Banking | GlobalPost

'Dual-track' system likely to replace Libor

Agence France-PresseMay 12, 2013 23:00

A dual-track system combining survey-based rates and objective data is set to replace key global interest rate Libor, the Financial Times reported on Monday. Martin Wheatley, the British regulator leading attempts to reform the scandal-hit interest rate system, told the FT that the new scheme would protect those with products already tied into the existing system. "You can't just say: 'Forget about yesterday's problems, we'll just move to the future'," he said.

Brazil wants shareholders to pay for rescue of troubled banks

Thomson ReutersMay 8, 2013 18:36

By Alonso Soto BRASILIA (Reuters) - The Brazilian government, concerned about systemic risk in the rapid growth of banking assets, will propose legislation to make shareholders, bondholders and depositors pay for rescuing troubled banks and shield taxpayers from the cost of bailouts.

We still trust Libor: UK corporate treasurers

Thomson ReutersMay 8, 2013 17:22

By Clare Hutchison LIVERPOOL, England (Reuters) - Financial decision makers at some of Britain's biggest companies say they still trust the scandal-hit interbank lending rate Libor, despite calls from regulators to overhaul it. Delegates at the Association of Corporate Treasurers annual conference said they did not see a better alternative, even after a global rate fixing scam demonstrated that Libor's compilers could manipulate the rate.

RBS returns to profit, to finish restructuring in 2014

Thomson ReutersMay 7, 2013 13:01

LONDON (Reuters) - State-backed Royal Bank of Scotland <RBS.L> reported its first quarterly profit in 18 months on Friday and said it expected to complete its restructuring during 2014, potentially enabling the government to start selling shares. RBS, which is 82 percent-owned by the taxpayer, made a pretax profit of 826 million pounds ($1.3 billion), compared with a loss of 1.5 billion pounds in the same period last year. Analysts had forecast a profit of 800 million pounds.

ECB cuts benchmark rate to 0.50 pct

Agencia EFEMay 2, 2013 09:30

Bratislava, May 2 (EFE).- The European Central Bank on Thursday cut its benchmark interest rate to a record low of 0.50 percent in an effort to boost economic growth in the Eurozone. The ECB, whose Governing Council is meeting in Bratislava, also cut the interest rate on its marginal lending facility, the amount it charges for one-day loans, by 0.50 percent to 1 percent. The central bank left the interest rate on its deposit facility at 0 percent.

Deutsche CEO Jain: Capital increase was chance to reach goals 'in 1 fell swoop'

The Canadian PressApril 30, 2013 06:17

FRANKFURT - Deutsche Bank's co-CEO says the bank decided on a 4.8 billion euros ($5.2 billion) capital increase so it could meet its goals for stronger financial reserves "in one fell swoop." Anshu Jain said Tuesday the increase was "a tremendous opportunity" and one the company "had to take." His comments come a day after the company announced its capital increase that includes 2.8 billion euros from the issuance of new shares.

US regulator group sees Libor rate manipulation as risk, urges officials to find alternative

The Canadian PressApril 29, 2013 08:48

WASHINGTON - A group of top U.S. regulators says the manipulation of a key global interest rate poses a risk to U.S. financial stability and are urging officials worldwide to work together to find an alternative to the rate. The Financial Stability Oversight Council made the recommendation in its annual report issued Thursday. The regulators' group, which includes Treasury Secretary Jack Lew and Federal Reserve Chairman Ben Bernanke, also identified financial disruptions caused by cyberattacks or technological failures as potential threats.

Official: China sends more than 1,400 to prison in crackdown on underground lending

The Canadian PressApril 29, 2013 08:45

BEIJING, China - Chinese authorities have sentenced more than 1,400 people to prison terms of at least five years for involvement in underground lending in a crackdown on a financing practice widely used by China's entrepreneurs, a police official said Friday. The 1,449 people imprisoned were among a total of 4,170 people convicted since 2011 of violating rules on loans outside the state-run banking system, said Du Jinfu, a Public Security Ministry official in charge of a task force on underground lending. He said the rest received lesser penalties.

Cyprus banks agree to cut interest rates

Agence France-PresseApril 24, 2013 06:00

The Cyprus Central Bank said on Wednesday that financial institutions have agreed to reduce relatively high interest rates to ease the pressure on borrowers in the bailout-hit eurozone economy. Central bank governor Panicos Demetriades met bank bosses to discuss a gradual reduction of interest rates to ease pressure on an economy in sharp recession.

EU Parliament likely to back forced losses on wealthy failed bank depositors

Thomson ReutersApril 23, 2013 14:34

By Claire Davenport BRUSSELS (Reuters) - The European Parliament is likely to back plans to impose losses on wealthier depositors in failed banks while shielding smaller savers, its lead negotiator on the rules said on Tuesday. Talks are under way to finalise EU rules on crisis-hit banks following the bailout of Cyprus, in which both large and small depositors were originally going to be hit before the plan was changed to charge only the former.