Financial Regulatory Forum

ANALYSIS-U.S. banks prepare to battle over OTC derivatives

July 14, 2009

U.S. Representative Barney Frank By Steve Eder and Rachelle Younglai
NEW YORK/WASHINGTON, July 13 (Reuters) – The banking industry is gearing up for a battle over the lucrative derivatives market, but will have to fight hard to head off a crackdown by regulators.
Calls to regulate the $450 trillion private market — long seen as the Wild West of the financial services sector — have been building for months. Policymakers were caught off guard when a type of derivative — credit default swaps — nearly toppled insurer American International Group Inc and global financial markets. (more…)

Basel panel sets higher capital rules for bank trading books

July 13, 2009

BASEL, Switzerland, July 13 (Reuters) – The Basel Committee published the final version on Monday of its new rules that will force banks to tie up more capital to offset trading book risks from the end of 2010. (more…)

US’s Geithner seeks clampdown on derivatives dealers

July 10, 2009

U.S. Treasury Secretary Timothy Geithner By Rachelle Younglai
WASHINGTON, July 10 (Reuters) – U.S. Treasury Secretary Timothy Geithner on Friday proposed clamping down on dealers in freewheeling markets for little-understood derivatives that helped create a crisis in U.S. and world financial markets.  In testimony at a joint hearing by two congressional panels that will play a role in writing legislation on derivatives, Geithner set out proposals that would make big dealers like JPMorgan Chase and Goldman Sachs subject to much stronger supervision than was the case in the past.

Top examiner to leave U.S. securities regulator

July 8, 2009


The headquarters of the U.S. Securities and Exchange Commission   WASHINGTON, July 8 (Reuters) – The U.S. Securities and Exchange Commission’s top inspector and examiner, Lori Richards, plans to leave the agency Aug. 7, the SEC said on Wednesday. Richards, director of the compliance inspections and examinations unit since it was created in 1995, leaves after a year in which her division and the SEC enforcement unit were accused of failing to spot Bernard Madoff’s $65 billion investment fraud. (more…)

U.S. lawmakers question Obama plan for consumer watchdog

July 8, 2009

U.S. Representative John Dingell (D-MI)    By Diane Bartz
   WASHINGTON, July 8 (Reuters) – President Barack Obama’s plan to create a single agency, the Consumer Financial Protection Agency (CFPA), to protect consumers dealing with the financial services industry got a skeptical reception in a House hearing on Wednesday.   Democratic lawmakers questioned some elements of the proposal on the grounds that it took jurisdiction away from the Federal Trade Commission, which it oversees, while Republicans expressed concern about the expense of creating a new federal agency and the regulations it might impose. (more…)

Britain to unveil banking reform blueprint

July 7, 2009

    By Christina Fincher and Huw Jones
   LONDON, July 8 (Reuters) – Britain is to set out its blueprint for beefing up financial regulation later on Wednesday in a bid to prevent a re-run of the crisis that forced it to bail out banks with billions of pounds of taxpayers’ money. (more…)

U.S. regulator seeks tighter controls on commodity trading

July 7, 2009

Chairman of U.S. Commodity Futures Trading Commission Gary Gensler (R) and Securities and Exchange Commission Chairman Mary Schapiro.    By Russell Blinch
   WASHINGTON, July 7 (Reuters) – The top regulator of U.S. futures markets is considering a clampdown on excessive speculation in energy and commodity trading by restricting holdings of big players, part of a broader move by the Obama administration to stabilize the financial markets. (more…)

Pope Benedict seeks “global authority” for economy

July 7, 2009

Pope Benedict      By Philip Pulella

      VATICAN CITY, July 7 (Reuters) – Pope Benedict called on Tuesday for a “world political authority” to manage the global economy and for more government regulation of national economies to pull the world out of the current crisis and avoid a repeat.  The pope made his call for a re-think of the way the world economy was run in a new encyclical which touched on a number of social issues but whose main connecting thread was how the current crisis has affected both rich and poor nations. (more…)

UK, France seek ways to curb oil price volatility, end tax havens

July 6, 2009

  By Estelle Shirbon 
  EVIAN, France, July 6 (Reuters) – France and Britain called for action to curtail oil price volatility on Monday as part of a move towards tougher global governance to prevent a return to economic problems that existed before the financial crisis.   Speaking at a Franco-British summit ahead of a meeting of G8 leaders in Italy this week, British Prime Minister Gordon Brown also said that tax havens should accelerate their reforms towards greater transparency for the good of the world economy. (more…)

UK market regulator plans bigger fines, link to income

July 6, 2009

British Financial Services Authority Chairman Adair Turner

 By Myles Neligan  
 LONDON, July 6 (Reuters) –  Britain’s Financial Services Authority (FSA) plans to triple some of the fines it imposes on financial sector wrongdoers as part of a crackdown on offences such as mis-selling and insider dealing. 
 The bigger fines are designed to deter firms and individuals from breaking market rules by making the costs of doing so prohibitively high, the FSA said in a statement.