Financial Regulatory Forum

COLUMN: Roots of the next financial crisis: the last one’s veterans give views

April 19, 2016

By Lawrence Hsieh, Practical Law for Regulatory Intelligence

(Thomson Reuters Regulatory Intelligence) – There is a general consensus that the next financial crisis will follow the familiar arc of bubble, falling asset values, a run, credit/liquidity crunch, finger-pointing, new regulation, financial innovation, and unintended consequences for both regulation and innovation. There is less consensus about the where, when, how, and why.

COMMENTARY: Populist politics and bank reform: poor aim at an easy target – McCleskey

January 25, 2016

By Scott McCleskey for Thomson Reuters,

NEW YORK – Elections, like other forms of reality TV, provide moments of great entertainment but are often short of actual reality. It seems both parties this year need to have (at least) one candidate who captures airtime and ink with populist ideas unmoored from the practical world of getting things done. Democrats, not to be out-Trumped by Republicans, feature Bernie Sanders and his platform for Wall Street reform.

Reversal of Dodd-Frank swaps rule ignores lessons from financial crisis, ‘London whale’

December 18, 2014

The decision by U.S. Congress last week reverse the so-called swaps ”pushout” rule for certain derivatives contacts will put a greater responsibility on regulators to demonstrate they have effective oversight over bank activities of the sort that played a role in the 2008 financial crisis and ‘London whale’ trading debacle.

Largest U.S. banks see themselves in “regulatory spiral” with no clear end

December 4, 2013

By Henry Engler, Compliance Complete

NEW YORK, Dec. 4 (Thomson Reuters Accelus) – Although five years have passed since the height of the financial crisis, top lawyers at some of the largest U.S. banks see themselves pitted in an escalating, and at times adversarial, battle with regulators, the end of which remains unknown.

Weak U.S. legal oversight puts burden on compliance pros to protect their firms, author says

September 4, 2012

By Stuart Gittleman

NEW YORK, Sept. 4 (Thomson Reuters Accelus) – An inadequate government and industry response to the financial crisis will require compliance professionals to do more to protect their firms, customers and colleagues, Jeff Connaughton, who said he saw firsthand how reform withered in Congress, has told Compliance Complete.

Beyond the numbers: do banks manage risk?

June 14, 2012

By Rachel Wolcott

LONDON, June 14 (Thomson Reuters Accelus) – It may seem like a subtle difference, but most of what banks call ‘risk management’ is often more akin to ‘risk measurement’. It is a myth that banks are in possession of fancy gadgetry that allows them to measure risk on a minute-by-minute basis from a specialised risk-control tower and react to it effectively, thus averting catastrophe. Instead, the financial crisis and trading losses, such as JPMorgan’s $2 billion blow-up in May, have shown that by the time banks measure and understand their risks, it is too late. Risk management is not about controlling risk, but about offsetting its impact after the fact.

U.S. Justice Department unit to ramp up hiring as mortgage probes advance

March 6, 2012

By Emmanuel Olaoye

NEW YORK, March 6 (Thomson Reuters Accelus) – The U.S. Justice Department plans to step up its hiring of staff to investigate abuses in the packaging of residential mortgage backed securities and to work with regulators to uncover serious fraud, a senior department official told Thomson Reuters in the wake of criticisms that Obama administration efforts were insufficient.

Banker-author warns overseers to keep ‘extreme money’ in check

September 19, 2011

By Stuart Gittleman and Emmanuel Olaoye

NEW YORK, Sept. 19 (Thomson Reuters Accelus) – The “extreme money” and “voodoo banking” that are dominating the global financial system are too smart, too fast, too greedy, too self-absorbed and far too dangerous for traditional legislation and regulation, a veteran banker told Thomson Reuters.

Financial regulation scorecard

June 16, 2010

A House-Senate conference committee must find a middle ground between financial regulation bills passed by the two chambers. The committee’s final report could differ from earlier versions.

ANALYSIS-Markets fret, but chance of big bank crash slim

May 28, 2010

By Steve Slater and Alex Chambers

LONDON, May 28 (Reuters) – This week’s market jitters that banks were heading back to the darkest days of 2008 look overdone because lenders have vastly improved their assets and central banks stand ready with abundant funding.