Today's other stories in brief

MEPs back tougher rules on bank capital

The European Parliament adopted tougher bank capital rules today as a first step towards restoring confidence in markets shaken by the worst financial crisis in decades.

The parliament voted by 454 in favour, 106 against, with 25 abstentions on updating rules that European Union banks will have to comply with from 2010.

“This is obviously just a first step, a response to the financial crisis, but it won’t be enough,” said Othmar Karas, the Austrian centre-right lawmaker who steered the measure through parliament.

To make markets safer for investors, banks will be required to retain 5 per cent of the securitised products they originate and sell. The reform also caps how much banks can lend each other, and sets up so-called colleges of supervisors for each cross-border bank so that regulators can work more closely.

Banks will be required to retain 5 per cent of securitised products they originate and sell – and top up capital against it – to try to ensure they have properly assessed risks in the products. – (Reuters)

FGS joins forces with RSM International

Dublin-based accountancy firm FGS has joined forces with RSM International, the fifth largest network of accountancy firms. RSM, which employs more than 30,000 people in 72 countries, is ranked the fifth largest accountancy firm in the US and China, with fee income of $3.6 billion (€2.7 billion).

FGS managing partner Ian Duffy said that customers were demanding closer ties with international networks as the gap narrowed between the larger so-called “big four” firms and the second tier of accountancy practices.

BNP beats profit forecasts

BNP Paribas, France’s biggest bank by market capitalisation, posted first-quarter profits well ahead of forecasts, helped by higher earnings at its retail and investment banking operations.

Net profit fell 21 per cent from a year ago to €1.56 billion ($2.1 billion).

However, the result showed a recovery from BNP’s fourth-quarter net loss of €1.37 billion.

Pretax profit at BNP’s corporate and investment banking division rose nearly four times from last year to €1.23 billion, driven by a particularly strong performance at the bank’s fixed income division.– (Reuters)

Tullow Oil discovery in Uganda

Tullow Oil says it has made a substantial oil discovery in the Butiaba region of Uganda.

The find, at the Nsoga-1 exploration well in Block 2, is the seventh successful test of the Victoria Nile Delta site in the Lake Albert Rift Basin.