Britain should hold a second referendum on whether to withdraw from the EU, said Goldman Sachs CEO Lloyd Blankfein. "So much at stake, why not make sure consensus still there?" he asked in a Twitter post.
Legislators and central bankers are considering regulations for cryptocurrency trades to protect investors, said Ewald Nowotny, governing council member of the European Central Bank. Investors must understand the risks involved with cryptocurrencies, he said.
US Office of Management and Budget Director Mick Mulvaney will take over as temporary head of the Consumer Financial Protection Bureau, filling the vacancy left by the resignation of Richard Cordray. Mulvaney has been a vocal critic of the agency.
Legislators have had limited success repealing Obama-era financial regulations, but the Trump administration's leadership picks for key agencies can make a difference in how rules are implemented and enforced, writes Jesse Hamilton. The Volcker rule and capital requirements are at the top of the list for review, Hamilton notes.
After Brexit, UK banks should be free to offer services to institutional clients and large sophisticated investors in the EU, bank lobbying group UK Finance said. UK and EU supervisors should grant mutual recognition to each other's rules, so British banks licenced by the Bank of England would not have to obtain licences in the EU to do business outside the UK, the group said.
The Netherlands must prepare for the UK to leave the EU without having reached agreement on a post-Brexit transition, the Dutch parliament's European affairs committee said. "What was long considered impossible is suddenly thinkable: a chaos scenario in which the UK abruptly leaves the EU on 29 March 2019 without an exit agreement, a transition period or a framework for future relations," according to a committee report.
Investors in Italy's Monte dei Paschi di Siena bank are suing over bonds cancelled after a state bailout this year. They argue there was no legal basis for the annulment.
The European Securities and Markets Authority announced increased scrutiny of closet indexing, in which funds charge higher fees for using their expertise to pick stocks but actually just track market indexes. ESMA says it will request input from national regulators while also mandating them to heighten vigilance.
The European Commission has reportedly made an informal agreement to offer equivalent status to US trading venues ahead of Europe's revised Markets in Financial Instruments Directive, with similar approval for Swiss venues said to be possible but as yet unconfirmed. If EU states agree to the deal, it would ease investor access across European, Swiss and US markets.
China is strengthening risk-management procedures and oversight for the China Development Bank, the Export-Import Bank of China and the Agricultural Development Bank of China. Safeguards taking effect at the start of the year include mandatory reviews of internal capital adequacy at least once a year.
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