Regulators send a wake-up call to firms that think the financial crisis was purely a matter for bankers

The door is starting to open on the prospect of Europe recognising US insurance regulation as equivalent to Solvency II, despite the obstacles created by America’s state-based system of regulation. But it’s essential to find a transition process, says a leading European parliamentarian, the UK Labour Party’s Peter Skinner.

Latest capital accord is virtually silent on operational risk, but practitioners say regulatory eyes are still firmly on the ball

The financial crisis of 2007/09 is the kind of event for which stress testing and scenario analysis – now much in vogue as stable doors are noisily bolted throughout the banking world – might have been designed. But in fact the crisis exposed a number of issues, not least because with few exceptions there is no agreed scenario methodology, Blunden and Thirlwell say in their book on mastering operational risk.

WASHINGTON, September 23 (Global Risk Regulator) – US commitment to tougher global capital rules for banks was reaffirmed this week by US Treasury secretary Timothy Geithner who told US lawmakers the new rules must be implemented in a way that results in a level playing field in an increasingly integrated financial system.

LONDON. September 13 (Global Risk Regulator) – Although slammed by some as insufficiently strict, and others as a risk to global economic growth, the most objective assessment of Basel regulators’ proposed bank capital reforms seems to be: ‘tough requirements, but generous implementation schedule.’

BASEL, Switzerland, September 12 (Global Risk Regulator) – Tougher bank capital rules agreed today by global regulators in the wake of the world financial crisis are broadly in line with expectations.

PARIS – Strong differences are emerging between financial trade bodies over their response to proposals to regulate the over-the-counter (OTC) derivatives market in Europe. The Alternative Investment Management Association (AIMA) – the global hedge fund industry association – is urging EU policymakers to push ahead with reforms of OTC derivatives, arguing that the benefits will outweigh increased costs.

WASHINGTON – Reforms to the asset-backed securities (ABS) market, proposed by the Securities and Exchange Commission (SEC), America’s main securities markets watchdog, have received some grudging support from leading trade bodies in the US. But they are worrying many market participants in Europe who fear the proposals will put them at a competitive disadvantage.

CHARLOTTE, NORTH CAROLINA – Now that the Dodd-Frank financial reform legislation has been passed, the US is determined to ensure that other major countries apply equally tough banking standards. That was made clear in August by Michael Barr, US Treasury assistant secretary for financial institutions, in two key speeches in regional financial centres.