Financial Regulatory Forum

Obama, New York law chief Cuomo target Wall Street bonuses

By Caren Bohan and Jonathan Stempel

WASHINGTON/NEW YORK, Jan 11 (Reuters) – The White House and and New York’s top prosecutor attacked excessive Wall Street bonuses, as the nation’s biggest banks prepare to hand out awards critics say were made possible by taxpayer bailouts.

A senior U.S. official also confirmed President Barack Obama is considering a fee on financial services firms as part of the fiscal 2011 budget he will unveil in February.

The proposal reflects tougher approach the White House is taking toward Wall Street as it faces rising political heat over its support for the $700 billion financial bailout begun in the Bush administration.

Amid reports of some bank payouts that could average hundreds of thousands of dollars each, White House spokesman Robert Gibbs said some Wall Street executives “continue not to get it” when it comes to big bonuses at bailed-out companies.

Meanwhile, New York Attorney General Andrew Cuomo asked the first eight banks to receive bailout money under the government’s much-maligned Troubled Asset Relief Program to turn over data on expected bonus payouts in 2009.

New York Attorney General Cuomo seeks 2009 bonus data from Wall Street

By Elinor Comlay and Jonathan Stempel

NEW YORK, Jan 11 (Reuters) – New York’s attorney general asked eight major U.S. banks to turn over data on planned bonuses for 2009, amid a growing public outcry over payouts in light of the industry’s role in the near-collapse of the financial system and recession.

Andrew Cuomo made the demand Monday to the banks that were first to receive federal bailout money in the fall of 2008: Bank of America Corp, Bank of New York Mellon Corp, Citigroup Inc, Goldman Sachs Group Inc, JPMorgan Chase & Co, Morgan Stanley, State Street Corp and Wells Fargo & Co.

These banks have all repaid infusions taken from the government’s much-maligned Troubled Asset Relief Program (TARP), though some of the U.S. investment in Citigroup has been converted into common stock.

US lawmakers urged to drop clearinghouse ownership cap

U.S. Representative Barney Frank (D-MA) holds a news conference on issues before the House Financial Services Committee on Capitol Hill in Washington, November 3, 2009.  REUTERS/Jonathan Ernst   By Jonathan Spicer
NEW YORK, Nov 20 (Reuters) – NYSE Euronext, LCH.Clearnet, BATS Global Markets and other firms partnered with banks have urged two U.S. legislators to drop a proposed “rigid” cap on dealer ownership of clearinghouses, according to a letter sent this week.

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EU unveils plan to clamp down on derivatives trading

A woman walks past a branch of French savings bank Caisse d'Epargne in Bouvigal, near Paris, October 17, 2008. Caisse d'Epargne merged with Banque Populaire to become the country's second-largest retail bank, said last year it had made a 600-million-euro ($808.1 million) trading loss on share derivatives. (File Photo) REUTERS/Benoit Tessier (FRANCE) By John O’Donnell
BRUSSELS, Oct 20 (Reuters) – The European Commission unveiled plans on Tuesday to drive more trading in derivatives onto exchanges and under the gaze of regulators, publishing a raft of proposed new rules.

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Worst is over for world economy-Morgan Stanley CEO

Morgan Stanley's John Mack joins other TARP recipient financial institution leaders as they testify before House Financial Services Committee on Capitol Hill in Washington, February 11, 2009.    REUTERS/Larry Downing (UNITED STATES)    LONDON, Sept 18 (Reuters) – The world economic downturn has passed its low point, with financial markets rebounding, Morgan Stanley <MS.N> CEO John Mack said on Friday. (more…)

Bonuses topped profits at some U.S. bailout banks – NY attorney general

AIG/CUOMO By Grant McCool

NEW YORK (Reuters) – Bonuses paid to executives at nine banks that received U.S. government bailout money in 2008 were greater than net income at some of the banks, the office of New York Attorney General Andrew Cuomo said on Thursday.

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