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.
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.
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.
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.
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.
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.
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.
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
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.
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.
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.