dismisses MBS suits against Deutsche Bank
US District Judge Jed Rakoff dismissed lawsuits brought by Dexia and the Teachers Insurance and Annuity Association of America against Deutsche Bank. The plaintiffs alleged that the bank misrepresented the quality of mortgage-backed securities. Rakoff said the cases could be refiled if they focus specifically on MBS produced by the bank. The Wall Street Journal/Dow Jones Newswires(07 Feb.), Reuters(07 Feb.), Bloomberg Businessweek(08 Feb.)

Les relations se tendent encore entre l'UE et la Hongrie

L'Europe plombera la croissance mondiale en 2012, selon le FMI

Les propositions de Paris et Berlin pour relancer la croissance

Le programme des institutions européennes en 2012

La réforme européenne des services publics crée des attentes

Morning Bell

Obama outlines plan to collect fees from banks to help refis
In his State of the Union address, President Barack Obama announced a plan to levy fees on major banks to help spur mortgage refinancing for struggling homeowners. "A small fee on the largest financial institutions will ensure that" a mortgage-refinancing plan "won't add to the deficit, and will give banks that were rescued by taxpayers a chance to repay a deficit of trust," the president said. Bloomberg Businessweek(1/25), American Banker (subscription required)(1/24)

Industry News

Banks face regulatory changes and bleak economic outlook
Banks must deal with an onslaught of regulations and a dismal economic outlook. The situation is leading financial institutions to shrink. Financial Times(tiered subscription model)(1/24)

Fitch to disclose grading model for mortgage bonds
Fitch Ratings said it will reveal its grading model for home-loan bonds despite concerns that doing so might allow issuers to exploit vulnerabilities in the system. Meanwhile, Shellpoint Partners co-CEO Saul Sanders said the rating agencies hinder the private mortgage-bond market. Bloomberg(1/24)

Citigroup might further cut spending in securities unit
John Gerspach, chief financial officer at Citigroup, said the company will consider further spending cuts in its Securities and Banking division if revenue doesn't rebound this year. "We are not oblivious to the fact that our cost structure cannot be justified by our current revenue," Gerspach said. "While much of the current difficulty reflects market conditions, we equally have some management and execution challenges." Bloomberg(1/24)

BofA reportedly notifies investment bankers about pay cuts
Bank of America has pay discussions with investment bankers scheduled this week, but executives have already told the firm's investment bankers that their compensation packages will be about 25% less than last year, sources said. "Until things really come back, no one should be expecting compensation like they got in the past," said Jeanne Branthover, a managing director at Boyden Global Executive Search. "There are going to be very strong people who will not be compensated as they expected, and they will keep their ears open to move for more money." Bloomberg(1/24)

Morning Bell

EU ministers strike deal on rules for OTC derivatives clearing
EU finance ministers reached an agreement regarding clearinghouses that deal with over-the-counter derivatives. The officials determined when national decisions to authorise clearinghouses can be overridden by a regional watchdog. "Now we have a delicate compromise, but the fine thing is that we all agree on it," said Margrethe Vestager, Denmark's economy minister. Bloomberg Businessweek(24 Jan.), Reuters(24 Jan.), Financial Times(tiered subscription model)(24 Jan.)

Industry News

Greek creditors seek deal as chaotic default looms
Greek bondholders are striving to draft an agreement after European finance ministers rejected a proposed bond swap between Greece and private creditors. "It's important that all parties recognise how much we have at stake and work together and cooperate to find a solution," said Charles Dallara of the International Institute of Finance, which is representing private bondholders. Reuters(24 Jan.), The Wall Street Journal(25 Jan.)

ECB and dealers discuss buying inflation-linked bonds
The European Central Bank and a group of dealers are discussing the idea of purchasing government inflation-linked bonds, sources said. AFME had organised an initial call last week between the central bank and dealers, but it was delayed because of a technical glitch. "The essence of last Friday's call was to address concerns and the problems surrounding liquidity in market-making euro-zone linkers," one banker said. "It was something we as primary dealers were requesting more than the ECB, but it was happy to hear the feedback." Risk.net (subscription required)(24 Jan.)

European banks and regulators are at odds over capital reserves
European regulators want financial institutions to reduce staff bonuses and tap shareholders to increase capital reserves. Banks, however, would rather write down or sell unprofitable businesses and make balance-sheet adjustments to meet capital requirements. The New York Times (tiered subscription model)/DealBook blog(24 Jan.)

NEW YORK, January 11, 2012 – The InternationalSwaps and Derivatives Association, Inc. (ISDA) announced today the membershipand charter of the Industry Clearing Committee (ICC).

The ICC, which consists of a broad cross-sectionof over-the-counter (OTC) derivatives industry market participants, wasformed by ISDA in June 2011 to meet current and emerging industry needsin respect of clearing.  More specifically, the ICC will assist incoordinating industry efforts to reach optimal levels of central counterpartyclearing and to address obstacles in achieving those levels
(...)
http://www2.isda.org/news/isda-announces-membership-and-mission-of-the-industry-clearing-committee

(Bruxelles, 18/01/2012 (Agence Europe)- La France et l'Allemagne veulent accélérer les discussions en Europeen matière de coordination fiscale, malgré les résistances de l'Irlandenotamment, et feront bientôt des propositions sur leur impôt harmonisésur les sociétés. Paris et Berlin avaient annoncé en août vouloir parvenircourant 2013 à un impôt sur les sociétés commun aux deux pays, dont lestaux et l'assiette seraient ainsi harmonisés.
 

by Claudio Borio, Mathias Drehmann andKostas Tsatsaronis
 
Working Papers No 369
January 2012

Abstract:

 We critically review the stateof the art in macro stress testing, assessing its strengths and weaknesses.We argue that, given current technology, macro stress tests are ill-suitedas early warning devices, ie as tools for identifying vulnerabilities duringseemingly tranquil times and for triggering remedial action. By contrast,as long as properly designed, stress tests can be quite effective as crisismanagement and resolution tools. We also see additional side benefits,stemming largely from the way such tests can discipline thinking aboutfinancial stability. We suggest possible ways to improve their performance.
http://www.bis.org/publ/work369.htm

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.)

