FSB Extends Too-Big-to-Fail Bank Resolution to Insurance Firms
August 12, 2013
The
Financial Stability Board said an extended version of its guidance on
the resolution of systemically important banks will apply to non-bank
financial institutions, such as Allianz SE (ALV) and other large
insurers.The Basel, Switzerland-based body set up by the Group of 20 nations has developed “annexes” to its advice for local regulators of financial institutions that aren’t lenders, according to an e-mailed statement today. The FSB asked for responses from market participants by Oct. 15.
The FSB, led by Bank of England Governor Mark Carney, is coordinating the global regulatory response to the worst financial crisis since the Great Depression to prevent a repeat of the turmoil that followed the collapse of Lehman Brothers Holdings Inc. and bailout of American International Group Inc.
Read More Here
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26 June 2013
Meeting of the Financial Stability Board in Basel on 24 June
At its meeting in Basel yesterday, the Financial Stability Board (FSB) discussed vulnerabilities affecting the global financial system and progress in authorities' work to strengthen global financial regulation.Vulnerabilities in the financial system
Despite important progress in strengthening the resilience of the global financial system, some parts of the system remain in a state of incomplete repair. Some jurisdictions need to continue to improve the capitalization of their banking systems. The balance sheet assessment to be undertaken by the ECB later this year in preparation for the single supervisory mechanism, together with clarity on the availability of adequate capital backstops, will be important to strengthening the Eurozone banking system. In other parts of the world where credit growth has been very rapid over recent years, building further resilience remains a priority.
Over the last several weeks, volatility in interest rates, asset prices and capital flows has increased. Market participants and supervisory authorities should incorporate in their stress tests scenarios that involve considerably elevated interest rate risk, widening credit spreads, falls in asset prices, and material volatility in foreign exchange markets and capital flows. Constrained capital levels in banks have been a contributory factor to reduced secondary bond market liquidity, potentially resulting in larger price movements in these markets in times of stress.
Resolution of financial institutions
The FSB approved for public release a set of guidance papers to support the recovery and resolution planning process for systemically important financial institutions. The guidance covers the development of effective resolution strategies, stress scenarios and recovery triggers, and the identification of critical functions. They will be released in July.
The FSB also reviewed Annexes to be added to the FSB Key Attributes of Effective Resolution Regimes on the resolution of financial market infrastructures, the resolution of systemic insurance groups, the protection of client and custody assets in resolution and information sharing among relevant authorities for resolution purposes. These will be issued for public consultation later this summer.
The FSB also agreed to release for public consultation a methodology for assessing the implementation by countries of the Key Attributes of Effective Resolution Regimes. Such a methodology is required for an international standard to be assessed under the IMF and World Bank's FSAP program.
Global Systemically Important Insurers (G-SIIs)
The FSB reviewed the assessment methodology and policy measures for global systemically important insurers, developed by the International Association of Insurance Supervisors (IAIS) taking into account the results of a public consultation. Based on this assessment methodology, the FSB and national authorities, in consultation with the IAIS, will identify an initial list of G-SIIs in July 2013. A decision on the G-SII status of and appropriate risk mitigating measures for, major reinsurers will be made in July 2014.
The policy measures that will apply to G-SIIs include the recovery and resolution planning requirements under the FSB's Key Attributes, enhanced group-wide supervision and higher loss absorbency requirements. As a foundation for higher loss absorbency requirements, the IAIS will as a first step develop straightforward, backstop capital requirements to apply to all group activities, including non-insurance subsidiaries, to be finalized by the time of the G20 Summit in 2014.
Over-the-counter (OTC) derivatives reforms
The FSB discussed progress in the implementation of reforms to OTC derivatives markets. Given the highly international nature of these markets, members stressed the importance and urgency of resolving remaining issues arising from the cross-border application of rules, including to bridge remaining differences between jurisdictions' rules and implementation timetables, ahead of the G20 Summit in early September.
The FSB agreed that global aggregation of trade repository data is essential to enable comprehensive monitoring of risks to financial stability, and launched a feasibility study of options for how information from trade repositories can be aggregated and shared among authorities. The results of the study will be published in the first half of 2014.
