On June 12 2012 the US Federal banking agencies proposed for comment, in three separate but related proposals, significant changes to the US regulatory capital framework. One proposal applies the Basel III capital framework to almost all US banking organisations.
Join us for an overview and discussion about the three proposals, and to learn more about:
• The new capital requirements
• Components of common equity, additional Tier 1
• Types of financial products that will no longer receive beneficial regulatory treatment
• Regulatory deductions
• Statutory bail-in
• Differences between the proposed rules and Basel III and CRD IV
• Risk weights
• Danielle Myles, IFLR (moderator)
• Charles Horn, Morrison & Foerster
• Dwight Smith, Morrison & Foerster
• Adriaan Van der Knaap, StormHarbour Securities
In December the BCBS put out the new Basel framework for comment. This new regulatory capital regime would be an important change, requiring that banks raise their regulatory capital levels, maintain higher tier one specifically, provide greater transparency and account for derivatives and securitisation. The proposals are consistent with the statements made by the G20; however, considered with other regulatory reforms in the US and Europe, the new Basel framework will require that financial institutions re-think many aspects of their operations and financing plans.
Topics will include:
- The basics of the proposed framework and key changes
- The new definitions of tier one and tier two capital
- The proposed regulatory adjustments, including deferred tax assets
- The proposed treatment of derivatives, repo activities and securitisations
- The effect on funding costs, the hybrid securities market, and capital structure
- The interplay with other pending regulatory reforms
Tom Young, editor, IFLR
Anna Pinedo, Morrison & Foerster LLP
Oliver Ireland, Morrison & Foerster LLP
Dr Elaine Buckberg, NERA Economic Consulting
Basel III is coming – and with it, a host of new demands for banks around capital and liquidity requirements. While implementation has recently been extended till 2019, banks still need to act now to ensure they’re ready to meet the new compliance regime. Equally importantly, now is the time to adapt your operating strategy to ensure that the additional demands don’t damage profitability.
One particular area of concern is risk management. Basel III will mean that banks need a unified view on risk across their entire business to underpin all kinds of investment decisions. But historically, few banks have operated in such a unified way. So how can you gain that single picture of current risk exposure, and provide that information in a relevant way to traders, analysts and senior managers – quickly and cost-effectively?
This free webinar gives you an outstanding insight into what the requirements are, how some of your peers are addressing them and how Oracle Financial Services can help you consolidate analytical silos to enable unified risk management.
Join Greg Clemens of Oracle Financial Services and Capgemini’s Varun Agarwal as they discuss the industry’s concerns around Basel III and how they can be addressed.
To this day, 50-80 percent of the e-waste recyclers out there are simply shoving your old electronics into sea-going shipping containers and sending the material off to China, Vietnam or West Africa. Why? Because the United States is the only country that currently allows this legally. But there are many practical and principled reasons why doing the quick and dirty with your old electronic discards is a very bad idea. Jim Puckett, Executive Director of the Basel Action Network, will explore those reasons and then offer you a better way. One that has been in the making for 8 years and is now ready for business. One that has been supported by over 70 environmental organizations. One that has been supported by Samsung, Bank of America, Capitol One, Wells Fargo and a growing number of other companies that realize that a toxic footprint is every bit as deadly as a carbon footprint. Responsible businesses finally have a one-stop solution for electronic waste!Read more >
This webinar will discuss the problems associated with the recycling and refurbishment of electronics, the need for an internal policy for recycling electronics, and tools for creating and governing a strong recycling program that will ensure corporate sustainability and vendor conformity to a high standard. The recently launched accredited and independently audited e-Stewards Certification program will be discussed as a critical tool to both define the standard and provide confidence in service providers’ on-going conformance to the standard.
Lauren Roman is the e-Stewards Business Director at the Basel Action Network (BAN). Among other things, her work includes development of the e-Stewards Certification program, as well as contributing policy expertise to the EPEAT standards development process and the United Nations’ multi-national PACE Projects.
Carol Rademtech, Practice Advisor for Sustainability for Redemtech, a leading asset recovery company and e-Steward Founder. She is a frequent speaker advocating best practices for technology reuse, privacy compliance, sustainable IT, and responsible e-waste management.
Financial institutions in Europe and the US are considering a range of products to address their funding needs. It’s a difficult task, as it’s still not known which products will receive beneficial regulatory capital treatment. National regulators also have provided guidance on additional or so-called buffer capital, as well as contingent capital products.
European banks have recently issued contingent capital products – or CoCos – and we expect additional offerings to be forthcoming. These issuances face an uncertain regulatory framework, and evolving market practice. This webinar will discuss these considerations, focusing on:
· Basel III guidance and status of implementation;
· Bail-in capital, including national guidance;
· Contingent capital products and structures;
· Market experience;
· Tax, ratings, corporate governance and other considerations relating to contingent capital; and
· Investor perspective.
