By Svea Herbst-Bayliss
BOSTON, Feb 22 (Reuters) – State Street Corp <STT.N> reported on Monday that federal securities regulators and federal prosecutors had asked it to supply information about several of its funds. (more…)
Financial Regulatory Forum
By Huw Jones
LONDON, Feb 16 (Reuters) – European Union president Spain tightened proposed rules to regulate hedge funds and private equity groups, prompting accusations of protectionism from within the industry but potentially speeding up moves towards a deal. (more…)
MILAN, Feb 5 (Reuters) – British Finance Minister Alistair Darling reiterated that breaking up banks and going it alone was not the way to fight the crisis, preferring global coordination, he told Italian daily Il Sole 24 Ore in an interview on Friday. (more…)
By Kevin Drawbaugh
WASHINGTON, Jan 26 (Reuters) – Bank profits are set to come under serious pressure at the end of 2012 from higher global capital and liquidity standards, but just how bad it gets depends greatly on the future of the “shadow banking system”.
U.S. banking sector analysts are increasingly focused on the interplay between the setting of global capital standards and parallel efforts to bring non-bank financial institutions to heel and moderate their resurgence in credit markets.
The ability of regulators to bring “shadow banks” — investment firms, hedge funds, insurers, special investment vehicles — under a new oversight regime will help determine the pricing power banks have to raise rates on future loans.
By Keith Weir and Crispian Balmer
LONDON/PARIS, Jan 22 (Reuters) – Major European economies offered support on Friday for U.S. President Barack Obama’s plan to limit banks’ size and trading activities but indicated they had no plans to follow suit.
Obama’s dramatic proposals could rewrite the world financial order but experts said they were light on detail and could cloud the global approach fostered by the Group of 20 nations.
The European Union will not imitate Obama’s plan, because it aims to reduce risk in the sector through other means, an EU source said on Friday.
NEW YORK, Jan 21 (Reuters) – U.S. President Barack Obama is looking at limiting risk-taking at banks.
But his proposals on Thursday were tantalizingly vague. He said he wanted to limit the amount of borrowing that banks can do relative to their peers and limit their trading activities to buying and selling securities to customers.
But it is not clear whether relative borrowing limits will be low enough to force banks to reduce their debt. And the line between buying and selling securities on behalf of customers, and doing so on behalf of the bank, can be blurry.
By Jeff Mason and Kevin Drawbaugh
WASHINGTON, Jan 21 (Reuters) – U.S. President Barack Obama threatened to fight Wall Street banks on Thursday with new proposals to limit financial risk taking, sending stocks and the dollar tumbling.
Obama, a Democrat who is struggling to advance his agenda after a key election loss this week, laid out rules to restrict some banks’ most lucrative operations, which he blamed for helping to cause the financial crisis.
“If these folks want a fight, it’s a fight I’m ready to have,” Obama told reporters at the White House, flanked by his top economic advisers and lawmakers.
By Shurna Robbins
GEORGE TOWN, Cayman Islands, Dec 28 (Reuters) – The Cayman Islands are promising immigration incentives to keep foreign firms from quitting the Caribbean hedge fund hub, but locals want a bigger share of jobs in the lucrative financial sector.
The British overseas territory, a beach-lined island group south of Cuba that is legal home to most of the world’s hedge funds, has seen a drop during the global credit crisis in the number of companies located there, industry experts say.
Caymans Prime Minister McKeeva Bush and other local policy makers want to prevent any exodus of companies in the strategic financial industry, that accounts for more than half of the national economy, by offering more attractive, flexible immigration regulations in the islands.
By Jonathan Stempel and Rachelle Younglai
NEW YORK, Nov 6 (Reuters) – A top U.S. securities regulator said some funds may now view insider trading as a central tenet of their business models, rather than as a one-time opportunity for big rewards as sometimes happened in the 1980s.
BOSTON, Nov 6 (Reuters) – The Securities and Exchange Commission has hired former hedge fund executive Richard Bookstaber and two other senior officials to work in a newly created unit designed to identify risks in financial markets.