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Feb 26, 2014

U.S. Senate to grill bankers, prosecutors over Swiss tax spat

WASHINGTON (Reuters) – U.S. senators will grill both sides in a five-year-old conflict over Swiss bankers helping Americans dodge taxes, questioning U.S. law enforcers and Swiss bankers in a hearing on Wednesday.

In what may set the tone for the session, the Senate Permanent Subcommittee on Investigations on Tuesday alleged new misdeeds by Switzerland’s Credit Suisse and accused the U.S. Justice Department of dragging its feet.

Feb 25, 2014

U.S. senator presses CFTC nominees to rein in banks in physical market

WASHINGTON, Feb 25 (Reuters) – Regulators should clamp down
on banks owning metals warehouses, oil pipelines and other
commodity assets, Democratic Senator Sherrod Brown told two
nominees to the country’s derivatives regulator on Tuesday.

Brown, a Wall Street critic who has campaigned against
banks’ physical commodity activities, urged the two to be
tougher on the banks, ahead of their confirmation as members of
the Commodity Futures Trading Commission.

Feb 25, 2014

Tighter policy a tool to deal with U.S. systemic risk: Fed’s Tarullo

ARLINGTON, Virginia (Reuters) – The Federal Reserve’s top regulator waded into the debate over whether monetary policy should be tightened in the face of financial stability risks, saying on Tuesday that such a move cannot be “taken off the table.”

Fed Governor Daniel Tarullo, the U.S. central bank’s point person on financial supervision, said that while investors are taking on more risks in high-yield corporate bonds and leveraged loans, for example, overall there is not a need to change policy at the moment.

Feb 21, 2014

Fed officials wanted more power over Wall St during 2008 crisis

WASHINGTON, Feb 21 (Reuters) – U.S. central bankers thought
they should get more regulatory powers in return for providing
cheap cash to Wall Street banks during the 2008 credit crisis,
according to Federal Reserve transcripts released on Friday.

Powerful investment banks such as Goldman Sachs and
Morgan Stanley had access to a raft of measures to prop
up markets during the 2008 credit meltdown, but the Federal
Reserve had little say over them.

Feb 19, 2014

Fed adopts tough capital rules for foreign banks

WASHINGTON (Reuters) – The Federal Reserve on Tuesday adopted tight new rules for foreign banks to shield the U.S. taxpayer from costly bailouts, ceding only minor concessions despite pressure from abroad to weaken the rule.

Foreign banks with sizable operations on Wall Street such as Deutsche Bank and Barclays had pushed back hard against the plan because it means they will need to transfer costly capital from Europe.

Feb 18, 2014

U.S. Fed issues tough final capital rule for foreign banks

WASHINGTON, Feb 18 (Reuters) – The U.S. Federal Reserve on
Tuesday released the final version of tight new capital rules
for foreign banks, giving them a year longer to meet the
standard and applying it to fewer banks than in a first draft.

The reform is designed to address concerns that U.S.
taxpayers will need to foot the bill if European and Asian
regulators treat U.S. subsidiaries with low priority when
rescuing one of their banks.

Feb 16, 2014

Foreign banks bracing for tough U.S. Fed capital rules

WASHINGTON (Reuters) – Overseas banks look set to win only minor concessions when the Federal Reserve signs off on new capital rules next week, as they become increasingly resigned to the fact that the cost of doing business in the United States will go up.

The Fed, whose board of governors meets on Tuesday, will require overseas banks to hold as much capital in the United States as their local rivals.

Feb 12, 2014

U.S. banks OK to trade on European derivatives platforms

WASHINGTON (Reuters) – The U.S. derivatives regulator said on Wednesday that Wall Street banks can trade on European platforms that are not registered with the U.S., a decision expected to mainly affect the London market.

The Commodity Futures Trading Commission’s announcement came just days before tougher rules governing the $630 trillion unregulated derivatives markets will take effect. The markets were at the center of the recent financial crisis, and the agency is now forcing much of the trading onto regulated platforms in an effort to make them safer.

Feb 12, 2014

Bitcoin hit by denial of service attacks as regulators prepare clampdown

WASHINGTON/NEW YORK (Reuters) – Bitcoin is being hit by attacks from unknown computer hackers who are sending “mutated” lines of code into the program that runs the virtual currency, a spokeswoman from its main trade organization said in a statement on Tuesday.

The attacks are responsible for problems experienced by two bitcoin exchanges that caused them to temporarily halt withdrawals by customers who stored bitcoins in digital wallets provided by the exchanges, the Bitcoin Foundation said in a statement.

Feb 12, 2014

New York planning a reality check for virtual currencies

WASHINGTON/NEW YORK (Reuters) – New York’s financial regulator on Tuesday revealed new details on how the state plans to govern virtual currencies such as bitcoin, just as problems in the nascent market took a turn for the worse.

Benjamin Lawsky, superintendent of New York’s Department of Financial Services, expects to adopt consumer disclosure rules, capital requirements and a framework for permissible investments with consumer money.

    • 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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