The Prudential Regulation Authority may be spurred to intervene directly in the Co-Operative Bank Plc, as the U.K.’s new bank supervisor faces its first test of credibility barely a month after it was created.
Bankers’ bonuses should be deferred for as long as 10 years to hold executives accountable for risks, said Robert Jenkins, a member of a Bank of England committee charged with ensuring financial stability.
U.S. and U.K. lawmakers are increasingly calling for tougher global capital standards than those included in the so-called Basel rules, said Robert Jenkins, a member of the Bank of England’s Financial Policy Committee.
The first Basel agreement on global banking regulation, adopted in 1988, was 30 pages long and relied on simple arithmetic. The latest update, known as Basel III, runs to 509 pages and includes 78 calculus equations.
The Justice Department decision to sue Standard & Poor’s has investors asking why Moody’s Investors Service and Fitch Ratings weren’t targeted for awarding the same top grades to troubled mortgage bonds and other debt securities.