Hybrids in the news

UniCredit, Intesa Ask Regulators to Review SIFI Rules, MF Says

G-Sifi insurers may not face surcharge

Basel Committee Keeps 2.5% Surcharges for Biggest Banks

The Basel Committee on Banking Supervision decided against changing the surcharge levels during talks today and yesterday amid criticisms from banks including BNP Paribas SA and Citigroup Inc. (C) that the measures may stymie the financial system’s recovery. Regulators at meetings in Basel, Switzerland, also agreed to accelerate work on a minimum liquidity rule to provide “greater market certainty.”

How to Solve Europe's Banking Crisis

BOC Carney: Contingent Capital Can Play Role In Bank Stability

CRD IV proposals do not deviate markedly from Basel III, says EC's Faull

Basel Said to Weigh Bank Criticisms of Too-Big-to-Fail Capital Surcharges

The Basel Committee on Banking Supervision will next week consider the need for changes to capital surcharges on the biggest banks amid warnings from lenders that the measures may stymie the financial system’s recovery, according to two people familiar with the talks.

Fed and J.P. Morgan spar on capital rules

A top banker and a key Federal Reserve regulator on Thursday sparred over the impact of new global capital rules on large U.S. financial institutions.

Big bank surcharge not anti-American: watchdog

U.K s Contingent Capital Promise Is Empty

Integration with EU regs is key to ICB

Flexibility and integration with EU capital requirements and bank resolution proposals is essential if the UK Independent Commission on Banking's proposals are to work, says Sharon Bowles, chair of the European Parliament's Economic and Monetary Affairs Committee. 

Repeat of 2008 convertible bonds sell-off unlikely says RWC Partners

David Basile, fund manager of the RWC Global Convertibles Fund, which lost 3% so far this year against stumbling equity markets, believes that although the environment is now very uncertain, there will not be a repeat of the sell-off in convertible bonds seen in 2008 – when the asset class behaved inconsistently.

Barnier bites back over Basel jibes

EU internal markets commissioner Michel Barnier released a statement in direct response to a call from JP Morgan chief executive Jamie Dimon to consider quitting the "anti-American" Basel Committee on Banking Supervision, 

Vickers harmonies

The Vickers report: nice ideas, needs some work — but is there enough legal basis to get the reforms passed? It’s worth asking.

Staley Defends Dimon Basel Bashing

At a glance: everything you need to know from the Vickers report

UK banks face tough new raft of reforms

The Vickers report also said banks must maintain additional loss-absorbing capital, such as so-called bail-in bonds or contingent convertible bonds known as “Cocos” over and above their equity, equal to a further 7 to 10 per cent of assets adjusted for risk. That rule puts the UK on a par with Switzerland, which also has an outsized banking sector. Both countries are seeking to avoid the problems of Iceland and Ireland, where financial industry woes devastated the broader economy.

ICB gives bail-in the thumbs up

Proposals by the UK Independent Commission on Banking published on Monday stopped short of backing contingent capital as a fully fledged asset-class and instead pushed for outstanding long-dated debt to act as a cushion to protect taxpayers from future losses.

Just the facts: the Vickers report

British banks must separate their high street and investment banking operations. The ringfence must contain all retail and small business deposits and their overdrafts. Investment banking activities including derivatives, debt and equity underwriting and investing and trading in securities must fall outside. 

ICB: No clash with EC despite 10% RWA

The UK's Independent Commission on Banking says that its reforms for banks to hold equity capital of at least 10 per cent do not clash with European capital requirements proposals, despite this directly contradicting the EU's maximum harmonisation rule.

Fed's Williams: Set SIFI Surcharge High Enough To Avoid Fail

San Francisco Federal Reserve President John Williams Friday said additional capital requirements for banks considered to be 'systemically important financial institutions' must be high enough to prevent their failure and, as a result, protect the broader economy.

Banks face loss-absorbing debt cushion demand

The ICB is set to recommend banks hold 10 percent core capital as well as the loss-absorbing debt buffer to cushion their retail banking. Exactly what kind of debt that is has yet to be defined. It could be so-called contingent capital -- debt that converts into equity or takes a write-down at a trigger point, to bolster capital when a bank is under stress - or "bail-inable" debt, which would recapitalise a bank by converting debt into equity in the event that a bank failed.

Swiss committee backs 19% capital reqs

The economics committee of the lower house of parliament voted by 18 votes to six to endorse the country's move to oblige its two main banks UBS and Credit Suisse to have a 19% total capital.

Asian banks accept G-Sifi surcharge

The state-owned Bank of China calls for contingent capital to be allowed to be issued as part of the surcharge, arguing that with tier one capital already used to fill Basel III capital requirements, financing pressure on the capital market will "further intensify" without alternative funding.