Financial Regulatory Forum

Federal Reserve issues technical fix to market-risk capital rule to conform with Basel III

By Guest Contributor
December 12, 2013

By Bora Yagiz, Compliance Complete

NEW YORK, Dec. 12 (Thomson Reuters Accelus) - The Federal Reserve Board issued a final rule that makes technical changes to the Board’s market-risk capital rule to align it with the Basel III revised capital framework adopted by the Board earlier this year. (more…)

The future of the U.S. resolution regime: toward “a tale of two models”?

By Guest Contributor
November 25, 2013

By Bora Yagiz, Compliance Complete

NEW YORK, Nov. 25 (Thomson Reuters Accelus) - The U.S. Federal Reserve Board and the Federal Deposit Insurance Corporation (FDIC) may be far from putting the final touches on titles I and II of the Dodd-Frank Act — the preparation of resolution plans within the framework of enhanced prudential standards, and the authority of FDIC to become the receiver of a failed non-bank financial or holding company and unwind it respectively. But comments by regulators and a conference in Washington last month held by the Federal Reserve Board and Federal Reserve Bank of Richmond on the topic reveal that some consensus is emerging on the structure and implementation of the resolution regime as well as its future course. (more…)

Quasi-partnership model may help big banks mitigate risk

By Guest Contributor
November 21, 2013

By Henry Engler, Compliance Complete

NEW YORK, NOV. 21 (Thomson Reuters Accelus) - The largest institutions on Wall Street could go a long way towards reducing risky behavior if they changed the way top levels of management are incentivized and compensated, and incorporated elements of a partnership model, says a former Goldman Sachs banker.

IA brief: State laws may require firms to re-think social media policies

By Guest Contributor
October 3, 2012

By Jason Wallace

NEW YORK, Oct. 3 (Thomson Reuters Accelus) – Federal and state privacy legislation aiming to protect against employer access to private social media websites may put the investment industry in a bind — unable to fully supervise social-media and electronic communications used by their representatives.

Knight Capital crisis brings new push for rules on trading, technology, structure

By Guest Contributor
August 6, 2012

By Nick Paraskeva

NEW YORK, Aug. 6 (Thomson Reuters Accelus) - The near-collapse of equity market maker Knight Capital after sending erroneous trades to the New York Stock Exchange last week is the latest in a string of errors causing heavy losses and disrupting markets. While smaller in dollar terms than losses from JPMorgan’s ‘London whale’ or UBS’ rogue trader, it is causing regulators to review firms’ compliance and controls over operational risks, and rules for restructuring of equity markets.

U.S. brokerage regulator warns of ‘unpleasant surprises’ on ETNs

By Guest Contributor
July 11, 2012

By Stuart Gittleman

NEW YORK, July 11 (Thomson Reuters Accelus) – The Financial Industry Regulatory Authority, the U.S. brokerage regulator, warned investors Tuesday in an alert of the features and risks of exchange-traded notes.

Road shows, analysts and jumping the gun: the Facebook IPO

By Guest Contributor
May 25, 2012

By Helen Parry, additional reporting by Julie Dimauro

LONDON/NEW YORK, May 25 (Thomson Reuters Accelus) – Facebook’s chaotic initial public offering has sparked much speculation and legal action based on the idea that securities laws and regulations over disclosure may have been breached, which would leave Facebook and others involved in the offering process liable to potential regulatory enforcement or civil liability for losses caused to investors.

Investor group seeks JPMorgan governance changes

By Guest Contributor
May 18, 2012

By Emmanuel Olaoye

NEW YORK, May 18 (Thomson Reuters Accelus) – A labor-backed investor group critical of JPMorgan Chase & Co’s corporate governance said the bank has failed to address concerns over its risk oversight and it will try to rally other shareholders for changes after a $2 billion trading loss.

Rolling the Dice: Carlyle filing discloses private equity IPO risks

By Guest Contributor
September 22, 2011
NEW YORK, Sept. 22 (Business Law Currents) - As a turbulent IPO market continues to flail, The Carlyle Group, one of the world’s great private equity houses, is going public. With $153 billion in assets under management (AUM), the guys at Carlyle are no dummies. So when so many companies are pulling back, why go public now? A look at Carlyle’s risk disclosures may yield some clues. The timing of the offering, while superficially curious, may at its core be linked to uncertainty over the partnership’s ability to maneuver in ever-shifting tax and regulatory regimes.

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Fed’s Kohn warns on interest rate risk

By Reuters Staff
January 29, 2010

By Karey Wutkowski

ARLINGTON, Va., Jan 29 (Reuters) – A senior U.S. Federal Reserve official warned on Friday that the uncertain path of interest rates poses risks for banks inattentive to the match of durations among their assets and liabilities.