Financial Regulatory Forum

MF Global bankruptcy shows regulatory resolve

By Nick Paraskeva

Nov. 1 (Thomson Reuters Accelus) -┬áThe collapse of MF Global Holdings is the first major U.S. financial bankruptcy since new Dodd-Frank insolvency laws ended the doctrine of “too big to fail,” as well as being the first U.S. failure attributable to the Euro crisis. While the collapse is expected to be handled under pre-Dodd Frank bankruptcy laws and under the Securities Investor Protection Corp., it may signal that regulators are prepared to take earlier action when they see uncovered financial risks.

The default follows agreement last week by EU heads of state, which required banks to increase capital by 106 billion euros to restore confidence. This is based on a higher capital ratio of 9 percent of highest quality capital, after a buffer for the mark-down of sovereign debt value of periphery EU States to current market values. Banks and private sector creditors to Greece accepted 50 percent voluntary write-down, as part of the package. (more…)

ANALYSIS – Obama tackles Wall Street reform in next big push

By Caren Bohan

WASHINGTON, March 25 (Reuters) – Fresh from his victory on landmark healthcare legislation, U.S. President Barack Obama is ready to take on Wall Street.

In the same week Obama signed into law his sweeping healthcare plan, his administration began a publicity blitz to sell his proposal to reshape the financial regulatory system.

Obama held a strategy session on Wednesday with two Democrats, Senate Banking Committee Chairman Christopher Dodd and House of Representatives Financial Services Committee Chairman Barney Frank, who are leading the effort to pass the plan in Congress.

SCENARIOS-How U.S. financial regulation fight might play out

March 23 (Reuters) – The financial regulation debate has a long way to go in the U.S. Congress, with the action shifting to the full Senate and big headlines unlikely until April.

The Senate Banking Committee approved a sweeping Democratic bill by a party-line vote on Monday. That bill is now headed for the Senate floor, but not before lawmakers try again to hash out a bipartisan deal in closed-door negotiations.

With Congress adjourning on Friday for a two-week holiday break, the off-line financial reform talks probably will not produce results before lawmakers return next month.

BREAKINGVIEWS-U.S. financial reform process takes risky turn

– The author is a Reuters Breakingviews columnist. The opinions expressed are his own –

By James Pethokoukis

WASHINGTON, March 23 (Reuters Breakingviews) – The effort to reform the U.S. financial regulatory system was supposed to show the Senate working more or less as intended — bipartisan up to a point, and largely non-confrontational. But it’s starting to follow the healthcare bill’s more contentious path.

Hundreds of Republican and Democratic amendments to the legislation authored by Democrat Chris Dodd, the panel’s chairman, were supposed to be hashed out by the relatively expert Senate Banking Committee this week. Instead, Republicans yanked their proposed changes, and the bill was approved with just Democratic support. Now it will be hashed out on the Senate floor. Democrats will need to bring at least one Republican across the aisle to hit the 60 votes needed to be certain of passage.

Bipartisan US financial reform deal uncertain – Sen. Dodd

By Kevin Drawbaugh

WASHINGTON, March 5 (Reuters) – Senator Christopher Dodd, chief negotiator for the Democrats in U.S. Senate talks on financial regulation reform, said on Friday he was uncertain whether bipartisan support for a compromise bill could be achieved.

With one of the Obama administration’s top domestic policy priorities in the balance, Dodd sounded wary but hopeful following weeks of discussions that have snagged on a proposal to create a new financial consumer watchdog.

“While we do not have a bipartisan agreement yet at all, we’re getting there, we’re trying. I don’t know if it will happen or not,” Dodd said in remarks on the Senate floor.

ANALYSIS – Democrats bet politics favor US financial reforms

By Kevin Drawbaugh

WASHINGTON, Feb 18 (Reuters) – The next round of betting is near in a high-stakes game to tighten U.S. financial regulation and Democrats are wagering heavily on a hunch — that some Republicans cannot afford politically to block reform.

The view is strongly held at the White House, where officials remain confident, despite setbacks, that reforms will be approved by Congress this year, said congressional aides.

President Barack Obama and the Democrats need a boost as they head into November’s midterm congressional elections after disappointing outcomes on healthcare and climate change,

U.S. lawmaker unveils financial firm break-up plan

U.S. Rep. Paul Kanjorski, chairman of the House Financial Services Subcommittee on Capital Markets, speaks at the Reuters Financial Regulation Summit  in Washington, April 27, 2009. REUTERS/Mike Theiler WASHINGTON, Nov 18 (Reuters) – U.S. Representative Paul Kanjorski on Wednesday released a summary of a proposal to give regulators power to break up financial firms that pose a risk to economic stability.

(more…)

U.S. House Democrats sharpening ‘too big to fail’ plan

U.S. Representative Barney Frank (D-MA) holds a news conference on issues before the House Financial Services Committee on Capitol Hill in Washington, November 3, 2009.  REUTERS/Jonathan Ernst    (UNITED STATES POLITICS BUSINESS) By Kevin Drawbaugh
WASHINGTON, Nov 17 (Reuters) – A key U.S. congressional panel moved toward toughening a plan for dealing with “too big to fail” financial firms on Tuesday, while rejecting a Republican alternative backed by Wall Street.

(more…)

Banks sense danger, warn U.S. Congress on breakup power

By Kevin Drawbaugh
WASHINGTON, Nov 16 (Reuters) – Some of the world’s largest financial firms on Monday urged a top U.S. lawmaker not to pursue big bank break-up legislation, an idea attracting interest in Congress and causing alarm on Wall Street.

(more…)

Sen Dodd seeks more muscle in US financial reforms

Senate Banking Committee Chairman Sen. Chris Dodd listens to testimony at the Senate Banking Committee on Capitol Hill in Washington, July 23, 2009.      REUTERS/Larry Downing (UNITED STATES POLITICS BUSINESS) By Kevin Drawbaugh
WASHINGTON, Nov 10 (Reuters) – Pushing for tougher changes in U.S. financial regulations, the Senate’s top banking legislator on Tuesday proposed a new super-cop to police banks, a systemic risk agency and strong consumer protections.
(more…)

  •