A selection of news items generated by the American regulatory reform agenda

Faults seen in both US and international approaches to loan loss accounting, but critics unite in call for converged solution By David Keefe

COLUMBUS, Ohio – A top US regulator has expressed concern at the delay in finalising the Basel III capital rules for banks in America. Federal Reserve governor Sarah Bloom Raskin told bankers in early June that she was “concerned that significant, further delays could add to uncertainty and could detract from the maintenance of strong capital levels.”

LONDON – Regulations to reduce risks in the $630 trillion over-the-counter (OTC) derivatives market, being introduced in both the EU and US, are potentially conflicting and over-lapping in a number of key areas, according to analysis

WASHINGTON – New proposals to reform money markets funds (MMFs) are being put forward by the US Securities and Exchange Commission (SEC), amidst criticism from proponents of tough regulation that they have been watered down and accusations from some financial industry bodies that they are still too onerous.

LONDON – Top insurers elected Michael McGavick, chief executive of Bermudian global insurer XL Group, as chairman of the Geneva Association, the Basel-based insurance industry think tank.

WASHINGTON – As expected, insurers Prudential Financial and American International Group (AIG) plus finance company GE Capital were slated in June for heightened regulatory oversight under America’s plans for curtailing risks to the overall financial system.

NEW YORK – Morgan Stanley’s Stephen O’Connor is the global privately traded derivatives industry’s new full-time chairman as the $633 trillion business faces regulation for the first time from policymakers fearful of potential threats to financial stability.

HONG KONG – Some large and important economies – Japan, the United States and China, for instance – have not fully adopted international accounting rules, but even here more progress is being made than many realise, the world’s top accounting rule-maker said in June.

BASEL – European Central Bank president Mario Draghi becomes chairman of the Group of Governors and Heads of Supervision (GHOS), which oversees the Basel Committee of top banking supervisors, from July 1, the Bank for International Settlements (BIS) said in June.