FMLC CEO Joanna Perkins was invited to speak at a law firm in London on the topic of the E.U.’s proposed Banking Reform Package. The remarks, enclosed in the speaking notes below, identify the legal risks arising from the Reform Package, including those associated with the requirements to establish Financial Holding Companies and Intermediate Holding Companies for Third Country banking groups.
The FMLC hosted the Quadrilateral conference this year at the Bank of England. The conference is an annual meeting of the FMLC and its sister counterparts from the European Union, the United States and Japan. Held over three days (19-21 July), the Quadrilateral offered an opportunity for the FMLC to assess and discuss developments in financial markets law. On the agenda were topics as wide-ranging as the legal challenges presented by new virtual payment systems, the legal considerations of negative interest rates, a primer on clearing and margins, an in-depth look at the many legal measures related to ending “Too Big to Fail” and, of course, Brexit.
In 2009, the G20 acknowledged that the current capital requirements do not deal adequately with the ideal of returning a bank to lending after resolution because they do not provide for a means by which Banks can quickly rebuild their Basel III capital and so meet the requirements for authorisation. In consequence regulators developed standards on so-called “loss absorbing capacity” which are designed to ensure not only that banks have enough capital to absorb losses but also that they have enough to recapitalise themselves once the flow of losses has been stemmed.