GFMA: News on the global financial markets

Barclays calls for overhaul of complex accounting rules
Barclays Finance Director Chris Lucas suggested that fair-value accounting rules be altered because they allow banks to artificially increase profits. "It makes results difficult to explain to investors and is unhelpful for an industry that wants to rebuild confidence through transparency in financial reporting," Lucas wrote in a letter. Financial Times (tiered subscription model)(14 Nov.), Reuters(14 Nov.)

Moody's considers downgrading Greek covered bonds
Moody's Investors Service said recent events in Greece prompted a review of several classes of the country's covered bonds. Greek officials had planned a referendum on imposing a 50% haircut on the country's debt but decided to forgo the vote. The change eased market concerns about Greece, but Moody's said serious risks remain. The Wall Street Journal (tiered subscription model)/Dow Jones Newswires(11 Nov.)

Banks disclose more info as concerns mount about crisis
Some of the largest banks in the world are disclosing more information about their exposure to sovereign debt in Europe as concerns mount about the region's crisis. However, the additional information has not yet quelled investors' concerns, partly because questions remain about banks' hedging strategies to protect investments. The Wall Street Journal (tiered subscription model)(14 Nov.)

• Other News

S&P says technical error led to French rating mistake
The Wall Street Journal (tiered subscription model) (12 Nov.)

Barclays returns to public UK RMBS market
Reuters (11 Nov.)

Indonesia decides to sell 7-year Shariah-compliant notes
Bloomberg (13 Nov.)

Regulatory Roundup

S&P mistake reinvigorates EU efforts to regulate rating agencies
An erroneous downgrade of France's sovereign credit rating by Standard & Poor's bolsters EU efforts to regulate credit rating agencies. "This reinforces my conviction that Europe must have rigorous, strict and solid regulation for credit rating agencies," said Michel Barnier, the EU's internal-market commissioner. One idea is to require users to "rotate" agencies. "There is concern that mandatory rotation of agencies could be counterproductive," said Richard Hopkin, a managing director at AFME. Reuters(11 Nov.), The Guardian (London)(11 Nov.)

APEC officials vow to implement Basel III
Asia-Pacific Economic Cooperation finance ministers pledged to implement Basel III capital requirements to improve regulation of the banking industry and derivatives markets. The officials specifically noted difficulty in monitoring over-the-counter derivatives. FinancialCAD (Canada)(11 Nov.), Risk.net (subscription required)(10 Nov.)

Commentary: Financial-transaction tax is the wrong move
Columnist Jim McTague discusses the global debate about levying a tax on financial transactions. Some officials in Europe, notably French President Nicolas Sarkozy and German Chancellor Angela Merkel, are pressing for the tax, while others, including UK Prime Minister David Cameron, oppose it. In the US, President Barack Obama has voiced opposition to the idea, while two lawmakers are trying to gain support for it. Experts have warned about unintended consequences of a financial-transaction tax. Barron's (subscription required)(12 Nov.)

• Other News