FT Alphaville » FSA

Is the FSA (still) a leaky ship?

Paul Murphy — Wed, 27 Mar 2013 16:46:24 +0000

It may seem fanciful that Tidjane Thiam and other directors at Prudential believed that a leak of their planned $35bn takeover of AIA three years ago might come from the FSA. But they did. Here’s paragraph 4.6 from the final notice censuring Mr Thiam and fining the Pru $30m…

4.6. The directors of Prudential, including Mr Thiam, met on 31 January 2010 to be briefed on the proposed transaction by Credit Suisse. There was a consensus between the directors of Prudential at this meeting that:

(1) a leak was the key risk to the transaction;

(2) the FSA was one of a number of parties which might be the cause of a leak; and

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The Pru and thin-skinned, idiot regulation

Paul Murphy — Wed, 27 Mar 2013 10:44:44 +0000

A theory was gaining ground on Wednesday that, having utterly failed in any way to deal with Britain’s cartwheeling banks ahead of the crisis, the FSA, Britain’s alleged financial regulator, has now set its sights on wrecking the healthy side of Britain’s financial sector.

The Prudential has been fined £30m, and its strikingly successful chief executive, Tidjane Thiam, has been censured, seemingly for worrying that someone at the FSA might possibly leak news of the Pru’s ultimately bungled takeover bid for AIA three years ago.

Continue reading: The Pru and thin-skinned, idiot regulation

The three ‘muscateers’, captain ‘caos’ and SUPERMAN Assemble (at UBS)

Lisa Pollack — Wed, 19 Dec 2012 09:32:17 +0000

The competition is on! Sure, UBS is already ahead of Barclays in the FSA fine stakes, but will the inevitable embarrassing communiques beat “done for you, big boy”? Opening gambit from the FSA’s Final Notice to UBS on Wednesday morning (emphasis ours):

For example, on 18 September 2008, a Trader explained to a Broker: “if you keep 6s [i.e. the six month JPY LIBOR rate] unchanged today … I will f[**]king do one humongous deal with you …

Continue reading: The three ‘muscateers’, captain ‘caos’ and SUPERMAN Assemble (at UBS)

‘Whoops’ said the regulator trying to enact Basel 2.5 locally

Lisa Pollack — Mon, 10 Dec 2012 12:58:10 +0000

Rule-making is a natural response to a financial crisis. There is, of course, also a tendency for the new rules to be more complex than their predecessors. But this evolution has given some regulators pause for thought.

Consider the below a case study, as fuel for debate. It’s an example of when a local regulator managed to fudge the implementation of the edicts from the gnomes of Basel…

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FSA takes baton from Wheatley! Sits down, writes questions, hits publish

Lisa Pollack — Wed, 05 Dec 2012 11:27:23 +0000

Consultation paper from the Financial Services authority, fresh off the printing press on Wednesday morning...

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FSA approves HKEx takeover of LME

Masa Serdarevic — Thu, 29 Nov 2012 10:10:42 +0000

The London Metal Exchange said that the UK’s Financial Services Authority had given approval for its $2.2bn acquisition by Hong Kong Exchanges and Clearing. The transaction is expected to close next week.

But there are still hurdles. First, a court hearing. From the statement by HKEx:

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UBS fined £29.7m for significant failings in Adoboli case

Izabella Kaminska — Mon, 26 Nov 2012 09:58:52 +0000

Definitely a turn-around for the books in the Kweku Adoboli case.

From the FSA on Monday, emphasis FT Alphaville’s (and the whole release really is worth a read):

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OK, who tied the FSA’s hands to the mast…

Lisa Pollack — Thu, 22 Nov 2012 13:19:35 +0000

Section 348 of the Financial Services and Markets Act 2000 is what the FSA refers to when one calls to get information on most things that are of interest. Their hands are tied. Even if they are bursting to share information, they can't. Should it be this way?

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Thank you, Libor

Lisa Pollack — Wed, 21 Nov 2012 15:33:03 +0000

“A judgmental structure of supervision that emphasises the big issues has to be matched by proper transparency . . . or it won’t work.” Andrew Bailey, head of prudential regulation at the Financial Services Authority, told that to parliamentarians on Monday.

Too bad there’s seemingly no tradition of transparent supervision in the UK, especially when it comes to banks.

Continue reading: Thank you, Libor

Mizuho’s love triangle found 33% guilty

Bryce Elder — Thu, 15 Nov 2012 15:33:56 +0000

So they’re innocent. Really.

Yes, really. From Bloomberg:

Two girlfriends of former Mizuho International Plc investment banker Thomas Ammann were found not guilty of illegally trading on tips from him about Canon Inc.’s acquisition of OCE NV.

Continue reading: Mizuho’s love triangle found 33% guilty