“The surge in subprime auto loans since the end of the recession has been most pronounced among riskier borrowers, and auto finance companies typically tied to car manufacturers are leading the parade, according to a new study released by the New York Federal Reserve Bank on Thursday. “Banks make up only a small share of the subprime […]
Dennis Kelleher, President and CEO of Better Markets, talks about the proposed SEC supercomputer that would be used to track orders and peer into dark pools. Speaking with Pimm Fox on Bloomberg Television’s “Taking Stock,” Kelleher also highlighted the issues with outsourcing the construction of the consolidated audit trail (CAT) computer and the need to bring transparency and oversight to […]
“Bankers are nearly unanimous on the subject of Anat R. Admati, the Stanford finance professor and persistent industry gadfly: Her ideas are wildly impractical, bad for the American economy and not to be taken seriously. “But after years of quixotic advocacy, Ms. Admati is reaching some very prominent ears. Last month, President Obama invited her […]
“Around 2:30 p.m. on May 6, 2010, the U.S. stock market began to crash. It fell 600 points in five minutes, erasing about $800 billion in value. The market largely rebounded by day’s end, but investors were spooked. “It took the U.S. Securities and Exchange Commission more than four months to piece together what had happened: A […]
“WASHINGTON — The Department of Justice and Bank of America have reached a record settlement in principle in which the bank will pay just under $17 billion to resolve allegations related to fraudulent marketing of mortgage-backed securities that helped cause the nation’s economic crisis, an official with knowledge of the negotiations said Wednesday. “The tentative […]
Better Markets’ Senior Fellow, Robert Jenkins, had the following column published in Financial World: “The financial crisis shone a harsh light on many issues in banking including: excessive leverage in the banking system; imprudent liquidity management; risks associated with interconnectivity; too big to fail; too big to manage; pay structures; accounting conventions; transparency; subsidies; accountability and corporate […]
As you may know, the Department of Labor (“DOL”) is working to update and close loopholes in the rules under the Employee Retirement Income Security Act (“ERISA”) that relate to fiduciary duties of financial services firms that provide investment advice to retirement plans and plan participants. As currently written, those rules allow financial services firms […]
“Four years after passage in July, 2010 of the grandiloquently-named Dodd-Frank Wall Street Reform and Consumer Protection Act we’re pretty much back to square one in terms of fixing the major causes of the financial meltdown of 2008-2009. “Yes, a very few positive things have happened. Thanks mainly to prodding from Federal Reserve Governor Daniel Tarullo, […]
Washington, D.C. – Dennis Kelleher, President and CEO of Better Markets, and Benoît Lallemand, Head of Strategic Development for Finance Watch, issued this joint statement following the Securities and Exchange Commission (SEC) proposal to require high frequency traders (HFT) to register with a national securities association: “Predatory high frequency trading is not only damaging our markets, […]
“With Citigroup Inc. agreeing to pay $7 billion for issuing toxic mortgage securities, the Justice Department now turns to settling its case against what analysts call the biggest mortgage miscreant of all: Bank of America Corp. “The government has contended that the Charlotte, N.C., lender bears responsibility not only for its own mortgage bonds, but […]
The Securities and Exchange Commission adopted a rule on Wednesday to rein in derivatives trading by foreign branches of United States banks, moving to strengthen oversight of a risky business that helped cause the financial crisis. The rule, unanimously supported in a vote by the agency’s five commissioners, clarifies which foreign subsidiaries need to register with the […]
You may not see it on the front pages of your newspaper, but close examination will reveal an extreme unease from banking regulators about the current trajectory on Wall Street. The Office of the Comptroller of the Currency (OCC), not typically seen as a strident regulator, is warning about risky lending as low interest rates drive a […]
“Regulators around the world are struggling to keep pace with the constantly evolving shadow banking sector, as they grapple with gaps in their understanding of the financial system and inter-agency turf wars play out in key jurisdictions. “While the broad concept of shadow banking is easy to sketch out – essentially lending or other credit […]
