Financial Regulatory Forum

Brokerages stumble on following in-house supervision rules – study

By Suzanne Barlyn

CORONADO, Calif., (Reuters) – Wall Street’s brokerages are falling short when it comes to policing their brokers, according to a nationwide series of examinations by state regulators.

The biggest issue: Many firms are not following their own procedures for keeping employees in check. (more…)

MF Global bankruptcy shows regulatory resolve

By Nick Paraskeva

Nov. 1 (Thomson Reuters Accelus) - The 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…)

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