Life after Basel III


To be held on Monday, June 4, 2018


Speakers

  • Tom Huertas (EY)

  • Barnabas Reynolds (Shearman & Sterling)

  • Patrick Jenkins (FT)


Agenda

 

It is ten years since Hank Paulson told the Wall Street Journal “I do believe that the worst is likely to be behind us". The ensuing crisis prompted a great re-regulation of banks: tougher capital and liquidity requirements (Basel III), recovery and solution regimes etc. ‘The taxpayer must never again be on the hook for bank failures’, or so it went.

But with the EU’s single supervisory mechanism in place and the fourth capital requirements directive due, even in Europe the sense of urgency has waned. And, importantly, the recovery in (most) banks’ balance sheets – with the US first again – has provided reassurance. The winding down of central bank support is causing some tremors, but this is a capital markets rather than a lack-of-capital story.

So, where next for prudential regulation? In the US, the Trump de-regulatory push has capital requirements in its sights. In Europe, stress-testing by bank supervisors continues to act as a reminder that not all banks are safe and sound – Italian non-performing loans anyone? And then there are the virtual issues, such as banks’ reliance on cloud services to store data. The big hosts are Amazon, Google and Microsoft, which, to put it mildly, are less heavily regulated. 

A perennial problem is how to ensure effective cross-border supervision of multi-national institutions when the main regulators are regionally or nationally based. Brexit has thrown up an interesting case study in UK-EU co-operation, for instance. 

With all that in mind, we are delighted to convene a distinguished panel to share their thoughts on where regulation may take us next:

  • Tom Huertas is a partner at EY and co-ordinator of its Global Regulatory Network. A former senior executive at the FSA and alternate chair of the EBA, he served on the Basel Committee on Banking Supervision and was a leading figure in the FSB’s resolution work. He is a visiting professor at the Goethe University in Frankfurt.
  • Barnabas Reynolds is a partner at Shearman & Sterling, and global head of the financial regulatory practice, advising on investment bank prudential law and regulation (including numerous bank restructurings in Europe against the backdrop of BRRD). He co-edits the Journal of International Banking Law and Regulation.
  • Patrick Jenkins has been financial editor of the FT since 2014 and, as an assistant editor, is part of its senior management team. Prior to that, he was banking editor from June 2009. His other roles have included companies editor, editor of the FT world insurance report and Frankfurt correspondent.

If you (or a colleague or friend) would like to join us, please let us know by calling 0207 621 1056 or emailing alex@csfi.org. As usual, wine and sandwiches will be provided.

Sincerely yours,

Andrew Hilton
Director, CSFI