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  • A plan to merge four struggling Spanish banks has collapsed over the weak state of one of the institutions known as cajas.
  • The European Commission has released its proposed directive governing the mortgage market.
  • The European Council failed to agree on the Hungarian presidency’s latest compromise on the short-selling and naked credit default swap regulation in a meeting yesterday.
  • The Brazilian over-the-counter derivatives market should change in order to allow for more creativity and innovation, especially in collateral management systems, according to Otavio Yazbek, commissioner at the Brazilian regulator Comissao de Valores Mobiliarios.
  • China’s onshore foreign exchange options market will likely grow at a similarly slow pace to the recently-launched credit derivative market in the country, industry officials say.
  • The House Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises will hold a legislative hearing on eight bills Thursday designed to dramatically limit the reach of the government sponsored enterprise.