Financial Regulatory Forum

U.S. SEC hires hedge fund veteran Bookstaber for new market risk unit

November 6, 2009

 Richard Bookstaber speaks at the Reuters Global Hedge Fund and Private Equity Summit in New York in this photo taken on April 11, 2007. In his book "A Demon of Our Own Design," published in April 2007, Bookstaber made the case that financial innovation actually adds to risk. "Financial risk is also higher because the markets increasingly assume a mathematically precise rationality, as opposed to the way we actually do, or indeed really should behave," he wrote.   FOR FEATURE STORY FINANCIAL/QUANTS   BOSTON, Nov 6 (Reuters) – The Securities and Exchange Commission has hired former hedge fund executive Richard Bookstaber and two other senior officials to work in a newly created unit designed to identify risks in financial markets.

New arrests in Galleon insider-trading case

November 5, 2009

NEW YORK, Nov 5 (Reuters) – Nine more people have been arrested in the Galleon Group insider-trading scandal, bringing to 15 the number charged in the biggest hedge fund-related case in history.

US Rep. Frank seeks changes in derivatives bill

November 4, 2009

U.S. Representative Barney Frank (D-MA), Chairman of the House Financial Services Committee, listens to a reporter's question during the Reuters Global Financial Regulation Summit in Washington, April 28, 2009.     WASHINGTON, Nov 4 (Reuters) – The chairman of the U.S. House Financial Services Committee is seeking changes to draft legislation for the $450 trillion privately-traded derivatives markets, with the intent of making it harder for banks to avoid trading the contracts on exchanges.

SEC eyes efficiency, small stocks in fast-trading review

November 4, 2009

NEW YORK, Nov 4 (Reuters) – The U.S. Securities and Exchange Commission is considering whether the growth of high-frequency trading has made markets more or less efficient for long-term investors, including those trading small- and mid-cap stocks, an SEC official said on Wednesday.

US’s Frank wants SEC/CFTC to decide on swaps clearing

November 4, 2009

By Kim Dixon and Karen Brettell
WASHINGTON/NEW YORK, Nov 3 (Reuters) – U.S. regulators should be given authority to determine whether a privately traded derivative contract should be cleared through a central clearinghouse, the chairman of the House Financial Services Committee said on Tuesday.

Shareholders need real voice: U.S. SEC chief

November 4, 2009

U.S. Securities and Exchange Commission Chairman Mary Schapiro bites her lip as she listens to questions during her testimony before the Senate Banking Committee on Capitol Hill in Washington, June 22, 2009.    REUTERS/Jim Young    (UNITED STATES POLITICS BUSINESS IMAGES OF THE DAY)   NEW YORK, Nov 4 (Reuters) – The top U.S. securities regulator on Wednesday called on Corporate America to upgrade its proxy voting practices to ensure shareholders a greater voice in governing the companies they own.

U.S. financial reform faces Republican challenges

November 2, 2009

By Kevin Drawbaugh and Rachelle Younglai

WASHINGTON, Nov 2 (Reuters) – Key U.S. senators are still deeply divided on basic financial regulation reforms, making it unlikely a bill expected soon from Senate Democrats could become law this year, analysts said on Monday.

ANALYSIS-Accounting irregularities may be on the rise in U.S.

October 29, 2009

By Emily Chasan
NEW YORK, Oct 28 (Reuters) – Corporate balance sheets may be showing signs of the wear and tear from the prolonged U.S. recession as accounting irregularities are starting to surface at growing numbers at U.S. companies.”When things get difficult companies tend to stretch even further and utilize whatever games that they can get away with and sometimes they don’t get away with them,” David Tice, chief portfolio strategist for bear markets at Federated Investors, said in an interview with Reuters television on Wednesday.

Credit rating agency bill backed by US House panel

October 29, 2009

By Kevin Drawbaugh
WASHINGTON, Oct 28 (Reuters) – Credit rating agencies, which have been widely blamed for failing to spot problems that helped trigger the global financial crisis, would be more tightly regulated under legislation approved on Wednesday by the U.S. House of Representatives Financial Services Committee.

US congressional panel backs new rules for hedge funds, short of White House aims

October 28, 2009

By Kevin Drawbaugh and Rachelle Younglai
WASHINGTON, Oct 27 (Reuters) – U.S. regulators would be able to peer into the secretive world of hedge funds and private equity funds under a bill passed by a key congressional committee on Tuesday.