Financial Regulatory Forum

Obama administration seeks boost to U.S. SEC investor protection

SEC headquarters

WASHINGTON, July 10 (Reuters) – The Obama administration on Friday proposed legislation to strengthen the Securities and Exchange Commission’s investor protection authority, including the power to ban certain forms of compensation for brokers and investment advisers. (more…)

U.S. futures regulator to swiftly curb excessive speculation

Futures trader in Chicago By Christopher Doering
WASHINGTON, July 10 (Reuters) – The Commodity Futures Trading Commission will move aggressively to rein in excessive speculation in energy and commodity markets by focusing on expanding its existing authority and could have new regulations in place by late October. Bart Chilton, one of five commissioners at the CFTC, said he could not predict what the agency will do, but he would like to see the proposed rules issued in September, then implemented by late October or November after a period of public comment. (more…)

JPMorgan wants U.S. to auction its TARP warrants

   By Elinor Comlay and Jonathan Stempel
   NEW YORK, July 10 (Reuters) – JPMorgan Chase & Co, seeking to extricate itself from a federal bailout program, wants warrants held by the government to be sold at auction, after the Treasury Department demanded too high a price for the bank to buy them back. The bank revealed its decision as a Congressional Oversight Panel overseeing the $700 billion Troubled Asset Relief Program said it could could cost taxpayers billions of dollars if the government lets banks repurchase warrants too cheaply. (more…)

U.S. asks banks to expand foreclosure prevention

House for sale WASHINGTON, July 10 (Reuters) – The Obama administration is asking the largest mortgage finance companies to quicken the pace of modifying home loans and so help more troubled borrowers avoid foreclosure. The largest 25 mortgage servicers should appoint a special liaison officer to work directly with government officials who are overseeing the program meant to save as many as 4 million borrowers from foreclosure. (more…)

US’s Geithner seeks clampdown on derivatives dealers

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.


China stock regulator resumes IPO approval reviews

   SHANGHAI, July 10 (Reuters) – The China Securities Regulatory Commission (CSRC) said on Friday it would restart its reviews for approving initial public offerings (IPO) next week, having suspended them since last September.

US Senate panel wants details on use of TARP money

    WASHINGTON, July 9 (Reuters) – A U.S. Senate panel on Thursday approved a $46.4 billion bill to fund the Treasury Department and pressed the agency to obtain more details about how recipients of the government’s $700 billion financial bailout are using the funds.

US Treasury sold warrants below market value-panel

   By David Lawder
   WASHINGTON, July 10 (Reuters) – The U.S. Treasury Department allowed 11 smaller banks to repurchase stock warrants at only 66 percent of their market value, passing up about $10 million of taxpayer profits from government bailouts, a U.S. watchdog panel said on Friday.

Gruebel: UBS cannot comply with U.S. request-source

   By Ajay Kamalakaran
   BANGALORE, July 10 (Reuters) – UBS cannot comply with a U.S. request to disclose the identity of 52,000 U.S. secret account holders, the bank’s chief executive Oswald Gruebel said in an internal memorandum, according to a source familiar with the situation.

U.S. companies lobby Congress on derivatives-WSJ

    July 10 (Reuters) – At least 42 nonfinancial companies and trade associations are lobbying the U.S. Congress to push back on proposals that regulate the over-the-counter derivatives market, the Wall Street Journal said on Friday.