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May 15, 2015

Clearing houses are big risk, top U.S. federal researcher says

WASHINGTON (Reuters) – Clearing houses, whose role to guard financial stability was much praised after the 2007-09 crisis, now pose threats themselves, the head of the top U.S. financial research agency told Reuters on Friday.

The Office of Financial Research has looked at these firms, which are for instance run by CME Group Inc. (CME.O: Quote, Profile, Research, Stock Buzz), Deutsche Boerse’s (DB1Gn.DE: Quote, Profile, Research, Stock Buzz) Eurex, and Intercontinental Exchange Inc (ICE.N: Quote, Profile, Research, Stock Buzz), to see where risk is building up.

May 14, 2015

Swaps regulator slams House bill aimed at reforming agency

WASHINGTON, May 14 (Reuters) – The head of the U.S.
derivatives market regulator on Thursday slammed a bill in the
House of Representatives to reauthorize the agency, saying the
new mandate would make it harder for it to respond quickly to
market events.

The Commodity Futures Trading Commission has raised its
profile significantly after the 2007-09 financial crisis,
imposing billions of dollars of fines on large Wall Street banks
that rigged the Libor interest rate benchmark.

May 14, 2015

Swaps regulator lashes out at House bill aimed at reforming agency

WASHINGTON, May 14 (Reuters) – The head of the U.S.
derivatives market regulator on Thursday slammed a bill in the
House of Representatives to reauthorize the agency, saying the
new mandate would make it harder for it to quickly respond to
market events.

The Commodity Futures Trading Commission has raised its
profile significantly after the 2007-09 financial crisis,
imposing billions of dollars of fines on large Wall Street banks
that rigged the Libor interest rate benchmark.

May 13, 2015

Banks must get ‘serious’ about bankruptcy plans: FDIC’s Hoenig

WASHINGTON (Reuters) – The July deadline for U.S. banks to show regulators how they can go through bankruptcy without causing wider mayhem or risk being broken up is a crucial test for the industry, a top U.S. regulator said on Wednesday.

In a wide-ranging interview at the Reuters Financial Regulation Summit, Tom Hoenig, second-in-command at the Federal Deposit Insurance Corporation, said that he was broadly behind regulatory relief provided to smaller banks in a bill introduced this week by U.S. Senator Richard Shelby, the chairman of the Senate Banking Committee.

May 11, 2015

U.S. to issue bank pay rules soon, regulator says

WASHINGTON (Reuters) – U.S. regulators will soon issue a new plan to curb excessive Wall Street pay, a top regulator told Reuters on Monday, four years after the agencies first launched the proposal.

The six agencies will re-propose a rule first offered in April of 2011 that would prohibit rewarding overly risky practices, Comptroller of the Currency Thomas Curry told the Reuters Financial Regulation Summit.

May 8, 2015

Insurers step up lobbying to battle U.S. regulators

WASHINGTON (Reuters) – Insurance firms, already among Washington’s biggest donors, are securing powerful allies in Congress as the Federal Reserve draws up nationwide capital rules for the $1 trillion industry after years of delay.

Two members of the House of Representatives who received large industry donations for their election campaigns and one senator last month started the Financial Protection and Life Insurance Caucus, grouping lawmakers pledged to vie for the industry’s interests on Capitol Hill.

May 5, 2015

U.S. presidential hopeful Sanders: Break up the big banks

WASHINGTON (Reuters) – Bernie Sanders, a self-described socialist U.S. senator who has launched a bid for the 2016 Democratic presidential nomination, said on Tuesday he will introduce a bill to break up the biggest banks, a position far to the left of the party’s front runner, Hillary Clinton.

Calls for Wall Street’s largest firms to be cut down were numerous after taxpayers spent billions of dollars to prevent the financial system from collapse during the 2007-09 financial crisis, but they have since gradually died down.

May 4, 2015

Fed’s Yellen says met firm at heart of leak probes

WASHINGTON/NEW YORK (Reuters) – U.S. Federal Reserve Chair Janet Yellen met with a research firm that later published confidential information from the central bank, she said on Monday.

Yellen met with Medley Global Advisors in June 2012, she said in a letter, months before the firm unveiled details of a September Fed meeting a day ahead of the publication of the central bank’s own record of the discussions.

Apr 30, 2015

Fed’s Tarullo wants to cut red tape for small banks

WASHINGTON, April 30 (Reuters) – Rules for small U.S. banks
should be less strict and less cumbersome than those for their
larger and more risky peers, the Federal Reserve’s top regulator
said on Thursday.

Small banks with $10 billion or less in assets could for
instance be allowed to opt into simpler capital rules, Fed
Governor Daniel Tarullo said in a speech to bankers.

Apr 24, 2015

Insight – Flash crash charges garner increasing skepticism in high-speed world

WASHINGTON (Reuters) – The notion that one man trading from his parents’ house in a working class London suburb had a material role in the 2010 Wall Street flash crash has aroused increasing skepticism from investors and traders since charges were brought on Tuesday.

    The U.S. has asked UK authorities to hand over Navinder Singh Sarao, 36, after his arrest this week on charges that he manipulated markets over several years in a fraudulent scheme that helped cause the stock market rout.

    • About Douwe

      "I head up the Financial Services team in London. We're 20 journalists, covering M&A, IPOs, restructuring, banking, real estate, investment management, hedge funds and private equity. I've worked for Reuters in Zurich, Frankfurt and Amsterdam."
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