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Dec 3, 2013

U.S. regulators plan December 10 vote Volcker rule vote

WASHINGTON (Reuters) – Wall Street banks will get the final decision about a controversial ban on betting with their own money next week after years of debate, as three U.S. regulators each announced meetings to vote on the Volcker rule.

The U.S. Federal Reserve and two other finance watchdogs – out of a total of five who need to approve the rule – said on Tuesday they planned to hold public meetings on December 10, in line with what some of them had signaled.

Nov 26, 2013

U.S. watchdog gives foreign banks more time on swap rules

WASHINGTON (Reuters) – The U.S. swaps regulator issued a temporary reprieve from its rules for foreign banks after closing a loophole that had allowed trading to continue outside regulated platforms in the United States.

Led by Gary Gensler, a former Goldman Sachs investment banker, the Commodity Futures Trading Commission has issued a slew of new requirements to get a grip on the $630 trillion swaps market after the devastating 2007-09 financial crisis.

Nov 26, 2013

JPMorgan, mortgages drag down third-quarter U.S. bank profits

WASHINGTON (Reuters) – Huge legal costs at JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) and slowing demand for mortgages as interest rates rose caused the first decline in bank profits since 2009, a third-quarter regulatory update said on Tuesday.

Higher interest rates lowered the value of fixed income assets and sapped demand for mortgage refinancing, the Federal Deposit Insurance Corporation said.

Nov 26, 2013

Litigation, mortgage demand weigh on U.S. bank profits in Q3 -FDIC

WASHINGTON, Nov 26 (Reuters) – Net income for U.S. banks
declined 3.9 percent year-on-year in the third quarter, a top
federal banking regulator said on Tuesday, weighed down by
litigation costs and a sharp drop in mortgage demand.

A $4 billion increase in litigation expenses at one
institution was the main cause for the drop, the Federal Deposit
Insurance Corp said. The agency did not name the bank.

Nov 22, 2013

U.S. Fed’s Tarullo wants more tools to counter shadow bank risks

WASHINGTON, Nov 22 (Reuters) – Global financial watchdogs
should have more policy tools and powers over firms such as
hedge funds to counter the risk of a devastating run on
investment banks, the U.S. Federal Reserve’s top regulator said
on Friday.

Fed Governor Daniel Tarullo unveiled new details of the
central bank’s plans to require banks to hold more capital if
they rely heavily on raising short-term cash from other banks,
and also pushed regulators writing global rules to do more.

Nov 22, 2013

Fed’s Tarullo details plans to counter bank runs

WASHINGTON (Reuters) – Global regulators should have more policy tools to counter the risk of devastating bank runs and should have powers over a wide array of market participants, U.S. Federal Reserve Governor Dan Tarullo said on Friday.

“There is a need to supplement prudential bank regulation with a third set of policy options in the form of regulatory tools that can be applied on a market-wide basis,” Tarullo said at a conference on shadow banking.

Nov 21, 2013

Bank trading rule under fire, Fed says could delay

WASHINGTON, Nov 20 (Reuters) – U.S. regulators are
considering whether to give banks more time to comply with the
Volcker rule, which bans them from gambling with their own
money, Federal Reserve Vice-Chair Janet Yellen said in a Nov. 18
letter.

Yellen, nominated by President Barack Obama to lead the Fed,
did not say whether an extension would be granted, but pointed
out that the law permits regulators to give banks up to three
one-year extensions if necessary.

Nov 18, 2013

U.S. CFTC prepared to adopt Volcker rule -chairman

NEW YORK, Nov 18 (Reuters) – The U.S. swaps watchdog is
preparing to adopt the Volcker rule, which would ban banks from
gambling in financial markets with their own money, but has not
yet reached agreement with four other agencies also working on
the provision, the agency’s head said on Monday.

The rule, named after former U.S. Federal Reserve Chairman
Paul Volcker, is one of the most controversial pieces of
post-crisis Wall Street reform. Treasury Secretary Jack Lew is
pushing for it to be finished this year.

Nov 15, 2013

House Republicans chide U.S. regulator over swap rules

WASHINGTON (Reuters) – Prominent Republicans in the House of Representatives on Friday threw their weight behind industry complaints that the nation’s derivatives regulator is confusing markets as it rushes through a plethora of new rules.

Frank Lucas, who chairs the House Agriculture Committee, said the way the Commodity Futures Trading Commission issued additional guidance on one of its rules this week was “irresponsible,” and that it raised legal questions.

Nov 14, 2013

Fed should be tougher on large banks, Yellen says

WASHINGTON, Nov 14 (Reuters) – Big banks can still borrow
more cheaply than competitors and should face tougher rules, the
prospective new head of the U.S. Federal Reserve told lawmakers
on Thursday.

Large banks may have an edge because markets think they have
government backing in times of crisis, said Janet Yellen,
President Barack Obama’s choice to be the Fed’s new head,
unveiling some new steps the central bank could take to
encourage those firms to downsize.

    • 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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