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Oct 11, 2014

Fed’s Tarullo: global downside risks are policy factor

WASHINGTON, Oct 11 (Reuters) – Downside risks to the global
economy are a factor the Federal Reserve will have to consider
even as the U.S. economy recovers from the 2007-2009 financial
crisis, Fed Governor Daniel Tarullo said on Saturday.

Tarullo, a voting member of the Fed’s policymaking
committee, also said the U.S. economy is facing deep problems
from decaying infrastructure to a polarized income distribution
that could weaken demand in the future.

Oct 10, 2014

U.S. and UK to test big bank collapse in joint model run

WASHINGTON (Reuters) – Regulators from the United States and the United Kingdom will get together in a war room next week to see if they can cope with any possible fall-out when the next big bank topples over, the two countries said on Friday.

Treasury Secretary Jack Lew and the UK’s Chancellor of the Exchequer, George Osborne, on Monday will run a joint exercise simulating how they would prop up a large bank with operations in both countries that has landed in trouble.

Oct 8, 2014

Banks need overhaul, but risk to recovery, IMF says

WASHINGTON (Reuters) – A much-needed pruning of banks across the world could stifle lending and dampen economic recovery, the International Monetary Fund said on Wednesday.

To boost profits, banks need to raise prices in certain business lines, pull out of others altogether, and put their money where it yielded more, the Fund said.

Oct 6, 2014

FSOC may tweak process for spotting super-risky firms

WASHINGTON (Reuters) – The U.S. top financial risk council may tweak the way in which it identifies insurers and other companies that are not banks as systemically important, a process the industry and politicians have fiercely criticized.

The Financial Stability Oversight Council, a group of the nation’s main financial regulators, has named three such companies as being so important that their demise could pose risks to the global system, subjecting them to tougher oversight.

Oct 3, 2014

Insurer MetLife contests official tag as super-risky firm

WASHINGTON (Reuters) – Insurer MetLife said on Friday it would fight a plan by the U.S. risk council to designate it as a firm whose demise could risk global finance, a tag that brings far greater regulatory scrutiny.

The company had asked the Financial Stability Oversight Council (FSOC) to call a meeting at which it could give written and oral evidence of why it disagreed with the proposed determination, it said in a regulatory filing.

Oct 3, 2014

Banks seek flexibility in last major post-financial crisis regulation

LONDON/WASHINGTON, Oct 3 (Reuters) – The world’s largest
banks are pushing regulators for more flexibility in the last
major set of rules to come out of the global financial crisis:
requirements that would double the capital cushion banks are
forced to hold.

Leaders of the 20 most important economies, the G20, in
November will issue a draft rule, which many of the biggest
banks say need to be tailored to each institution.

Oct 2, 2014

Speed trader charged in first U.S. criminal ‘spoofing’ case

WASHINGTON (Reuters) – High-frequency trader Michael Coscia was charged with manipulating commodity futures prices in the first U.S. federal criminal prosecution of the practice of “spoofing,” the Justice Department said on Thursday.

Coscia and his high-speed trading firm, Panther Energy Trading, were fined $3.1 million by regulators in the United States and Britain in July 2013 for market manipulation and ordered to disgorge $2.7 million in profits.

Oct 1, 2014

Need to monitor, not stifle shadow banks, IMF says

WASHINGTON, Oct 1 (Reuters) – Regulators should keep a close
watch over the shadow banking system to protect its useful
functions without any undue risks to the financial system, the
International Monetary Fund said on Wednesday.

Shadow banks are a loosely defined group of financial
industry operators that provide credit without officially being
banks, such as hedge funds, money market funds, finance
companies and securitization vehicles.

Sep 26, 2014

U.S. senators urge CFTC to review aluminum markets, LME

WASHINGTON, Sept 26 (Reuters) – U.S. Senator Sherrod Brown
on Friday urged the Commodity Futures Trading Commission to
crack down on the London Metal Exchange, citing concerns its
policies may be inflating aluminum prices.

Brown, a crusader against the role that Wall Street banks
play in commodity markets, warned that Congress would write new
laws if the CFTC and foreign regulators were unable to fix what
he called “ongoing irregularities” in the market.

Sep 24, 2014

New US CFTC member wants cross-border rules rethink

WASHINGTON, Sept 23 (Reuters) – The U.S. swaps regulator
should revise its policy that determines how its rules apply
overseas, a new commissioner said on Tuesday, wading into a row
between international regulators and his own agency.

Rather than sticking to its so-called cross-border guidance,
the Commodity Futures Trading Commission should start a more
formal rule-making process and take in industry comments,
Commissioner Chris Giancarlo said.

    • 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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