Financial Regulatory Forum

Major U.S. exchange chief urges SEC-CFTC merger

seccftc    By Kevin Drawbaugh
   WASHINGTON, July 16 (Reuters) – The two main regulators of U.S. financial markets should merge, the chief executive of America’s largest options exchange says in remarks to be delivered to a congressional panel on Friday.

Fed says it should keep consumer protection role

A man walks in front of the U.S. Federal Reserve building in Washington   By Tim Ahmann
   WASHINGTON, July 16 (Reuters) – The Federal Reserve on Thursday pushed back against a White House plan to give some of its consumer protection powers to a new agency, arguing there was a “compelling case” for the central bank to keep them. 

U.S. Congress gets Obama “say on pay” proposal

    WASHINGTON, July 16 (Reuters) – The U.S. Treasury on Thursday sent Congress a bill that would give corporate shareholders an annual non-binding vote on executive compensation and require more independence for boardroom compensation committees.

Big UK investors baulk at FSA bank oversight

   By Raji Menon
   LONDON, July 16 (Reuters) – Major UK institutional investors boadly welcomed David Walker’s report on improving corporate governance in banks, but baulked at the idea of the financial regulator monitoring fund managers’ compliance on engagment.

Aided banks may face asset sale under new EU rules

European Commissioner for Competition Neelie Kroes    By Foo Yun Chee and Huw Jones
   BRUSSELS/LONDON, July 16 (Reuters) – Crisis-hit banks seeking European Union regulatory approval for state aid may have to sell assets and curb their market and geographical expansion, according to a draft EU document on bank restructuring rules. 

INSTANT VIEW-Reaction to UK bank governance proposals

Sir David Walker    LONDON, July 16 (Reuters) – Following is recation to a UK government-sponsored review of the way the UK banking system is run and governed.
   David Walker, a former chairman of Morgan Stanley bank’s international unit, on Thursday published 39 recommendations for changes in the way banks are run, from pay policies to selecting board members, in a bid to apply lessons from the credit crunch.

US Justice Dept. confirms credit derivatives probe

   WASHINGTON, July 15 (Reuters) – The U.S. Justice Department confirmed on Wednesday that its Antitrust Division is investigating possible anti-competitive practices involving credit derivatives.
   “The Antitrust Division is investigating the possibility of anti-competitive practices in the credit derivatives clearing, trading and information services industries,” spokeswoman Laura Sweeney said in a statement.

Obama bill seeks to shine spotlight on hedge funds

   By David Lawder
   WASHINGTON, July 15 (Reuters) – The Obama administration on Wednesday sent Congress legislation that would pry open hedge funds to wider scrutiny, requiring those with more than $30 million under management to register with the government and greatly boost disclosure.

S.Korea eyes curbs on FX margin trading from Sept

KOREA    SEOUL, July 16 (Reuters) – South Korea will sharply lower the leverage investors can employ when trading currencies via margin trading to discourage speculative trading, the top financial regulatory agency said on Thursday.

BofA operating under secret regulatory sanction – WSJ

    July 16 (Reuters) – Bank of America Corp is operating under a secret U.S. regulatory sanction that requires it to overhaul its board and address perceived problems with risk and liquidity management, The Wall Street Journal reported, citing people familiar with the situation.