WASHINGTON, Feb 17 (Reuters) – JPMorgan Chase & Co
bears the highest potential hazard to the financial system if it
were to fail, a staff study released by a U.S. government
research agency showed, providing a first-of-its-kind numerical
risk ranking of U.S. banks.
The bank had a “systemic risk score” of 5.05 percent for
2013 in a group of 33 large U.S. bank holding companies, the
study by staffers at the Treasury Department’s Office of
Financial Research (OFR) said.
WASHINGTON, Feb 12 (Reuters) – U.S. rules to bolster banks’
ability to withstand shocks could dampen derivative markets, the
head of the Commodity Futures Trading Commission said on
Thursday, an issue regulators would meet to discuss.
The so-called leverage ratio forces banks to hold a fixed
percentage of their total assets in equity capital, a measure
designed to prevent costly taxpayer bail-outs such as those
during the 2007-09 credit crisis.
NEW YORK/WASHINGTON, Feb 4 (Reuters) – U.S. Bancorp agreed
to pay $18 million to former customers of Peregrine Financial
Group Inc to resolve claims that the large U.S. bank aided a
massive fraud by the failed futures brokerage’s now-imprisoned
founder, Russell Wasendorf Sr.
A consent order approved on Wednesday resolves claims by the
U.S. Commodity Futures Trading Commission that the
Minneapolis-based lender’s U.S. Bank NA unit let Wasendorf treat
an account meant to hold Peregrine customer funds as his
“personal piggy bank.”
WASHINGTON, Feb 3 (Reuters) – The U.S. government’s top
financial research group on Tuesday launched a new website, a
move aimed at helping it gain a greater profile separate from
the Treasury Department, which houses the powerful agency.
The Office of Financial Research was set up after the
2007-09 credit meltdown to help regulators map financial markets
and has the power to retrieve data from banks, including through
WASHINGTON, Feb 2 (Reuters) – A plan by regulators for the
world’s biggest banks to hold more capital to withstand
financial shocks is overly demanding, major U.S. bank groups
said on Monday, urging further study into how to avoid future
The proposal by the Financial Stability Board, a global
group of regulators, would force big banks to have between 16
and 20 percent of their liabilities in equity and long-term
bonds that can be written down in times of financial stress.
WASHINGTON, Jan 30 (Reuters) – The Federal Reserve plans to
propose a rule that applies minimum margin requirements to
certain forms of securities financing deals, in a move aimed at
reining in the shadow banking industry, a top Fed official said
Fed Governor Daniel Tarullo, the central bank’s chief
overseer of its bank regulation, said the Fed aims to take a
margin requirement rule passed last year by the Financial
Stability Board (FSB), a global group of regulators, and apply
it to the United States.
Jan 21 (Reuters) – The top U.S. financial risk watchdog
pledged to revise the procedures used to designate firms as
super-risky and make them more transparent on Wednesday, after a
flood of criticism from insurers and asset managers that the
process was too opaque.
Staff read out a number of proposals at a meeting of the
Financial Stability Oversight Council (FSOC), which acts to
identify which parts of the financial system are “too big to
WASHINGTON, Jan 13 (Reuters) – MetLife said it would
file on Tuesday a lawsuit against regulators subjecting it to
tougher oversight, challenging their verdict the firm harbors
enough risk to endanger the financial system in a crisis.
The company, the largest U.S. life insurer, unsuccessfully
contested the decision by the Financial Stability Oversight
Council (FSOC) in a hearing last month, and a lawsuit was its
last resort to escape being overseen by the U.S. Federal
WASHINGTON (Reuters) – The Federal Reserve’s new role as the top U.S. insurance regulator will be in the spotlight this week as MetLife decides whether to challenge tougher oversight by the central bank in court.
The Fed would face months of scrutiny of its fledgling oversight of the sector if MetLife sues regulators over their decision to tag it as a firm that has the potential to destabilize the wider financial system.
WASHINGTON, Dec 24 (Reuters) – The U.S. Commodity Futures
Trading Commission said on Wednesday it had fined MF Global
Holdings Ltd for wrongdoing during the collapse of the futures
brokerage, but will continue its lawsuit against the firm’s
former chief, Jon Corzine.
A federal judge in Manhattan approved a settlement in which
the company will pay a $100 million fine and be jointly
responsible for returning $1.212 billion in client funds that
another unit had been ordered to restitute last year.