Europe

The Bank of England (BoE) recently released the results of its latest round of stress tests, which involved seven of the biggest U.K. lenders. While some of the banks emerged from the tests relatively unscathed, Royal Bank of Scotland and Standard Chartered fell below the minimum capital requirements needed to weather another financial crisis. The BoE said that it did not require a revised capital plan from any of the banks tested. More inside.

Image: The European Central Bank’s transparency woes continue as Ombudsman Emily O’Reilly is urging the central bank to build a robust rules of engagement practice by putting a stop to banker meetings ahead of setting policy. O’Reilly said ECB officials should not give investors any advantage over rivals prior to setting policy such as interest rates. Details inside.

Deutsche Bank Chief Executive John Cryan said earlier this week that bonuses don’t necessarily make bankers work harder; instead some employees feel that they are entitled to an outsized incentive despite bad performance. Cryan’s message come weeks after a warning was issued at Deutsche Bank about rewarding staff with new-year bonuses in light of fines the bank incurred for misconduct. Details inside.

German investigators have launched a new criminal probe into Volkswagen (VW) in light of the automaker’s recent emissions scandal. Prosecutors are examining five suspects who might be involved in this investigation. An Irish Times report said that prosecutors in Braunschweig are now investigating tax evasion allegations at the scandal-ridden German automaker. The prosecution is looking […]

The EU is considering delaying the release of a comprehensive regulation that will overhaul financial market rules. The delay comes amid mounting concerns that the legislation’s accompanying technologies may not be ready in time for the January 2017 start date. Due to the complexity of the rule, banks and other financial institutions may need extra time to put the appropriate systems in place. More inside.

The U.K. Serious Fraud Office has dropped a two-year case against Japanese endoscope maker Olympus Corp., in the wake of a London court ruling that doctoring reports to auditors is not a criminal offence under English law. The move is a setback for SFO Director David Green, who has been putting the English law to test so more companies can be held accountable for their actions. Details inside.

Image: The U.K. Financial Conduct Authority is planning to unveil a “regulatory sandbox” for companies to test new products, services, or business models without facing enforcement actions. “To promote competition it is vital that we support firms—both regulated and unregulated, whether large incumbent or small start-ups—that want to bring new ideas that can benefit consumers to market,” says Christopher Woolard, FCA director of strategy and competition. The project will launch for testing by spring 2016. More inside.