EBA offers the – wicked – prospect of standard terms and conditions for CoCos.

Today the EBA published the final version of its updated report on the monitoring of Additional Tier 1 capital instruments. Regarding the most controversial issue, the use of contingent clauses, the report recommends disallowing them in the terms and conditions of EU issuances. The output of EBA’s own funds subgroup invariantly meets the highest quality […]

BOE’s Financial Policy Committee – split on Cocos?

Martin Taylor’s  speech, The fence and the pendulum of last week will probably achieve the same hype-status as Andrew Haldane’s The dog and the frisbee. While the latter is kind of naive in that it is hopeful of bank regulation (albeit less complex preferably), the former is anything but. Moreover, Taylor pulls no punches in lashing […]

Supervising Large, Complex Financial Companies, staff report by FRB NY

This is a very interesting document: “Supervising Large, Complex Financial Companies: What Do Supervisors Do?” Written by staff of the Federal Reserve Bank of New York, the paper describes the Federal Reserve’s supervisory approach for large, complex financial companies and how prudential supervisory activities are structured, staffed, and implemented on a day‐to‐day basis at the […]

UPDATE 2: The EBA’s laudable effort to tame Additional Tier 1 issuances

This week, the EBA held a public hearing on the 4 May report on AT1 issuances, see my previous posts on this. Click here for the PowerPoint that the EBA prepared. Apparently no surprises. On the hot topic of Contingent Clauses, the EBA reports that it “confirms its previous reserves, and recommends disallowing contingent clauses”. […]

UPDATE: The EBA’s laudable effort to tame Additional Tier 1 issuances

Today, the EBA held a public hearing on the 4 May report on AT1 issuances, see my previous post on this. Click here for the PowerPoint that the EBA prepared. Apparently no surprises. On the hot topic of Contingent Clauses, the EBA reports that it “confirms its previous reserves, and recommends disallowing contingent clauses”. A […]

The EBA’s laudable effort to tame Additional Tier 1 issuances

This week, the EBA issued its preliminary report on the monitoring of Additional Tier 1 (AT1) instruments of EU. It is a great document for outsiders to obtain a feel for what these instruments are like and how they behave in their regulated habitat. For example, an important critique pertains to the complexity of these […]