Financial Regulatory Forum

BOSTON/WASHINGTON, Sept 2 (Reuters) – U.S. securities
regulators missed repeated chances to uncover Bernard Madoff’s Ponzi scheme, a sharply critical review by a federal watchdog said on Wednesday.

A summary of a report by the U.S. Securities and Exchange Commission’s Inspector General, released by the SEC, described five investigations the SEC launched into Madoff’s business because of complaints dating to 1992, and said “a thorough and competent investigation or examination was never performed.”

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MIAMI, Sept 1 (Reuters) – Antigua and Barbuda has appointed an experienced banker to head the tiny Caribbean nation’s financial regulatory body, replacing Leroy King, who faces U.S. charges of abetting accused swindler Allen Stanford.

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By Jonathan Spicer
NEW YORK, Aug 7 (Reuters) – With so-called “flash” orders exploding into public view, investors are wondering if the rapid-fire dissemination of their investing intentions is costing them money.

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By Jonathan Spicer
NEW YORK, Aug 6 (Reuters) – The Nasdaq Stock Market and BATS Exchange said in separate statements on Thursday they will “voluntarily” stop offering so-called flash orders, a controversial service that gives certain firms an advance look at market-bound trading orders. (more…)

WASHINGTON/NEW YORK, Aug 4 (Reuters) – A U.S. Securities and Exchange Commission ban on so-called flash orders is “imminent,” a senior lawmaker said on Tuesday — just before the agency itself said it was drawing up plans to ban the controversial services offered by some stock exchanges.  Democratic U.S. Senator Charles Schumer said SEC Chairman Mary Schapiro had personally assured him that the agency planned to ban the practice of “flash trading,” which gives advance knowledge of stock orders to certain traders. (more…)

WASHINGTON, Aug 4 (Reuters) – Disagreement within the Obama administration over reshaping U.S. financial regulation flared on Tuesday, with top bank regulators defending their turf against key parts of a broad bank supervision overhaul plan. (more…)

By Grant McCool
NEW YORK, Aug 3 (Reuters) – Bank of America Corp has agreed to pay $33 million to settle charges by the U.S. Securities and Exchange Commission that it made false and misleading statements to investors about bonuses when it took over Merrill Lynch & Co. (more…)

By Charles Abbott and Rachelle Younglai
WASHINGTON, July 30 (Reuters) – U.S. financial regulators would gain the power to restrict holdings of over-the-counter derivatives under legislation to be crafted in the coming months, the chairmen of two House of Representatives committees said on Thursday.

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By Leah Schnurr
NEW YORK, July 29 (Reuters) – Efforts by U.S. securities regulators to clamp down on an abusive type of short selling could help prevent manipulation in the market, but the rules amount to nothing without better enforcement.

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WASHINGTON, July 29 (Reuters) – Over-the-counter derivatives should go through central clearing and trade on regulated exchanges as much as possible, according to a paper prepared for release by the chairmen of the U.S. House of Representatives Financial Services and Agriculture committees. The paper, obtained by Reuters, is to be unveiled Thursday and is intended as a guide for legislation to be written after Congress returns from its August recess.

Major points in the paper are:
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