BASEL – The Basel Committee on Banking Supervision (BCBS) published a second consultative paper as part of its fundamental review of capital requirements for banks’ securities trading books. This follows feedback on an earlier paper produced in May 2012.

BRUSSELS – Sheila Bair, the former chair of the US Federal Deposit Insurance Corporation (FDIC) called for all bank debt instruments to be subject to bail-in once a bank falls into resolution. Speaking at a conference organised by public interest association Finance Watch, she also advocated ring-fencing within banks, and a legislative code that forbids bail-outs.

Drive for global accounting language stalls in spat over funding By Charles Piggott

Insurance regulators meeting in Taiwan in October 2013 proposed the development of the first ever global capital standard for internationally active insurance groups (IAIGs) by 2016, with full implementation by 2019. The industry response is broadly supportive of the concept, but doubtful on whether the initiative can succeed in such a short timeframe. A fragmented insurance regulation landscape and multiple initiatives from different international bodies are sowing confusion about the plan among insurers.

Single supervisor could be undermined if funding mechanisms for distressed banks are not agreed By Philip Alexander

US regulators focus on bank holding companies, proposing minimum levels of unsecured debt to bail in creditors By Charles Piggott

Federal Reserve version of Basel proposes tough liquid asset definitions and tight timetable By Philip Alexander

Financial industry is strongly opposing the Basel Committee’s revised leverage ratio approach. Critics claim it will make system riskier By Melvyn Westlake

Europe’s plan for regulating money market funds includes a capital buffer, an approach abandoned in the US. Fragmentation fears raised By Melvyn Westlake

FT acquires GRRIn a significant move for accurate and in-depth editorial coverage of global financial regulation, the Financial Times Limited has acquired Global Risk Regulator. This development will combine the established high quality reporting and analysis of GRR with the reach and intelligence network of the FT. It will permit an even more in-depth and comprehensive coverage of rulemaking for the financial industry, the implementation of those rules, consistency of their application and subsequent compliance with them.