· Anna Pinedo, Morrison & Foerster
· Tom Humphreys, Morrison & Foerster
· Anthony Ragozino, UBS
· Danielle Myles, IFLR (moderator)
Banks of all sizes are undertaking significant efforts to fulfill risk-based capital requirements.
This session will provide an overview of the most important regulatory developments related to capital and provides practical insights into what financial institutions should do and know when they prepare for Capital Plans and Stress Testing.
Our panel will also discuss recent related regulatory responses and debates over what should be done to avoid a repeat of the financial crisis.
Topics will include:
• Regulatory Reform related to Capital Management
• Frameworks: Basel III and Effective Stress Testing
• How to Leverage Compliance to Enhance Enterprise Risk Management
• What Financial Institutions Should Know: practical hints
The Bank of England’s Andrew Haldane outlines how best to regulate the burgeoning shadow banking sectorRead more >
According to the UK central bank’s Andrew Haldane, leverage ratios must be part of the solution to the regulatory quest to simplify the existing risk-based capital standards. Here’s whyRead more >
A discussion about significant changes in the financial services regulatory landscape brought about by the Dodd-Frank Act.
Banks of all sizes already are devoting significant time and resources to understanding the new rules of the road for regulatory capital. This session will provide an overview of the most important regulatory developments related to capital, as well as an update on market impact. The panel also will focus on the open issues related to capital and the expected timeline for additional guidance.
Topics Will Include:
• Dodd-Frank capital issues
• The Basel III framework
• Additional buffers for systemically important entities
• The intersection of resolution schemes and capital requirements: bail-in capital
• Contingent capital
• Structuring, tax and ratings considerations
The case for financial bonds is more compelling than ever. Having learned some lessons in the Great Financial Crisis of 2007-2008, banks and insurance companies have been tidying up their balance sheets. While new regulations such as Basel III require new types of bonds to be issued that offer attractive yields, increased supervision and regulation will substantially lower the risk of default.
We are convinced that the potential for spreads in the financial sector to contract is a long-term theme and has further to go in the next few years. Improving fundamentals and attractive spreads bode well for attractive returns.
Improper and inadequate management of a major kind of financial risk – liquidity risk, was a major factor in the series of events in 2007 and2008 which resulted in the failure of major investment banks including Lehman Brothers, Bear Stearns etc resulting in a full blown liquidity crisis. Inadequate IT systems in terms of data management, reporting and agile methodologies are widely blamed for this lack of transparency into risk accounting – that critical function – which makes all the difference between well & poorly managed banking conglomerates. Indeed, Risk management is not just a defensive business imperative but the best managed banks can understand their holistic risks much better to deploy their capital to obtain the best possible business outcomes. Since 2008, a raft of regulation has been passed by global banking regulators like the BCBS, the US Fed and others. These include the Basel III committee regulations, BCBS 239 principles on Risk Data Aggregation, Dodd Frank Act, the Volcker Rule,CCAR etc. Leading Global Banks are now leveraging Apache Hadoop and it’s ecosystem of projects to create holistic data management and governance architectures in support of efficient risk management across all the above areas. This webinar will discuss the business issues, technology architectures and best practices from an industry insiders perspective.Read more >
As the global economy copes with the unpredictable challenges of climate change, institutional investors are exploring the potential impact of these changes on financial assets. With recent announcements by the Financial Stability Board in Basel and the Bank of England to examine the risks posed by ‘Stranded Assets’, more investors are calculating their exposure to high carbon assets and looking for ways to diversify into low or no carbon alternatives.
There are a growing number of options available to institutional investors. Some Asset Owners have announced plans to divest from high carbon assets, while others have looked to low carbon indexes which either exclude or reweight exposure to carbon-intensive companies while limiting short-term risk against the benchmark. We invite you to join a discussion with leading experts to examine the extent to which asset owners feel they are exposed to climate risk; the role of asset managers to encourage good practice when addressing climate change and carbon risk and how asset managers can effectively implement a low carbon strategy through index funds.
Is the US framework for regulating depositary institutions, based in part on regulatory capital, prudent and effective? Financial institutions have had much of their capital eroded by write-downs, triggered, at least in part, by fair-value accounting. And government emergency measures have directly injected capital. This seminar will debate potential regulatory reforms, including:
• The future of Basel II;
• Capital ratios and risk weighting;
• Recent investor focus on tangible common equity instead of capital ratios;
• The effect of fair value accounting on financial institutions;
• Capital treatment for various securities issued as part of the government emergency measures, including CaPP and CAP;
• The performance of hybrid instruments during the downturn and the questions raised for issuers, bankers and rating agencies;
• Foreign initiatives relating to regulatory capital; and
• Considerations for Tier 1 instruments, including mandatory convertibles.
