The United States effort to begin reining in the risks from shadow banking was recognized by the International Monetary Fund in a recent report as being ahead of the curve, and parts of it could serve as a model for other countries.
Financial Regulatory Forum
A process of “derisking” is underway by financial firms exiting sectors that represent compliance landmines, bankers said on Tuesday, but a top U.S. sanctions enforcer said that is sometimes just the right move.
By Daniel Seleanu, Compliance Complete
TORONTO, July 1, 2014 (Thomson Reuters Accelus) – Canada’s overheated housing market represents a significant risk to the stability of its financial system, the country’s central bank has warned.
By Abel Picardi, Compliance Complete
NEW YORK, Mar. 21 (Thomson Reuters Accelus) – Proposed risk standards for banks regulated by the Office of the Comptroller of the Currency (OCC) will expose top executives and directors of federally chartered insured institutions to greater accountability for any legal, risk or compliance shortcomings.
The OCC proposed the standards in January as way to broaden and enforce the application of its “heightened expectations” for bank stability. The expectations were issued in 2010, in response to the financial crisis. The proposed guidelines’ focus on top bank governance directly aims to limit ”accountability risk,” or the risk that a leadership not held to the consequences of its decisions can endanger an institution. (more…)
Small banks await regulatory fix on Trust Preferred Securities portion of the Volcker rule for capital decisions
By Bora Yagiz, Compliance Complete
NEW YORK, Jan. 24 (Thomson Reuters Accelus) – Banks that have relied over the years on a special type of assets to fulfill their capital requirements may soon have to restructure their investment portfolios to bring it in line with the Volcker rule limiting risky trading by banks. At stake is the treatment of the Trust Preferred Securities (TRuPS), whose inclusion as “investments in entities referred to as covered funds” such as collateralized loan obligations and collateralized debt obligations, would oblige banks to divest them in compliance with the Volcker rule.
By Henry Engler, Compliance Complete
NEW YORK, Dec. 18 (Thomson Reuters Accelus) – The Federal Deposit Insurance Corporation, under mounting pressure from the industry for greater clarity, announced on Tuesday additional details on its “Single Point of Entry” resolution plans for failed banks.
The basic concept is to close the holding company of a failed firm, and transfer its healthy subsidiaries into a new bridge institution that could be managed while the resolution of the defunct company proceeds. Shareholders would be wiped out under the plan, while unsecured creditors could seek equity claims as a means to recapitalize the new institution. Should the subsidiaries require liquidity to operate, they would borrow from the bridge, which in turn may borrow from an “orderly liquidation fund” funded by the U.S. Treasury. (more…)
By Bora Yagiz, Compliance Complete
NEW YORK, Dec. 12 (Thomson Reuters Accelus) – The Federal Reserve Board issued a final rule that makes technical changes to the Board’s market-risk capital rule to align it with the Basel III revised capital framework adopted by the Board earlier this year. (more…)
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.
By Emmanuel Olaoye
NEW YORK, July 20 (Thomson Reuters Accelus) – Any downgrade in the U.S. government’s credit rating stemming from a failure to raise the debt limit would make it harder for American banks to raise capital at a time that they are facing higher capital requirements, banking experts and industry representatives warned. (more…)
By Anat Admati, guest columnist. The views expressed are her own
PALO ALTO, California, June 15 (Thomson Reuters Accelus) –
Dear JPMorgan Chase Directors
I own some JPMorgan Chase (JPM) shares through mutual funds in my retirement account. I have read Mr. Dimon’s recent letter to shareholders and some of his public comments. I write to urge you to reconsider JPM’s actions related to capital regulation. For the overall economy, as well as for JPM, these actions are misguided. (more…)