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May 17, 2014

U.S. states take lead in writing bitcoin rules

CHICAGO (Reuters) – A task force of U.S. state regulators is working on the first bitcoin rule-book, the head of the group said, hoping to protect users of virtual currency from fraud without smothering the fledgling technology.

Numerous companies in the United States enable customers to pay for goods and services in virtual currencies. But since bitcoins are not regulated by the federal government, users face a maze of rules in the 50 states.

May 7, 2014

Insight: Washington delays big banks from writing wills before a collapse

WASHINGTON (Reuters) – Almost six years after Lehman Brothers collapsed, U.S. regulators still haven’t given Wall Street banks individual feedback on how to improve so-called “living wills” that detail how to go bankrupt without spending taxpayer dollars or causing a market panic.

The banks have already had to submit two versions of the documents, neither of which were up to the standards of the Federal Deposit Insurance Corp and the Federal Reserve. With the next draft of the documents due in July, banks say they can do little to improve the plans if there are no detailed instructions from the government, sources familiar with the process say.

May 7, 2014

Washington delays big banks from writing wills before a collapse

WASHINGTON, May 7 (Reuters) – Almost six years after Lehman
Brothers collapsed, U.S. regulators still haven’t given Wall
Street banks individual feedback on how to improve so-called
“living wills” that detail how to go bankrupt without spending
taxpayer dollars or causing a market panic.

The banks have already had to submit two versions of the
documents, neither of which were up to the standards of the
Federal Deposit Insurance Corp and the Federal Reserve. With the
next draft of the documents due in July, banks say they can do
little to improve the plans if there are no detailed
instructions from the government, sources familiar with the
process say.

Apr 28, 2014

REUTERS SUMMIT, UPDATE 1-US CFTC launches inquiry into evasion of swaps rules

WASHINGTON, April 28 (Reuters) – The U.S. swaps regulator
plans to research whether U.S. banks’ overseas trading activity
is complying with its rules, a senior official said on Monday,
as Wall Street adapts to new rules for the $690 trillion global
market.

Scott O’Malia, a Republican member of the Commodity Futures
Trading Commision, said he had asked the agency’s staff for a
legal opinion on whether U.S. banks were possibly evading its
rules when doing business in Europe.

Apr 28, 2014

U.S. CFTC launches inquiry into evasion of swaps rules

WASHINGTON (Reuters) – The U.S. swaps regulator plans to research whether U.S. banks’ overseas trading activity is complying with its rules, a senior official said on Monday, as Wall Street adapts to new rules for the $690 trillion global market.

Scott O’Malia, a Republican member of the Commodity Futures Trading Commision, said he had asked the agency’s staff for a legal opinion on whether U.S. banks were possibly evading its rules when doing business in Europe.

Apr 16, 2014

New York prosecutor probes high-speed trading: source

By Karen Freifeld and Douwe Miedema

(Reuters) – The New York attorney general is probing more than half a dozen high-speed trading firms, a person familiar with the matter said on Wednesday, as part of his wide-ranging probe into alleged unfair technology advantages on Wall Street.

Attorney General Eric Schneiderman’s office is seeking information on special relationships between exchanges and so-called dark pools, platforms where large trades take place out of sight of the rest of the market.

Apr 14, 2014

Arcadia in settlement talks in CFTC manipulation case

WASHINGTON, April 14 (Reuters) – Arcadia Petroleum and
Parnon Energy have entered talks to settle accusations by the
Commodity Futures Trading Commission that they fixed the
physical crude oil market, possibly ending one of its most
highly-publicized oil manipulation cases.

The derivatives regulator in May 2011 sued two well-known
traders, James Dyer of Parnon Energy and Nick Wildgoose of
Arcadia, and their firms for allegedly making $50 million by
squeezing markets in 2008.

Apr 9, 2014

U.S. House panel to look at aluminum prices, warehousing

WASHINGTON, April 9 (Reuters) – A U.S. congressman on
Wednesday expressed concern to regulators about inflated
aluminum prices as a result of the London Metals Exchange’s
(LME) policies, urging the Commodity Futures Trading Commission
to be tougher on the issue.

“The CFTC acknowledges that they have the authority to
regulate and investigate concerns about the aluminum supply,”
said Virginia Republican Bob Goodlatte, who was speaking at a
meeting of the House Committee on Agriculture.

Apr 9, 2014

Firms’ debt loads risk for emerging economies -IMF

WASHINGTON, April 9 (Reuters) – Large debt piles at
companies are rendering emerging economies more fragile because
they could quickly transmit trouble to banking systems in a
crisis, the International Monetary Fund said on Wednesday.

Debt at risk of not being repaid by companies that have
already borrowed heavily could increase to $740 billion, or 35
percent of the total, the Fund found in a model test simulating
a severe crisis.

Apr 8, 2014

Senate panel approves Massad to head CFTC

WASHINGTON (Reuters) – A U.S. Senate panel on Tuesday approved Timothy Massad as the next chairman of the Commodity Futures Trading Commission, but a second nominee to the derivatives watchdog hit a snag.

Massad, a lawyer who oversaw the U.S. government’s $700 billion bank bailout program, was nominated by President Barack Obama to replace Gary Gensler. He has spent most of his career at Wall Street law firm Cravath, Swaine & Moore, working on a wide variety of corporate transaction.

    • 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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