GFMA: News on the global financial markets

Papademos emphasises need for Greece to keep euro
Greek Prime Minister Lucas Papademos said the country must keep the euro, amid concerns that the troubled nation will leave the monetary union. "Our membership of the euro is a guarantee of monetary stability and creates the right conditions for sustainable growth," Papademos told lawmakers. "Our membership of the euro is the only choice." Bloomberg Businessweek(16 Nov.)

Lenders aim to maintain funds for Eastern European units
The European Bank for Reconstruction and Development is in talks with banks and officials to prevent funds for banking divisions in Eastern Europe from decreasing. In 2008, Europe's largest lenders vowed to support their eastern subsidiaries after Lehman Brothers Holdings collapsed. This time, the solution will be different, said Piroska Nagy, the EBRD's director of country strategy and policy. "What's needed in the new situation is heightened coordination," Nagy said. "Otherwise, we'll have negative spillovers from narrowly nation-based solutions." Bloomberg(15 Nov.)

Ermotti is named permanent CEO at UBS
Sergio Ermotti, named interim CEO at UBS in September, was appointed permanent CEO of the Swiss banking giant. UBS also moved forward the start date for Chairman-designate Axel Weber, former president of Germany's Bundesbank. Weber plans to be in Switzerland early next year to discuss ideas with Ermotti and to meet major UBS clients. Reuters(15 Nov.), Bloomberg(16 Nov.), Bloomberg(15 Nov.)

• Other News

Citigroup reportedly considers cutting 3,000 jobs
The Wall Street Journal (tiered subscription model) (16 Nov.)

Regulatory Roundup

European Parliament supports limits on short-selling and CDS
The European Parliament approved rules restricting naked credit default swaps and short-selling of sovereign debt. "The rules will impose much more transparency and virtually ban certain CDS trades, thereby making speculation on a country's default more difficult," Parliament said. EU governments must approve the rules for them to go into effect. The Wall Street Journal (tiered subscription model)/Dow Jones Newswires(15 Nov.)

Osborne rejects calls to introduce tougher bank rules earlier
UK Chancellor George Osborne confirmed that the Finance Bill will not include reforms for the banking industry as recommended by the Independent Commission on Banking. Some officials called for introducing the commission's recommendations sooner than planned. Osborne said trying to "shoehorn" the commission's rules on ring-fencing retail banking from investment banking into the legislation would "be a mistake". The Telegraph (London)(15 Nov.)

RBA outlines terms of liquidity facility for banks
The Reserve Bank of Australia unveiled plans for the Committed Liquidity Facility, which would help banks meet Basel III rules. The facility, to launch in 2015, will charge a fee based on the size of commitment. The Sydney Morning Herald (Australia)/Reuters(16 Nov.), Bloomberg(15 Nov.), The Wall Street Journal (tiered subscription model)/Dow Jones Newswires(15 Nov.)