Editor, Global Regulatory Briefing
Randall's Feed
May 7, 2010
via Financial Regulatory Forum

The Big Glitch – trading error or tipping point?

Was it a trading error, or the tipping point of market anxiety? A range of potential factors has drawn scrutiny after the record 1,000 point plunge and rebound in the Dow Jones industrial average on Thursday.

While the regulators try to figure out what happended and how to respond, here is some commentary on the fall:

May 5, 2010
via Financial Regulatory Forum

US Senate OKs plan for dismantling ailing financial giants – details

WASHINGTON, May 5 (Reuters) – The U.S. Senate on Wednesday approved an amendment to a sweeping Wall Street reform bill that would set up a new government protocol for seizing and dismantling large financial firms that are in distress.

Here is a description of the bipartisan plan, in a statement by Senate Banking Committee Chairman Christopher Dodd, a Democrat.

May 3, 2010
via Financial Regulatory Forum

INSIGHT-Emails reveal Goldman’s Glengarry Glen Ross side

By Matthew Goldstein

NEW YORK, April 30 (Reuters) – Brass-knuckle sales tactics, worthless assets and clueless investors: the vignettes that emerge from hundreds of pages of three-year-old emails from members of Goldman Sachs Group’s mortgage securities trading desk would not be out of place in a David Mamet play.

In “Glengarry Glen Ross,” Mamet depicted the aggressive and desperate sales tactics employed by a group of salesmen to push worthless Florida real estate on unsuspecting buyers. The play helped popularize that age-old mantra of salesmen everywhere: “ABC or Always be Closing.”

Apr 26, 2010
via Financial Regulatory Forum

Copy of shareholder suit against Goldman Sachs, Blankfein over Abacus

Goldman Sachs Group Inc <GS.N> and Chief Executive Lloyd Blankfein were hit with a shareholder lawsuit claiming they hid key details about a risky transaction that resulted in civil fraud charges and a plummet in its stock price. Goldman Sachs Group Inc  and Chief Executive Lloyd Blankfein were hit with a shareholder lawsuit claiming they hid key details about its Abacus transaction that resulted in civil fraud charges and a plummet in its stock price.  Here is a copy of the suit.
Apr 24, 2010
via Financial Regulatory Forum

SEC summary for U.S. senator on senior staff porn use at work

Did senior staffers of the U.S.  Securities and Exchange Commission watch porn on their government computers while the financial system burned? Here is a link to an SEC inspector general’s summary report, via the Washington Post, which was prepared for Republican Sen. Charles Grassely of Iowa.

Apr 16, 2010
via Financial Regulatory Forum

BREAKINGVIEWS – Western probes a risk for multinationals in Russia

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

By Jason Bush

MOSCOW, April 16 (Reuters Breakingviews) – Hewlett-Packard is under investigation for paying bribes in Russia. It’s the latest sign that western regulators are paying close attention to Russian business practices. The resulting reputational and legal risk may now be the biggest worry for foreign companies in Russia.

Apr 14, 2010
via Financial Regulatory Forum

FACTBOX – UK parties’ policies on banks, bonuses, M&A, jobs

LONDON, April 14 (Reuters) – Britain’s three main political parties have published their manifestos ahead of a general election on May 6.

Below are details of their business policies in areas such as banking, regulation, acquisitions, executive bonuses and job creation.

Mar 25, 2010
via Financial Regulatory Forum

Reuters Summit – Regulators, fund providers, at odds over investor information

By Antonia van de Velde and Martin de Sa’Pinto

LUXEMBOURG, March 24 (Reuters) – Regulators and fund providers agree on the need to restore investor faith in financial markets, but are at odds over how to both ease client fears and guarantee a greater degree of security.

Regulators want more information on funds and investments to ensure investors are fully aware of the risks they are taking on, but the industry faces a tough challenge in informing clients of potential risks without scaring them off.

Mar 24, 2010
via Financial Regulatory Forum

ANALYSIS – Dodd bill takes pass on key U.S. broker reforms


By Helen Kearney

NEW YORK, March 23 (Reuters) – As Senator Christopher Dodd’s financial regulatory reform bill heads to the full Senate, brokerages for now have escaped tougher regulation thanks largely to fierce lobbying by insurers.

A bill approved by the Senate Banking Committee on Tuesday took a pass on two big issues affecting financial advisers — a uniform fiduciary standard for all professionals advising investors and rules that mandate brokerage customers take disputes to an industry arbitration panel.

Mar 4, 2010
via Financial Regulatory Forum

Germany wants reports of bank-stock short positions

FRANKFURT, March 4 (Reuters) – German financial watchdog Bafin will introduce new rules this month requiring reporting of short sale positions in major German financial stocks.

The new rules, which come into effect on March 25, will let Bafin intervene effectively if it determines that short positions may threaten financial stability, the watchdog said in a statement.