BofA Boss The New 'Teacher's Pet'

Bloomberg reports that Bank of America CEO Brian Moynihan looks like he's the new poster child for the Obama administration's attempt to overhaul the financial system.

The news agency quotes Valerie Jarret, the President's liaison to corporate America, who said: 'He has been willing to speak out bravely in his industry on the need for reform measures. And he has been willing to come to Washington, and roll up his sleeves and work on the issue'.

In the meantime, The Daily Telegraph reports that HSBC CEO Michael Geoghegan has warned that new rules which require banks to hold larger capital reserves for risky assets could throw the financial system into a second crisis.

Speaking to an audience in New York (nice to see he gets out from his Hong Kong base now and again), Geohegan said: 'This isn't banks whingeing. It's a real concern. What if we are right and it leads to further deleveraging ? If it drives risk into unregulated parts of the system ? And leads to regulatory arbitrage ? Theses are all consequences banks and their regulators should want to avoid'.

Finally, The Guardian reports that UK securities regulator The Financial Services Authority (FSA) appears to have got a reprieve. The Conservatives pledged to do away with the regulator in the event that they came to power, but there was no mention of this in the UK coalition government's recently-published policy document. Some are suggesting that the FSA's more recent tougher stance on white collar wrongdoing and bank bonuses might have resulted in extending its life.

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