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Jan 18, 2013
via MacroScope

SEC has power to ban high-frequency trading, congressman says

Not everyone agrees that using high-speed machines to trade stocks in less time than it takes the average person to blink is a bad thing, but the people who do might be heartened by the letter a congressman sent the U.S. Securities and Exchange Commission on Friday.

Rep. Edward Markey, a Massachusetts Democrat who has waged a decades-long struggle against computerized trading sent the SEC a hint: The power to curb high-frequency trading has been within its grasp all along.

Jan 17, 2013

US Senate panel to hold anti-money laundering hearing – sources

WASHINGTON, Jan 17 (Reuters) – The U.S. Senate Banking
Committee is expected to hold a hearing soon on anti-money
laundering issues, according to people familiar with the matter,
as the area is getting more scrutiny by U.S. enforcement
authorities and regulators.

A hearing could come in early March and include testimony
from representatives of the Office of the Comptroller of the
Currency, the Federal Reserve, the Treasury Department and the
Federal Deposit Insurance Corp, one source said.

Jan 16, 2013

JPMorgan blames risk management for “London Whale” loss

NEW YORK, Jan 16 (Reuters) – Peter Weiland, the most senior
risk officer in JPMorgan Chase’s Chief Investment Office before
the “London Whale” scandal broke last April, quietly resigned in
October, according to a report by the bank that emphasizes the
CIO’s risk-management failures.

Weiland’s resignation had not been previously reported in
the media.

The JPMorgan Chase & Co report was released on
Wednesday in conjunction with its fourth-quarter earnings. It
cited failures in risk management inside the CIO and by
JPMorgan’s senior management.

Jan 16, 2013

Risk manager from JPMorgan’s CIO is gone from bank

NEW YORK, Jan 16 (Reuters) – Peter Weiland, the most senior
risk officer in JPMorgan Chase’s Chief Investment Office before
the “London Whale” scandal broke last April, quietly resigned in
October, according to a report released by the bank on
Wednesday.

His resignation has not been previously reported in the
press.

Weiland, who was the head of market risk for the CIO until
mid-January 2012, was the most senior risk officer in the bank’s
moneymaking office when the derivatives trades that eventually
cost it $6.2 billion were being made.

Jan 11, 2013

JPMorgan faces action on laundering controls

NEW YORK (Reuters) – U.S. regulators are expected to order JPMorgan Chase & Co (JPM.N: Quote, Profile, Research) to correct lapses in how it polices suspect money flows, two people familiar with the situation said, in the latest move by officials to force banks to tighten their anti money-laundering systems.

The action against JPMorgan, which is expected as soon as Friday, would be in the form of a cease-and-desist order, which regulators use to force banks to improve compliance weaknesses, the sources said. JPMorgan will probably not have to pay a monetary penalty, one of the sources said.

Jan 11, 2013

Exclusive: JP Morgan faces U.S. order to improve compliance – sources

NEW YORK (Reuters) – A U.S. regulatory probe of JP Morgan Chase & Co is expected to result in an order that the bank correct lapses in how it polices suspect money flows, in an action expected as soon as Friday, people familiar with the situation said.

The action would be in the form of a cease-and-desist order, which regulators use to force banks to improve compliance weaknesses, the sources said.

Jan 11, 2013

JP Morgan faces U.S. order to improve compliance-sources

NEW YORK, Jan 11 (Reuters) – A U.S. regulatory probe of JP
Morgan Chase & Co is expected to result in an order that
the bank correct lapses in how it polices suspect money flows,
in an action expected as soon as Friday, people familiar with
the situation said.

The action would be in the form of a cease-and-desist order,
which regulators use to force banks to improve compliance
weaknesses, the sources said.

Jan 9, 2013

Former SAC analyst who cooperated with probe gets probation

NEW YORK (Reuters) – A former hedge fund consultant who cooperated with the government’s sprawling insider trading probe was sentenced to two years probation on Wednesday by a federal judge.

U.S. District Judge Jed Rakoff sentenced Wesley Wang in an afternoon proceeding during which the judge said, “the extent of Mr. Wang’s cooperation goes beyond that of most cooperators.”

Jan 4, 2013

New rule could turn US hedge funds into informers

NEW YORK, Jan 4 (Reuters) – U.S. financial regulators are
pushing to turn hedge funds into informers on the white collar
crime beat.

The Financial Crimes Enforcement Network (FinCEN) is working
on a rule that would require U.S. hedge funds to file formal
reports notifying U.S. authorities of any suspicious trading by
employees or outside parties, the regulatory agency said.

Jan 4, 2013

New rule could turn U.S. hedge funds into informers on fraud

NEW YORK (Reuters) – U.S. financial regulators are pushing to turn hedge funds into informers on the white collar crime beat.

The Financial Crimes Enforcement Network (FinCEN) is working on a rule that would require U.S. hedge funds to file formal reports notifying U.S. authorities of any suspicious trading by employees or outside parties, the regulatory agency said.

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