By Kevin Drawbaugh
WASHINGTON, July 27 (Reuters) – The shape of the U.S. government’s proposed crackdown on the $450-trillion over-the-counter derivatives market became clearer on Monday, with Congress poised to move forward this week on other aspects of a sweeping overhaul of U.S. financial regulation.
Financial Regulatory Forum
By Kevin Drawbaugh
KUWAIT, July 26 (Reuters) – The apparent suicide of a Kuwaiti broker, sued for fraud by U.S. regulators in a case linked to Kuwait’s ruling family and its top investment firm, shines an unwelcome light on the weak regulatory environment in the Gulf Arab state. Kuwaiti Hazem Khalid Al-Braikan, 37, who had been at the centre of a financial scandal that erupted last week, was found dead on Sunday, days after being sued by the U.S. Securities and Exchange Commission over suspicious stock trades.
WASHINGTON, July 24 (Reuters) – U.S. Treasury Secretary Timothy Geithner said on Friday he was willing to work with lawmakers on shaping an overhaul of financial regulations but insisted major changes are necessary. The financial crisis of the past two years show the financial system “failed in its most basic responsibility” to supply credit and protect consumers and that cannot happen again, he said in prepared testimony for delivery to the U.S. House of Representatives Financial Services Committee. (more…)
WASHINGTON, July 22 (Reuters) – The Obama administration on Wednesday released proposed legislative language for its proposal to create an Office of National Insurance as a part of the U.S. Treasury Department.
The language says the office, part of the administration’s broad plan to reshape U.S. financial regulation, would “monitor all aspects of the insurance industry.” (more…)
WASHINGTON, July 21 (Reuters) – A U.S. appeals court ordered the Securities and Exchange Commission to reconsider a rule it adopted in the final weeks of former President George W. Bush’s administration to expand scrutiny over annuities linked to equity indexes. (more…)
By Julien Troyer
STRASBOURG, France, July 15 (Reuters) – European Union president Sweden promised on Wednesday to secure quick agreement on moves to tighten financial regulations to combat the economic crisis and on steps to fight climate change. (more…)
By Huw Jones
LONDON, July 14 (Reuters) – Britain was “gaining traction” in persuading its EU partners to rein in a draft law regulating hedge funds but the industry should also get its customers out on the campaign trail, a government minister said on Tuesday. (more…)
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, 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…)
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.