While Northern Rock's dilemma is yet to be solved, the U.K. bank regulator Financial Services Authority (FSA) is already prepping a new scheme that attempts to curtail future bailouts of other U.K. banks facing a similar situation. The plan will allow the FSA to step in when a bank hits serious trouble. The FSA released its discussion paper on the proposed plan entitled Review of the Liquidity Requirements for Banks and Building Societies at the end of December and will accept market responses to its suggestions up until March 31. Over the summer, the discussion paper will then be followed by a consultation on firmer proposals. The FSA would be allowed to seize and protect depositors' cash when a bank gets into difficulties, according to the proposals under discussion,. Among several of the initiatives discussed is the development of a series of triggers allowing the FSA to step in to protect deposits, and to access more information to assess a bank's liquidity situation. The FSA plans to develop U.K. policy in line with international work being undertaken by the Basel Committee and the Committee of European Banking Supervisors (CEBS). "This paper draws important lessons from how we saw banks and building societies coping with the recent market turbulence. We also analyze the liquidity risks inherent in some of the newer structures such as SIVs, and other off balance sheet or contingent arrangements," said Thomas Huertas, acting managing director of wholesale markets at the FSA. He was referencing to the proposals that currently under a consultation period. "Nor is it a one-sided review -- we also challenge our own existing policies, as well as firms' liquidity management." Royal Bank of Scotland analysts said it is yet unclear how this proposal will affect securitizations.
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Initial analyses of Home Mortgage Disclosure Act data show UWM ahead in 2023 loan numbers and dollar volume, but Rocket's market share still looks competitive.
March 28 -
There are two series, 2024-1 and 2024-2, that have revolving periods—three for the 2024-1 and five for the 2024-2—during which noteholders will not receive any principal.
March 28 -
The trust employs a 24-month revolving period. There is an increased risk that collateral quality could deteriorate as the transaction evolves with new collateral.
March 27 -
Harmonizing standards for liquidity coverage ratios and discount window pledges could prevent the type of strains that led to last year's bank failures, according to a new paper whose authors include former Federal Reserve Govs. Dan Tarullo and Jeremy Stein.
March 27 - Yahoo Finance Feed
The banking giant has launched an online platform that links small-business owners and entrepreneurs in need of capital to community development financial institutions. The platform was developed in partnership with Community Reinvestment Fund USA.
March 27 -
Audited financials, proof of fidelity bonds and errors and omissions insurance must be provided on Ginnie Mae Central after May 13.
March 27