Financial Regulatory Forum

COLUMN: “Swindle & Fraud” – America’s great tradition, from Lapham’s Quarterly

June 16, 2015

It is easy to fall into the belief that we are living in special times; that greed, avarice, fraud, and swindle are at new heights; that bankers are worse than they’ve ever been; that public trust in them is at historic lows. Nearly every day we learn of yet another major fine imposed on a bank for some wrongdoing, all this while the leaders of finance lament the burdensome rules they must now work under.
Pity them, and pity us, but life has always been that way, or at least that is the lesson drawn in reading the latest edition of Lapham’s Quarterly “Swindle & Fraud.” We are reminded that humans have a long history of behaving badly, and efforts to change that reality have usually run aground. Deception, lies, fraud and confidence tricksters are part of our fabric, whether in business or finance, on a New York street corner, Barnum’s circus, or ancient Greece. (more…)

INTERVIEW: E*Trade bank growth limited by U.S. regulatory asset threshold – CRO Mike Pizzi

April 21, 2015

The Dodd-Frank $50 billion asset threshold used to categorize systemically important banks has been a strategic business factor for E*Trade, the online broker, and unless there are compelling factors to breach the mark, the firm will continue to limit expansion of its balance sheet, chief risk officer, Mike Pizzi, said in an interview this week. (more…)

Basel committee tightens disclosure requirements for banks

February 6, 2015

In an effort to streamline banks’ regulatory data through increased transparency, and make them more comparable and consistent across the board, the Basel Committee on Banking Supervision has publishedrevised standards on disclosures.

Bankers say “derisking” underway amid sanctions crackdown; that’s the point, U.S. regulator says

October 3, 2014

A process of “derisking” is underway by financial firms exiting sectors that represent compliance landmines, bankers said on Tuesday, but a top U.S. sanctions enforcer said that is sometimes just the right move.

U.S. regulators ease credit risk rules on guarantees for banks using advanced approach

By Guest Contributor
August 15, 2014

By Bora Yagiz, Compliance Complete

NEW YORK, Aug. 15, 2014 (Thomson Reuters Accelus) - Three major U.S. regulatory agencies have eased requirements under the advanced approach risk-based capital rules by removing a key requirement concerning guarantees provided by counterparties eligible for recognition as credit risk mitigants.

Canadian banking outlook downgraded over ‘bail-in’ move, adding to recent financial stability concerns

By Guest Contributor
July 17, 2014

By Daniel Seleanu, Compliance Complete

TORONTO, July 17, 2014 (Thomson Reuters Accelus) -  In yet another worrying sign for Canada’s financial sector, Moody’s Investors Service has lowered its outlook for the Canadian banking system from “stable” to “negative” over uncertainty about government willingness to bail out banks during a crisis. It follows a pair of recent warnings issued by the Bank of Canada (BOC) and the Bank for International Settlements (BIS), both of which highlighted the growing risk of stress posed by runaway consumer debt and property prices.

Forget HFT; “High Intelligence Trading” is the new frontier for technology, markets, regulation

By Guest Contributor
April 10, 2014

By Henry Engler, Compliance Complete

NEW YORK, Apr. 10, 2014 (Thomson Reuters Accelus) - While fast is good, smart is better, and with untold resources of computing power and memory banks in the clouds, the new frontier in electronic trading combines sophisticated intelligent software with rapid-fire processing, enabling traders to stay one step ahead of the regulators.

Special report: UK regulators face mounting concerns over their handling of multi-million pound fund collapse

By Guest Contributor
April 4, 2014

By Alex Davidson, Compliance Complete

LONDON, Apr. 4, 2014 (Thomson Reuters Accelus) – Regulators face searching questions about whether they acted effectively in the multi-million pound collapse in 2012 of an unregulated collective investment scheme (UCIS). The then Financial Services Authority’s (FSA) decisions concerning the Connaught Income Fund, Series 1, a UK-domiciled fund based in London, will come under fresh scrutiny at a debate in Westminster Hall, between members of parliament and HM Treasury this month, subject to scheduling. The Financial Conduct Authority (FCA) has said that the FSA, its predecessor body, acquitted itself well in dealing with the situation. Detractors, including investors, MPs and independent financial advisers (IFAs), have said the regulator failed to act appropriately on warnings about the misappropriation of multiple millions of pounds from the fund.
Some have found fault with the regulator, fund operators and IFAs who sold the Connaught fund, but it remains to be seen who, if anyone, will be held broadly accountable. Critics of the regulator have said it failed to investigate effectively evidence of financial misappropriation and insolvency, at Tiuta Plc (Tiuta), a regulated mortgage lender, to which the fund was lending money. The evidence was provided by whistleblower George Patellis, chief executive of Tiuta, which, like its unregulated subsidiary,Tiuta International (TIL), was a specialist partner to the Connaught fund. (more…)

“Big data” tools will improve regulatory oversight, FINRA’s di Florio says

By Guest Contributor
February 25, 2014

By Stuart Gittleman, Compliance Complete

NEW YORK, Feb. 25 (Thomson Reuters Accelus) - The Financial Industry Regulatory Authority is developing a suite of “big data” information sources and analytics to improve regulatory oversight of securities firms, according to Carlo di Florio, FINRA’s chief risk officer and head of strategy.

Big banks fall short on data requirements, but regulators may share in the blame

By Guest Contributor
February 11, 2014

By Bora Yagiz, Compliance Complete

NEW YORK, FEB. 11 (Thomson Reuters Accelus) – An international study for a bank regulators’ group has found deficiencies in the way banks measured and reported counterparty exposures. But the regulators themselves may share responsibility for the shortcomings, as they have provided little specific guidance for the banks.