Financial Regulatory Forum

Fed’s capital proposal not as tough as feared, may give U.S. banks advantage

By Guest Contributor
December 22, 2011

By Rachel Wolcott

NEW YORK/LONDON, Dec. 22 (Thomson Reuters Accelus) - Considering the cost of the financial crisis to the American taxpayer — anywhere between $700 billion and $12.8 trillion depending on who you talk to — the proposed capital rules the Federal Reserve published yesterday seem pretty lenient, compare to those mooted by some European countries.

MF Global trustee reviewing firm’s practice of repledging collateral

By Guest Contributor
December 21, 2011

By Emmanuel Olaoye and Christopher Elias

NEW YORK/LONDON, Dec. 21 (Thomson Reuters Accelus) - The bankruptcy trustee for collapsed U.S. brokerage firm MF Global Inc. is looking into how the firm re-pledged customer collateral as part of its search for $1.2 billion of missing customer funds.

U.S. financial services can expect more Dodd-Frank in 2012, not less

By Guest Contributor
December 16, 2011

By Rachel Wolcott

NEW YORK, Dec.16 (Thomson Reuters Accelus) – When congressman Barney Frank announced he would not seek another term, enemies were quick to predict the demise of the wide-ranging financial reform act that the Massachusetts Democrat penned with former Connecticut Senator Chris Dodd. These pronouncements are not just premature, but according to regulatory experts, probably wrong. Unless there is a real seismic political shift to the right after the 2012 elections, they say, the Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 will survive, perhaps with a little tinkering, and firms had better be prepared to deal with it.

Regulatory round-up — U.S. rules to know in 2012

By Guest Contributor
December 16, 2011

By Nick Paraskeva

NEW YORK, Dec. 16 (Thomson Reuters Accelus) – Several recently adopted rules in the U.S. are going into effect for specific types of firms in 2012. These rules include ones released by the Securities and Exchange Commission, Commodity Futures Trading Commission and Federal Reserve, issued to implement the Dodd-Frank Act and as a response to market developments.

FATCA tax law has bigger impact on foreign than U.S. firms

By Guest Contributor
December 9, 2011

US dollar note and other currenciesBy Nick Paraskeva

NEW YORK, (Thomson Reuters Accelus) - The soon-to-be-implemented U.S. Foreign Account Tax Compliance Act, or FATCA, will have a bigger impact on foreign financial institutions than on U.S. ones, financial industry participants were told at a panel discussion on the law, which is placing new duties on compliance officers.

Cost-benefit lawsuits snarl Dodd-Frank implementation

By Guest Contributor
December 9, 2011

By Nick Paraskeva

NEW YORK/WASHINGTON, (Thomson Reuters Accelus) – A financial industry lawsuit seeking to block new U.S. rules on commodity position limits on the grounds that they lack an adequate cost-benefit analysis could cause regulators to slow their implementation of the Dodd-Frank financial regulatory overhaul and be an indicator of more such challenges. Meanwhile, the Obama administration is saying it will resist efforts to block the law.  (more…)

U.S. ‘microcap’ charges highlight debate over small-firm capital raising

By Guest Contributor
December 5, 2011

By Stuart Gittleman

NEW YORK, Dec. 6 (Thomson Reuters Accelus) – Federal charges filed last week in a suspected kickback scheme to sell thinly traded stocks highlight concerns over investor safety as Congress making it easier for small business to raise capital. Boston federal prosecutors filed fraud and conspiracy charges last Thursday against 13 people: corporate officers, a lawyer and stock promoter. They were accused of a kickback scheme in which payments hidden by phony consulting contracts were made to an undercover FBI agent, who posed as a hedge-fund representative, in exchange for having the fund buy stock in certain small companies. (more…)

On the other hand: When Woodstock meets Wall Street

By Guest Contributor
November 29, 2011

By Scott McCleskey

Nov. 29 (Thomson Reuters Accelus) - If you didn’t know any different, you’d think the Occupy Wall Street movement was the kind of military operation so often criticized by people of a certain political temperament. It started off with a clear mission (financial reform), then suffered from mission creep (economic justice) and it never had an exit strategy. I think there was a surge in there somewhere as well but it’s hard to tell when they all live in tents.

Taking on trading desk risk: the lessons of UBS and MF Global

By Guest Contributor
November 22, 2011

Traders work at their desks in front of the DAX indexBy Rachel Wolcott

LONDON/NEW YORK, Nov. 22 (Thomson Reuters Accelus) – When the young UBS trader Kweku Adoboli turned himself in after allegedly having lost $2.3 billion on the Swiss bank’s delta one desk, many asked how such a huge loss could have happened without anyone knowing. The short answer was, in part, that Adoboli’s back-office experience gave him inside knowledge which permitted him to game UBS’ control systems and hide the fraud. The same excuse was trotted out to explain Jérôme Kerviel’s $6.8 billion loss at Société Générale in 2008, but it must surely take more than a stint in the bank office to fool banks’ risk controls systems.

Off Balance Sheet Repo Risks Come Back to Bite

By Guest Contributor
November 16, 2011

By Christopher Elias

NEW YORK, Nov.16 (Business Law Currents) - Off balance sheet items and undisclosed liabilities are coming back to bite companies, as repo-to-maturity disclosures prove to be a jarring reminder of pre-crisis risk proclivity.