Tag: TBTF
EU Banks- Too Big to fails, Too Big to Save- now Too Big To Separate
The European Commission has quietly buried its TBTF ringfence proposal. At least to the financial community, the contents of Tuesday’s publication of the Commission Work Programme for 2018 were more notable for what they omitted. Under the aspirational subtitle “A Deeper and Fairer Economic and Monetary Union”, Annex III of the Programme contains nine financial […]
BRRD Level II OJ’d
The Delegated Regulation (DR) supplementing the BRRD was published in the OJ on the 8 July 2016, having passed consideration by the Council and the Parliament, triggering its entry into force on 28 July 2016. The draft RTS was submitted to the EC by the EBA in December 2015, then adopted by the Commission under its […]
TBTF alive and well in the US
The Federal Reserve and the FDIC announced today that the living wills of five large American banks are determined as “non-credible”. Citigroup’s was the sole systemically-important bank whose submission passed the scrutiny of both Regulators. Bank of America, Bank of New York Mellon, JPMorgan, State Street and Wells Fargo each have until 1 October 2016 […]
FSB on Structural Reform- too early to tell, may be trouble ahead
The FSB has published an interesting round-up of structural banking reforms as a report to the G20 Leaders for the November 2014 summit. The short (21 page) report overviews structural reform in the G20 jurisdictions and assesses their consonance and cross-border consistency. While it is a usefully concise summary of the various nascent and ongoing […]
Last Minute Loss of Nerve Over TBTF?
The FT is reporting that a stand-off has developed over the EU bank recovery and resolution directive. The issue relates to the degree of support that a state can provide to an ailing bank before triggering the bail-in provisions of the directive.
IMF- TBTF hydra alive and well
The IMF has issued its latest warning on the perennial problem of TBTF banks. Chapter 3 of its bi-annual Global Financial Stability Report presents an interesting comparison of different approaches to calculating the TBTF subsidy consequent upon implicit government bailout\guarantee. Its broad approach is to compare CDS prices and credit ratings across larger and smaller […]
Bob Diamond shines a light on TBTF
Bob Diamond, ex–chief of Barclays writes about the TBTF problem in today’s FT, bemoaning the lack of progress in dealing with this elephant in the financial reform room. He fully supports the consensus opinion that the problem requires: a global resolution system, a level playing field with respect to capital and leverage, and international consistency […]
FSB TBTF progress report- (not much)
The FSB issued a report on Monday, ahead of the St. Petersburg G20 meeting, assessing progress on the problem of Too Big To Fail financial institutions. Aside from important judgements as to whether they should actually be called Too Interconnected etc., a valid answer to the TBTF question has the potential to render much of […]