On 12 September 2010, the Basel Committee on Banking Supervision announced that it had reached certain agreements that would fundamentally strengthen global capital standards. The Committee agreed to increase the minimum common equity requirement from 2% to 4.5%. Banks would also be required to hold a capital conservation buffer of 2.5% to withstand future periods of stress, bringing the total common equity requirements to 7%. The agreement reinforced the stronger definition of capital agreed by the Committee in July and the higher capital requirements for trading, derivative and securitisation activities to be introduced at the end of 2011.

In the UK the British Bankers Association has warned that implementation of the new Basel capital requirements needs to take place "over a long timetable" and be "very carefully sequenced" to avoid prolonging the economic downturn. However, it appears that this cautious view is not shared in some other jurisdictions. For instance, the press has reported that Switzerland has already said that it would apply a "Swiss finish" to its financial sector, with its two biggest banks having to hold at least 19% in capital.

On 7 October 2010, the European Parliament issued a press release stating that an own initiative resolution on the new Basel capital requirements was passed during a plenary session. However, whilst the resolution acknowledged that the new standards tackle some of the right issues, it called for much more preparatory work before they are transposed into law. Key points in the resolution included:

Later this year the European Parliament will examine the Commission legislative proposal (CRD IV) to enshrine the new Basel capital requirements into EU law. The European Parliament resolution is helpful as it gives an indication as to the position the European Parliament will adopt. It is clear that whilst the Basel Committee's announcement in September was significant, there might still some way to go before Europe fully embraces it.

On 13 September 2010, the Determinations Panel of the Pensions Regulator (TPR) determined that financial support directions (FSDs) should be issued against six companies within the Lehman Brothers group in respect of the Lehman Brothers Pension Scheme (the Scheme).

In spite of United Kingdom, Germany and France having decided to introduce their own banking taxes, the European Commission is pushing ahead with its proposals for a Europe-wide or global tax. The Commission has issued a communication that supports introduction of a Financial Transaction Tax (FTT) at a global level and a Financial Activities Tax (FAT) throughout the EU. The Commission's proposals will be discussed by EU Finance Ministers and by the European Council in October and by the G20 in November.

The proposed FTT would be imposed on the value of each transaction entered into by a bank; this could cover all dealings in equities, bonds, currencies and derivatives. The IMF for some time has been suggesting that an FTT should be introduced globally. At the G20 summit in June 2010, the FTT was the subject of some opposition, mainly from Japan, Canada, Brazil and a number of emerging markets. Given that the Commission considers that a FTT is only workable if introduced globally, it is difficult to see how a FTT will be introduced.

The FAT would be imposed at a European level on the profits of banks and the wages paid to their staff. Whilst it is more likely that a FAT will be introduced than an FTT, the Commission will have to gain support from all EU member states in order to implement the changes. It remains to be seen how this will be achieved. So far the Czech Republic has indicated that it will not support an EU-wide financial tax.

The difficulties of introducing a global or Europe-wide tax do not mean that banks will avoid a bank tax. Each of the UK, France and Germany is in the process of introducing its own bank levy which will be charged on certain liabilities shown in a bank’s balance sheet. It is a practical certainty that these levies will be introduced.