Read More Here
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Financial Stability Board
FSB consults on implementation guidance for the Key Attributes of Effective Resolution Regimes
The FSB launches a public consultation on
- The Application of the Key Attributes of Effective Resolution Regimes to Non-Bank Financial Institutions. The proposed guidance is designed to assist jurisdictions and authorities in implementing the Key Attributes with respect to resolution regimes for FMIs (including central counterparties, central securities depositories and securities settlement systems), insurers and firms with holdings of client assets.
- Information Sharing for Resolution Purposes. The proposed guidance sets out principles for the design of legal gateways and confidentiality regimes to allow the sharing of non-public information between domestic and foreign authorities that is necessary for planning and carrying out resolution.
The FSB welcomes comments on the consultative documents by 15 October 2013. Responses should be sent to fsb@bis.org.
Read More Here
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RussiaToday
Published on Feb 2, 2013
In
this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss
the global yellow cake baking, talcum powder shaking, perpetual war
making, balloon boy chasing, fake it til you make it economy in which
spoof trading and a shadow banking system collateralised by a
combination of liar loans and temporary workers consuming genetically
modified food-like products produces such heroes for our times as Robb
U, the guy who was handed $6 million in loans based on having a YouTube
music video with a million plus views. In the second half of the show,
Max Keiser talks to former Scotland Yard fraud squad detective, Rowan
Bosworth-Davies of Rowans-Blog.blogspot.co.uk about justice departments
and regulators going after the 'little guy' because he is 'easier' to
get than the too-big-to-fail.Follow Max Keiser on Twitter: http://twitter.com/maxkeiser
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Published on Jul 17, 2013
ttp://barnabyisright.com,
I found it.As predicted. Apologies it took so long.
Unsurprisingly, the evidence was fairly well buried. Naturally, the government does not want you to know what they are doing.
Just like the Canadian government did in March, and just as Europe, the USA and the UK have now done, the Australian government too is now beginning to make good on its 2010 G20 commitment to implement the Goldman Sachs-chaired, internationalist Financial Stability Board's new regime for bailing out the banks using depositors' money.
On page 134 of the Australian Government Budget 2013-14 Portfolio Budget Statements, under the section for the Australian Prudential Regulation Authority, we find the first of APRA's main strategic objectives for 2013-14. It can be effectively summarised as "business as usual".
Their second strategic objective for 2013-14, is to:
• consolidate the prudential framework by enhancing prudential standards where appropriate, in line with the global reform initiatives endorsed by the G20 and overseen by the Financial Stability Board; [see image at top of this post]
Those "global reform initiatives endorsed by the G20″ include the FSB plan to "bail-in" insolvent banks:

FSB: 'Key Attributes of Effective Resolution Regimes for Financial Institutions', Annex III (click to enlarge)
In the waffle that follows, we find further that:
APRA will focus on implementing the new global bank liquidity framework in Australia...

page 134, Portfolio Budget Statements, Australian Prudential Regulation Authority, Australian Government Budget 2013-14.
This is likely referring in particular to the Basel III International Framework For Liquidity Risk Measurement, Standards, and Monitoring.
When published in combination with the previously mentioned strategic objective to "consolidate the prudential framework... in line with the global reform initiatives endorsed by the G20 and overseen by the Financial Stability Board", the implication is crystal clear.
"Global bank liquidity framework" is really just technocrat-ese for "global bankster plan to prop up insolvent banks using other people's money, and so instantly impoverish everyone who still has any savings left".
For further proof that what this all means is the Australian government planning to steal your money to "bail-in" so-called "systemically-important financial institutions" (SIFI's) — under the orders of an unelected international body (of bankers and bureaucrats) you've never heard of; a body funded by the Bank for International Settlements (BIS), and chaired consecutively by Goldman Sachs alumni — then please study the detailed primary source evidence in this blog's original breaking story published on April 1st -
G20 Governments All Agreed to Cyprus-Style Theft Of Bank Deposits ... In 2010
That's something else to thank our recently-deposed PM Julia Gillard for doing, without our knowledge or permission.
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