Find all School-related info fast with the new School-Specific MBA Forum

It is currently 02 Sep 2014, 23:06

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

For those who want to work in financial services in Europe

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
Senior Manager
Senior Manager
User avatar
Joined: 30 Jul 2007
Posts: 385
Location: Europe
Schools: St. Gallen '09
Followers: 6

Kudos [?]: 56 [0], given: 5

GMAT Tests User
For those who want to work in financial services in Europe [#permalink] New post 01 Aug 2008, 00:12
Something to think about:

http://www.ft.com/cms/s/0/e27636d2-5f32 ... 07658.html

City warns against EU crackdown

By Nikki Tait in Brussels

Published: July 31 2008 20:32 | Last updated: July 31 2008 20:32

European Commission efforts to strengthen the regulation of financial services in the wake of the credit crunch risk exacerbating the sector’s downturn and adding to the tens of thousands of job losses already forecast, the City of London will warn on Friday.

“Proposed changes could greatly increase the cost of capital across Europe with detrimental effects far beyond the financial services industry,” said Stuart Fraser, chairman of policy and resources at the City of London, which will on Friday publish its gloomy forecasts.

His comments are targeted, in particular, at amendments to the European Union’s capital requirements directive. These are due to be formally presented by the Commission in the autumn as part of its broader response to the crisis in the financial markets.

Draft proposals have already been circulated in Brussels, and one possible measure could involve tightening the “originate-to-distribute” model used by banks to devise then off-load securitised products that have been at the heart of the recent crisis. Brussels has suggested that originators should retain capital for at least 10 per cent of the exposures they securitise. This idea has, however, already been attacked by banking organisations.

Mr Fraser cited the proposal as the type of regulation that the City believed could seriously hamper the financial sector’s prospects.

“The message we’re trying to get across is that it’s a very difficult environment for financial services. What we don’t need is regulation that will exacerbate the downturn. The 10 per cent holding rule is exactly what we don’t need,” he said.

Intervention by the City – home to the UK’s largest financial services sector – brought an equally forceful response from Brussels. “If the industry wants to avoid a materially tighter regulatory environment, they must come forward with more robust and meaningful proposals to clean up their act,” said a Commission official.

“When the financial sector is in such a state that losses risk being socialised while profits from risk-taking are privatised, nobody should be surprised if, in the absence of meaningful and comprehensive industry response, there is a regulatory response to address the misaligned incentives that are at the heart of the problems that have arisen.”

Investor confidence would not be restored by a race to the bottom, said the official.

The City is preparing to publish its annual report on wholesale financial services and their role in the EU economy. It is expected to predict the sector’s contribution to the EU economy by 2009 will have fallen by 8.3 per cent from the €225bn ($350bn, £177bn) of last year.

About 75,000 jobs could also be lost in the sector, which last year employed a record 1.4m people in the 27 EU member states.
Kaplan GMAT Prep Discount CodesKnewton GMAT Discount CodesGMAT Pill GMAT Discount Codes
For those who want to work in financial services in Europe   [#permalink] 01 Aug 2008, 00:12
    Similar topics Author Replies Last post
Similar
Topics:
Dear MBAs who want to work at start-ups BarneyStinson 0 02 Feb 2010, 18:27
Who wants to work at this hedge fund? nink 0 01 Dec 2008, 15:30
A question to all those who are working carpeD 2 20 Sep 2007, 21:45
Super long post for those who want to know about the GMAT wiseguy 1 15 May 2005, 15:06
As a rule, those who work in the book publishing industry qhoc0010 11 07 Jan 2005, 06:16
Display posts from previous: Sort by

For those who want to work in financial services in Europe

  Question banks Downloads My Bookmarks Reviews Important topics  


cron

GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.