Barclays and JP Morgan breach South Korean regulations
The Financial Supervisory Service (FSS), South Korea’s financial regulator, has sent warnings to local Barclays and JP Morgan units, stating that they have breached Korean regulations by selling inappropriate currency derivatives. Barclays had apparently sold currency derivatives to blacklisted exporters while JP Morgan had sold derivatives that caused harm to six companies.

UK’s PRA to resolve failed lenders with minimal risks
Hector Sants, who will head UK’s Prudential Regulatory Authority (PRA), has stated that the new banking regulator will be responsible for resolving failed lenders with minimal risks rather than preventing them from failing. This is in contrast to expectations placed on the UK’s Financial Services Authority (FSA) during the recent financial crisis, where the FSA was judged on its ability to prevent bank failures. The PRA will replace the FSA in 2012.  

IMF and World Bank report highlights SARB’s lack of authority
The International Monetary Fund (IMF) and the World Bank have issued a report underlining South Africa Reserve Bank (SARB)’s lack of authority to deal with bank-related issues. The report stated that the banking regulator needs to assume responsibility for the issuance and cancellation of banking licenses as well as for failing banks in order to minimize risks to the country’s banking sector.

Goldman Sachs appoints regulatory chief for securities
Goldman Sachs has appointed Theo Lubke as chief regulatory reform officer for its securities division. He will be responsible for implementing regulatory reforms to ensure compliance with the Dodd-Frank regulation. Lubke was previously senior vice-president at the Federal Reserve Bank of New York.

Re-disseminated by The Asian Ba...