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30 November 2012
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News on the global financial markets

  Morning Bell 
  Industry News 
  • EU court blocks request for ECB files on how Greece hid debt
    The EU General Court, rejecting a request by Bloomberg News, is allowing the European Central Bank to keep private documents that show how Greece used derivatives to conceal debt. "The courts are bending the rules to legalise the policies of the European institutions and help stabilise the region," said Georg Erber of the German Institute for Economic Research. "It reveals implicitly that the EU was well-informed about what was going on and didn't take steps to avert the crisis." Bloomberg (29 Nov.) LinkedInFacebookTwitterEmail this Story
  • Tier 2 becomes focus as European banks boost capital
    European banks, looking to increase capital, plan to tap Tier 2 capital along with other kinds of subordinated debt, pending better indications on treatment of hybrid Tier 1 debt next year, bankers say. As much as €200 billion in Tier 2 capital might come to market in the next few years, while as much as €150 billion in Tier 1 capital is expected when rules are clarified. "Issuers will want to take advantage of market windows as there is a feeling that if they leave it too long, then they will get caught up in a lot of supply," said Simon McGeary, head of new products at Citigroup. International Financing Review (free content) (29 Nov.) LinkedInFacebookTwitterEmail this Story
  • Greek deal bolsters Italian and Spanish debt
    An agreement by creditors to trim Greece's debt burden has benefited Italy and Spain, with investors turning to their government debt. This marks a turnaround from the summer, when yields were sharply higher. "If market conditions stay where they are, Spanish and Italian bonds offer an attractive return," said Valentijn van Nieuwenhuijzen, head of tactical asset allocation at ING Investment Management. The Wall Street Journal (29 Nov.) LinkedInFacebookTwitterEmail this Story
  • Experts discuss possible ways to overhaul Libor
    The American Enterprise Institute asked a group of experts to discuss proposals for resolving issues plaguing the London Interbank Offered Rate and other benchmarks. Alex Pollock of AEI offered a bit of history of how Libor came to be and how it has emerged as probably the world's most important index. The experts differed on many points but expect adjustments will be made to Libor's administration. However, deals might be drafted to rely on alternative benchmarks, they said. (29 Nov.) LinkedInFacebookTwitterEmail this Story
  Regulatory Roundup 
  • European Commission and Parliament are at odds over OTFs
    The European Parliament and the European Commission disagree on the scope of organised trading facilities, which are part of the revised Markets in Financial Instruments Directive. The commission argues that OTFs should include equities traded on broker-crossing networks, but Parliament recommends that OTFs be used only for non-equity instruments. The Trade News (U.K.) (29 Nov.) LinkedInFacebookTwitterEmail this Story
  • European Parliament panel backs ECB as bank supervisor
    Bank-oversight duties for the European Central Bank gained endorsement from the European Parliament's Economic and Monetary Affairs Committee. However, the legislation's passage by year-end depends on finance ministers agreeing on provisions of the measure when they meet next week, committee Chairwoman Sharon Bowles said. Bloomberg (29 Nov.) LinkedInFacebookTwitterEmail this Story
  Spotlight on China 
  • PBOC official criticises US over FATCA
    Liu Xiangmin, a senior official at the People's Bank of China, says the US has erred in taking a unilateral approach to thwart tax evaders by way of the Foreign Account Tax Compliance Act. Liu says FATCA doesn't respect the sovereignty of other nations. "It creates unreasonable costs for foreign financial institutions and directly contravenes many countries' privacy and data-protection laws," he said. (subscription required) (28 Nov.), Reuters (28 Nov.) LinkedInFacebookTwitterEmail this Story
  GFMA News 
  • IOSCO Secretary General David Wright will speak at GFMA/SIFMA LEI Seminar -- 11 December in New York City
    GFMA and SIFMA are partnering to present "Implementing a Global LEI Framework -- Ready. Set. Go." International Organisation of Securities Commissions Secretary General David Wright will provide the keynote address. Join Wright, US Treasury Department representatives and financial-services leaders as they address key issues that will influence and shape the future of a global standard for legal-entity identification and the impact such regulations and processes will have on your firms starting in December. Don't miss your chance to prepare. Register! LinkedInFacebookTwitterEmail this Story
The robbed that smiles, steals something from the thief."
--William Shakespeare,
British playwright

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