Morning Bell

AFME warns how proposed transaction tax would affect FX markets
AFME released a report that shows how a proposed tax on financial transactions could significantly increase costs in foreign exchange markets. The report, prepared by Oliver Wyman, warns that the tax could drive as much as three-quarters of tax-eligible transactions outside the EU. "This study shows that the proposed tax would in effect penalise Europe's businesses for sensible risk management [who] use FX products to manage currency fluctuations, and also threaten to impose further costs on the investment returns of pension funds and asset managers," said James Kemp, managing director at AFME. The Wall Street Journal/Dow Jones Newswires(17 Jan.)

Industry News

Greece's Papademos will discuss debt relief with bondholder group
Negotiations between Greek officials and a group representing private bondholders are set to resume after a five-day break. Prime Minister Lucas Papademos is poised to meet with the group to discuss forgiving 50% or more of Greece's debt. "The next few weeks will be the most difficult in the Greek programme," said Athanasios Vamvakidis, a foreign exchange strategist at Bank of America. "All this needs to be completed by mid-March to avoid a disorderly default. Not an impossible task, but clearly very challenging with very much at stake." Bloomberg Businessweek(17 Jan.), Reuters(17 Jan.), The Washington Post/The Associated Press(17 Jan.)

Almunia emphasises competition as he considers DB-NYSE merger
Joaquin Almunia, the EU's top antitrust regulator, vowed to drive competition using "all available instruments" as he considers the proposed merger of Deutsche Boerse and NYSE Euronext. "In this case as in others", the European Commission "will seek to ensure that European markets remain fair, efficient and therefore competitive to the advantage of their users", Almunia said. Bloomberg(17 Jan.), The Wall Street Journal(17 Jan.)

Morning Bell

• Commentary: Overly complex regulations won't prevent crises
  Columnist Joe Nocera writes that Jamie Dimon, CEO at JPMorgan Chase, and other industry experts are raising concerns about the onslaught of regulations hitting the financial sector. Nocera explains that the regulations are often too complex, contradictory, or both, and that they are unlikely to prevent crises. The New York Times (tiered subscription model)(1/16)

Industry News

• Industry studies idea of "mutual recognition" for new rules
  A coalition of industry groups, including SIFMA and AFME, commissioned the law firm Clifford Chance to study the idea of "mutual recognition" of regulations in the EU and the U.S. Financial Times (tiered subscription model)(1/16)
• Pandit: Financial system needs more market-driven reform
  Citigroup CEO Vikram Pandit writes that the financial system can be improved by increasing transparency and giving markets more tools to discipline firms that use too much leverage. Financial Times(tiered subscription model)(1/10)
• Dealers shift from corporate securities to Treasurys
  As of Dec. 28, the Federal Reserve's 21 primary dealers held a combined $74.7 billion in U.S. Treasurys and $61.1 billion in corporate bonds. It is the first time that the largest bond-trading firms on Wall Street have held more Treasurys than company debt. Bloomberg Businessweek(1/17)

Morning Bell

• S&P move prompts backlash from European officials
  Standard & Poor's downgrades of credit ratings of nine euro-zone nations prompted questions and calls for systemic changes from EU lawmakers and other officials. Michel Barnier, the EU's internal-market commissioner, criticised the credit rating agency's move. "I am surprised time and time again by the timing the rating agencies choose to make such announcements," Barnier said. "These rating agencies should have given their alerts five, 10 years ago; not now." Reuters(16 Jan.), The Wall Street Journal/Dow Jones Newswires(16 Jan.), The Wall Street Journal/Dow Jones Newswires(16 Jan.), Bloomberg(16 Jan.)
• Markets largely are unmoved by rating downgrades: Standard & Poor's cuts of nine euro-zone countries' credit ratings did little to move European stocks, governments bonds and the euro because the downgrades were already priced in. Financial Times (tiered subscription model)(16 Jan.)
• German bonds become even more attractive after S&P move: Standard & Poor's downgraded the triple-A credit ratings of France and Austria, making German bonds increasingly attractive as a safe haven. "Germany's stable outlook means that it remains one of the strongest issuers available to investors," said Gianluca Ziglio, an interest-rate strategist at UBS. "Low German yields are here to stay. This week's Spanish auction will probably be less supported." Bloomberg(16 Jan.)

Morning Bell

Study: EU financial-transaction levy could hit tax revenues
A proposed EU tax on financial transactions could reduce, rather than increase, overall tax revenues, according to a study by economic consultancy Oxera and commissioned by AFME. Financial Times (tiered subscription model)(10 Jan.)

Sarkozy insists France must move forward with Tobin tax: French President Nicolas Sarkozy said France must lead the way on a financial-transaction tax despite concerns that going it alone might damage the country's financial-services industry. Financial Times(tiered subscription model)(10 Jan.)

Merkel's party will push for financial-transaction tax: Germany's Christian Democrats, the party of Chancellor Angela Merkel, will press for the EU to implement a tax on financial transactions, a senior lawmaker said. The UK and Sweden oppose the tax, but Merkel favours the move with or without their support. Reuters(10 Jan.)