Gfma : News on the global financial markets

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Citigroup will shrink staff, Pandit says
Bloomberg (07 Dec.)

Regulatory Roundup

Market participants await EBA's CoCo term sheet
Speculation has mounted about a term sheet from the European Banking Authority covering contingent-capital financial instruments. Market participants are eagerly awaiting the results, but many are concerned that they will be disappointed. An EBA representative said the regulator's board of supervisors will meet this week to finalise the CoCo term sheet as well as bank-recapitalisation plans. Reuters/International Financing Review(06 Dec.)

ECB likely will ramp up efforts this week
Mario Draghi has a reputation for caution, but his initial efforts as president of the European Central Bank have not been overly cautious. The ECB, under Draghi, has cut interest rates, pressed for a remake of the euro zone and indicated that the bank is more willing to use its resources to battle the sovereign-debt crisis. The ECB is expected to take additional action when its policy council meets Thursday. The New York Times (tiered subscription model)(06 Dec.)

Financial-transaction tax captures public's imagination
Italian Prime Minister Mario Monti announced plans to levy a tax on some financial transactions. The tax, championed by France and Germany, has gained momentum in recent months. However, the sovereign-debt crisis has overshadowed discussions. Analysts said European leaders will be in a better position to enact such a tax if they can agree on a way to resolve the debt crisis. The New York Times (tiered subscription model)(06 Dec.)

BoE introduces sterling liquidity facility
The Bank of England aims to address potential market strains amid the worsening sovereign-debt crisis by launching a sterling liquidity facility. "This facility is designed to mitigate risks to financial stability arising from a market-wide shortage of short-term sterling liquidity," according to the central bank. Meanwhile, the Bank of England plans to look into the way bankers' compensation is calculated. Bloomberg(06 Dec.), The Wall Street Journal(06 Dec.)

EU regulators seek more concessions from Deutsche Boerse and NYSE
EU regulators told NYSE Euronext and Deutsche Boerse that they need to offer more concessions to overcome antitrust concerns about their proposed merger. Authorities said the exchanges' offer last month didn't sway rivals and customers. Bloomberg(06 Dec.), Financial Times (tiered subscription model)(06 Dec.)

• Other News

ESMA investigates credit rating agencies
Reuters (06 Dec.)

FSA is frustrated about "patchy" compliance with reporting rules
Reuters (06 Dec.)