Financial Regulatory Forum

Bank of America, U.S. SEC say execs not liable on Merrill bonuses

Bank of America CEO Ken Lewis in this  February 11, 2009 file photo. Bank of America Corp shareholders voted to oust Lewis as chairman of the board on April 29, 2009 after months of mounting criticism of his stewardship of the largest U.S. bank. REUTERS/Larry Downing/Files By Jonathan Stempel
NEW YORK, Sept 9 (Reuters) – Bank of America Corp and the U.S. Securities and Exchange Commission made a third and perhaps final push to convince a federal judge to approve a settlement over the alleged misleading disclosure of Merrill Lynch & Co bonuses, saying executives should not be charged.

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U.S. internal review blasts SEC over Madoff

Defrauded investors and their supporters hold signs during a rally near the United States Courthouse in lower Manhattan, June 29, 2009, after the sentencing hearing for convicted swindler Bernard Madoff. 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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Antigua names new financial regulator after Stanford scandal

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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“Flash” trading controversy in U.S. raises issue of front-running

NYSE-Euronext Executive Vice President Larry Liebowitz (l) (File photo) 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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Nasdaq, BATS to stop “flash orders” as SEC plans ban

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…)

U.S. SEC ban on “flash trading” called imminent

U.S. Senator Charles Schumer (file photo)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…)

U.S. bank regulators dig in against Obama shake-up

U.S. Treasury Secretary Timothy Geithner (file photo) 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…)

Bank of America to pay $33 million to settle charges over Merrill bonuses

Bank of America CEO Ken Lewis 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…)

U.S. bill would restrict OTC derivatives holdings

USA/ 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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ANALYSIS-Enforcement key to curbing naked short selling

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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