WASHINGTON - Europe’s financial stability framework is running behind market developments and holding up financial integration, according the International Monetary Fund (IMF).

LONDON – Leading credit rating agency Standard & Poor’s says it will publish its own capital adequacy measures for global banks from the first quarter of 2008.

WASHINGTON – Small changes in US guidance on the use of sophisticated methods for measuring operational risk under the Basel II rules have made the implementation of advanced measurement approaches even more rigid, according to a banking industry body.

LONDON, June 5 (Global Risk Regulator) – Leaders of the Group of Eight rich countries meeting this week in Germany will call for greater vigilance and better efforts to improve the transparency of hedge funds.

HEILIGENDAMM, Germany, June 7 (Global Risk Regulator) – World leaders meeting at the Group of Eight wealthy nations’ summit hosted by Germany agreed today that the growth of the hedge fund industry requires vigilance, news agencies reported.

Growth in cross-border banking groups and a shift to principles-based regulation spurs calls for more even application of rules By Melvyn Westlake

New principles are being proposed for treatment of default risk in trading books. Banks say they will be costly. Changes wanted By Melvyn Westlake

Several divisive and longstanding problems greet the new head of the AIG. They include the stalled negotiations over trading book risk and home-host differences on operational risk By Melvyn Westlake

EU-US leaders aim to limit Basel II gap effects

LONDON – The much-admired principles-based financial regulation being pioneered by Britain’s Financial Services Authority (FSA), was expounded in the clearest terms yet in a paper issued in late April and a related conference attended by top FSA managers and financial industry leaders.