GFMA - News on the global financial markets

Regulatory Roundup

UK regulator presses banks to reveal leverage ratios early
The UK Financial Policy Committee told banks that they should disclose their leverage ratios two years ahead of schedule. AFME voiced concerns about the idea. The committee also suggested that lenders "limit distributions", such as dividends and bonuses, because borrowing costs are expected to surge. Banks were also encouraged to "give serious consideration to raising external capital in the coming months". Financial Times(tiered subscription model)(01 Dec.), The Telegraph (London)(01 Dec.), Reuters(01 Dec.), Bloomberg(01 Dec.), The Guardian (London)(01 Dec.)

Barnier promotes proposed tax on financial transactions
Michel Barnier, the EU's internal-market commissioner, continues to push his proposal to tax financial transactions. The tax would be "technically easy to implement, economically bearable, financially productive and politically just," Barnier said. Bloomberg(01 Dec.)

Commentary: It's time for financial sector to pay its share
Algirdas Šemeta, the EU's commissioner for taxation, customs union, audit and anti-fraud, writes that he gained optimism from a Group of 20 discussion about taxing financial transactions. Šemeta argues that it is time for the financial industry, through such a tax, to pay its share. "On this principle, the participants at the G-20 Summit were very much united," he writes. On how to achieve it, there was more scope for debate." The Hill(01 Dec.)

Draghi signals bigger crisis-resolution role for ECB
Mario Draghi, president of the European Central Bank, indicated that if euro-zone governments take steps to reduce their deficits, the central bank's role in tackling the sovereign-debt crisis could grow. Speaking before the European Parliament, Draghi offered a blueprint, including a "new fiscal compact" for national governments. The Wall Street Journal(02 Dec.), Reuters(01 Dec.)

EU regulators reportedly won't tighten stress tests for banks
The European Banking Authority and EU national regulators agreed not to tighten stress-test rules further for banks, according to a German newspaper. The decision comes as banks struggle to increase capital buffers as a mid-2012 deadline looms. Reuters(02 Dec.)