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* As of 2018, the ECB will ask eurozone banks to set aside funds to cover 100% of their newly classified nonperforming unsecured debt within two years, with all secured bad debt to be covered within seven years, Reuters reported, citing a draft proposal. The new requirements will not apply to the about [euro]1 trillion worth of bad debt already on the lenders' books.
* The European Commission said it is backing the ECB in its bid for greater regulatory powers for clearing of euro-denominated transactions to fulfill its monetary policy responsibilities, giving it more control over central counterparties based both within and outside the bloc.
* The European Commission is expected to publish today proposed reforms to the way sales taxes are levied in the EU in a bid to eliminate fraud and reduce the need for a harmonized value-added tax rate policy, among other reasons, according to a draft document seen by Reuters. The commission also plans to give states more authority in setting VAT rates, with new proposals for VAT rate reform expected to be ready by November.
UK AND IRELAND
* The Bank of England's Financial Policy Committee warned that market reliance on the London Interbank Offered Rate benchmark in setting mortgages, credit card loans and other contracts across the world created a financial stability risk, Reuters reported, citing minutes, published yesterday, of the committee's Sept. 20 meeting.
* Funds managed and advised by J.C. Flowers & Co. LLC sold a further stake in U.K.-based OneSavings Bank Plc, according to an announcement to the London Stock Exchange this morning. The funds sold 20 million shares in the company, representing about 8% of its share capital. They were sold at 375 pence per share, with gross proceeds totaling £75 million.
* Berkshire Hathaway International Insurance Ltd. and MedPro Group Inc. have agreed to add U.K. insurer Premium Medical Protection Ltd. to the Berkshire Hathaway...