Simon Crompton, editor, IFLR
Adriaan Van Der Knaap, Chairman, UBS Global Capital Markets
Barbara Havlicek, Moody's Investors Service
Craig Emrick, Moody's Investors Service
Thomas Humphreys, Morrison & Foerster LLP
Oliver Ireland, Morrison & Foerster LLP
Financial regulatory reform legislation requires Federal banking agencies to establish minimum leverage and risk-based capital requirements. The legislation will effect a number of important changes for insured depository institutions and bank holding companies.
Financial institutions also are evaluating the impact of the proposed Basel III framework on regulatory capital requirements. These changes will affect funding costs for financial institutions going forward. Banks should begin planning now and will be required to consider a number of alternatives.
Topics will include:
•changes effected by legislation, including minimum leverage capital and risk-based capital requirements;
•the Basel III process;
•a review of hybrid securities (tax characteristics, legal form, ratings treatment);
•effect of Dodd-Frank and Basel III on certain instruments, like trust preferred securities and other innovative hybrids;
•effect of these developments on ratings for financial institutions;
•addressing outstanding hybrid securities;
•tax considerations; and
•consent solicitations, remarketings and exchange offers and other liability management options.
Thomas A Humphreys, Morrison & Foerster LLP
Anna Pinedo, Morrison & Foerster LLP
Benjamin Katz, HSBC
Lukas Becker, IFLR
Traditional application release processes based on running scripts or manual updates expose companies to risks of noncompliance with a host of industry and government regulations, such as HIPAA, Sarbanes Oxley, SSAE 16, SAS 70, PCI and Basel II.
Join Stathy Touloumis, Senior Solutions Architect at UC4, to learn how IT organizations can leverage new application release automation technologies to ensure regulatory compliance while keeping up with the pace of application changes.
Register for this webinar and learn how to:
1. Enable segregation of duties in the data center
2. Automate configuration change documentation and audit trail reporting
3. Achieve visibility into the end-to-end release process
Wesley Pullen, Vice President Global ARA Technologies for UC4, presented at Gartner's IT Infrastructure and Operations Management Summit on June 13, 2012, in Frankfurt, Germany. In his session, "Application Release Automation for DevOps: End-to-End Visibility, Control and Agility," Mr. Pullen discusses how traditional application release processes, based on running scripts or manual updates, expose companies to risks of non-compliance with a host of industry and government regulations (e.g. HIPAA, Dodd Frank and Basel II/III) and how new and unique release automation technologies address these challenges.Read more >
I would like to concentrate on types of identity theft (both individual and corporate) and major risks emanating from social networks. I will look at some of these risks and identify possible solutions to help protect you, your personal information and your company data.
Boris Agranovich: Entrepreneurial business leader with 25+ years of global experience in Financial Services, IT and Consulting . Worked in West & East Europe, Middle East, Asia Pacific. Advised executive teams on effective risk management strategies.These range from regulatory requirements such as Basel II to strategic risk propositions such as defining and setting risk appetite, embedding risk management through the organisation.
Founder of the world's premier community for Risk Managers. We help people in the risk area to be connected and the main customers are marketing managers who want to create a greater visibility for their products and services among their prospects with much better results even if they are small and don’t have large media and PR budgets.
Financial institutions are facing a number of significant challenges that will require careful analysis in the coming months. A number of provisions of the Dodd-Frank Act will affect foreign banks that conduct business in the United States. Regulatory reforms underway in the EU also will need to be factored into the business plan of any internationally active foreign bank. Finally, international bank regulators continue to discuss the Basel III framework. Panelists will discuss:
- An overview of the Dodd-Frank Act;
- The categorization of institutions as “systemically important financial institutions”;
- Application of the new resolution mechanism to the U.S. operations of a foreign bank;
- Volcker Rule restrictions;
- The effect of regulations relating to OTC derivatives;
- Resolution plans requirements;
- Regulations affecting regulatory capital, which would affect U.S. intermediate bank holding companies of international banks;
- Foreign fund exception to the private fund registration rule;
- Executive compensation and governance requirements applicable to foreign issuers;
- The Basel III Framework; and
- Regulatory reforms affecting financial institutions doing business in the EU.
Following the financial crisis, financial regulators have become increasingly focused on how compensation plans can or should be structured in order to better align the interests of executives with those of shareholders.
Our panel will discuss the regulatory guidelines and best practices that have developed, as well as alternatives for public companies, including financial institutions, to consider:
- What we learned from the TARP;
- The inter-agency statement on sound compensation policies for financial institutions;
- Basel III and compensation matters;
- Implementation of the Dodd-Frank provisions regarding incentive compensation;
- Bonus taxes and other regulatory measures;
- Innovative compensation structures;
- Conducting a pay risk assessment;
- Disclosure related issues; and
- Say-on-pay and other governance matters.
Tom Young, Managing editor, IFLR
Charles M Horn, Partner, Morrison & Foerster
Jeremy C Jennings-Mares, Partner, Morrison & Foerster (UK)
David M Lynn, Partner, Morrison & Foerster
Robert J Jackson, Jr., Associate Professor of Law, Columbia Law School