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Apr 8, 2014

U.S. House panel to vote on swaps regulator mandate

WASHINGTON, April 7 (Reuters) – Four U.S. lawmakers launched
a bill on Monday to rewrite the rules of of the Commodity
Futures Trading Commission (CFTC), giving more leeway to smaller
players in the derivative markets it oversees.

The agency became one of the most prolific reformers of Wall
Street after the financial crisis under its previous Chairman
Gary Gensler, who was frequently criticised for his hard-nosed
style and sometimes-hasty adoption of new rules.

Apr 7, 2014

Fed gives banks more time on Volcker rule detail

WASHINGTON (Reuters) – The U.S. Federal Reserve will give banks two more years to divest collateralized loan obligations (CLOs) that fall under the Volcker rule, a part of the Dodd-Frank financial law that bans banks from making a range of risky investments.

The Fed said banks will now have until July 21, 2017 to shed these funds, which pool together risky loans.

Apr 3, 2014

U.S. futures regulator CFTC probing speed traders

WASHINGTON (Reuters) – The U.S. Commodity Futures Trading Commission is investigating high-frequency traders to see if they were breaching the derivatives regulator’s rules, its chief said on Thursday.

“Staff (is) responding to concerns brought to us about certain practices, whether it be spoofing just to give one example, whether that’s running afoul of our rule,” Acting Chairman Mark Wetjen told reporters during a meeting.

Apr 3, 2014

US CFTC pledges swaps relief for public utilities

WASHINGTON, April 3 (Reuters) – The U.S. Commodity Futures
Trading Commission plans to ease its new swaps rules to help
public power utilities using swaps to hedge price risk, the head
of the derivatives regulator said on Thursday.

The agency will propose to make it easier for electricity
and natural gas utilities to continue to use these products
without incurring the cost that comes from tighter new swaps
laws written after the financial crisis.

Apr 2, 2014

U.S. regulators warn banks about rise in cyber-attacks

WASHINGTON (Reuters) – A group of top U.S. regulators on Wednesday warned about the threat of rising cyber-attacks on banks’ websites and their cash machines, urging the industry to put proper measures in place to guard against fraud.

The Federal Financial Institutions Examination Council (FFIEC) said it had seen a rise of so-called denial-of-service attacks on banks’ websites, which were sometimes a cover for criminals to commit fraud.

Mar 31, 2014

U.S. Treasury unit to support CFTC on swaps data

WASHINGTON, March 31 (Reuters) – A U.S. Treasury Department
unit said Monday it had signed a formal agreement with the
Commodity Futures Trading Commission to help it sort out a raft
of derivatives data and get a better handle on the global $690
trillion market.

The CFTC, which oversees futures and swaps, has complained
it still is not getting a full and clear picture of what is
happening in the derivatives market because the data it receives
from market participants is not adequate.

Mar 29, 2014

Fed to review stress test procedures after correction

WASHINGTON (Reuters) – The Federal Reserve on Saturday said it was reviewing the procedures of a closely watched exam banks must pass each year to prove their robustness after it had to correct the results.

The U.S. central bank, which regards these so-called stress tests as an increasingly important tool in safeguarding the health of the financial industry after the crisis, could tweak its procedures as a result, a spokeswoman said.

Mar 27, 2014

U.S. fines Morgan Stanley for not segregating client funds

WASHINGTON (Reuters) – The Commodity Futures Trading Commission on Thursday fined Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) $490,000 for violating rules that require futures brokers to protect clients by keeping their money segregated from other funds on the bank’s books.

Morgan Stanley’s futures trading unit transferred some $16 million from a segregated client account in 2013, and it also mixed segregated funds and its own money during a six-month period in 2012.

Mar 26, 2014

Fed bars shareholder payout plans from Citi, four other banks

WASHINGTON (Reuters) – The U.S. Federal Reserve on Wednesday rejected Citigroup’s planned payout to shareholders because of shortcomings found in its annual check-up of the financial health of the country’s biggest banks, the second time Citi was dealt a blow in the so-called stress tests.

Citi was among five banks that the Federal Reserve blocked from going through with planned payouts because of results from the stress tests.

Mar 26, 2014

U.S. banks brace for second Fed health check in a week

WASHINGTON (Reuters) – U.S. banks will tell shareholders on Wednesday how much they plan to pay out after the U.S. Federal Reserve unveils whether they can afford the cost and still be robust enough to weather the next crisis.

It is part of a two-step annual regulatory check-up of the health of the largest U.S. banks. Last week, the Fed said that all but one of 30 banks had passed a model run of a simulated crisis similar to 2007-09 credit meltdown.

    • 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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