Anlegergerecht

“In a way fair for investors.” Since June 2012 new rules have been in place for the investment side of German banks, which must now, according to the 4 Mar 2013 F.A.Z., “disclose fees, keep a record of what is said during investment consultations and give a copy of this record to the consulting clients. Investment advisors must be able to show documentation proving that they have been trained to have expertise in this area and that they have professional liability insurance.” Critics of the “gray capital market” say these rules are insufficient.

(On LAY grr geh RECT.)

Trennbanken

Separation banks.” Germany’s ruling coalition has indicated that it wants to pass legislation that prevents banks from speculating with money from savings accounts. ZDF’s Valerie Haller said this would split today’s universal German banks into two entities under one roof: one for “consumer business” and one for “risk business” (probably “commercial banking” and “investment banking” in English). If the laws are in fact drafted and then pass, the new rules would come into force two years from now.

Update on 5 Feb 2013: Chancellor Angela Merkel’s cabinet has announced it will start putting together “a comprehensive bank regulation package” on Wed. 6 Feb 2013. They say it will include civil and criminal punishments for managers whose assumption of risk endangers their institutions, will separate “speculative banking” from “customer banking” and will require banks to have emergency plans in place in case of worst-case scenarios.

Update on 7 Feb 2013: They did it. On Wed. 6 Feb 2013 Finance Minister Wolfgang Schäuble (CDU) announced the proposals in his characteristically clear, reasonable, reliable-sounding way. The opposition criticized that the new banking regulations are late and don’t go far enough. “Too late and too vague,” said the SPD’s chancellor candidate Peer Steinbrück, who said he submitted a proposal to separate universal banks six months ago. About ten large banks in Germany will be affected by the new rules.

(TRENN bonk en.)

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