“The U.S. economy last month finally recovered all the jobs lost in the 2007-2009 recession. But it’s been an uneven recovery, leaving two-thirds of states still short of their peak for total payrolls. “Seventeen states plus the District of Columbia had more jobs in May than their peaks before or during the recession. Seasonally adjusted total […]
“Bank of America Corp. failed to win dismissal of two government lawsuits in which it’s accused of misleading investors about the quality of loans tied to $850 million in residential mortgage-backed securities. “U.S. District Judge Max O. Cogburn Jr. in Charlotte, North Carolina, ruled yesterday that the U.S. Securities and Exchange Commission properly laid out claims […]
“The top U.S. securities regulator wants to make the bond market fairer for small investors, and that could take a bite out of profits for Wall Street’s biggest banks. “Securities and Exchange Commission Chairman Mary Jo White unveiled plans Friday to make pricing information in the combined $14 trillion corporate- and municipal-bond markets easier to get. Ms. […]
“BNP Paribas SA and U.S. prosecutors have agreed to broad terms of a deal in which the bank would pay $8 billion to $9 billion and accept other punishment based on what investigators say is evidence the bank intentionally hid $30 billion of financial transactions that violated U.S. sanctions, according to people close to the probe. “The […]
“The story so far on financial reform is not a pleasant one. Fortunately and perhaps surprisingly, in part through the efforts of a growing number of people – including Anat Admati and Sheila Bair, recently interviewed on Moyers & Company – there is now some movement in the right direction. “In the early and mid-2000s, US officials allowed […]
“The coddling of big banks is at the heart of Eric Cantor’s shocking election upset, is a claim supported by a new study on the topic. “As if providing the campaign toolset for campaign managers not afraid to offend the control of the large banks, Better Markets Dennis Kelleher considered Dave Brat’s primary campaign message and defeated Eric […]
“Whistleblowing is not for the faint-hearted – and especially not on Wall Street. “On Wall Street, as everyone now knows, wrongdoing by bankers, traders and executives led to disaster in 2008 after they were rewarded for taking risks with other people’s money. Leading bankers and traders were motivated – by the hope of getting large […]
“Congressional Democrats say Attorney General Eric Holder has a long way to go before proving to them that the nations’ largest banks aren’t “too big to jail.” “Holder plugged this week’s guilty plea from Credit Suisse on a conspiracy to aid tax evasion charge as evidence that not even the world’s largest banks are above […]
“The Securities and Exchange Commission is investigating a number of big “dark pools,” according to people familiar with the probes, as stock-market regulators ramp up pressure on the private trading venues. “Investigators are exploring whether the trading systems are properly disclosing to clients how they operate, treating all investors fairly and protecting confidential client information, […]
“Recessions are always painful, but the Great Recession that ran from late 2007 to the middle of 2009 may have inflicted a new kind of pain: an era of slower growth. “It has been five years since the official end of that severe economic downturn. The nation’s total annual output has moved substantially above the […]
“The government is urging a federal judge to toss a lawsuit that seeks to torpedo its $13 billion settlement with JPMorgan Chase. The lawsuit claims that the feds let the big bank off too easily. “The historic November settlement was the largest in US history. As part of the settlement deal, the nation’s largest bank was […]
“European Union antitrust regulators charged Europe’s biggest bank HSBC, U.S. peer JPMorgan and France’s Credit Agricole on Tuesday with rigging financial benchmarks linked to the euro, exposing them to potential fines. “The European Commission also said it would charge broker ICAP soon for suspected manipulation of the yen Libor financial benchmark. “U.S. and European regulators […]
“Bank of America Corp. (BAC) said it sent incorrect data to a U.S. regulator that made its private stock trading platform look bigger than it actually is. “The Financial Industry Regulatory Authority, one of the organizations that polices U.S. stock trading, yesterday for the first time published data on the size of alternative trading systems. Bank of America’s […]
“After years of operating in the shadows, dark pools are coming into the light. “Goldman Sachs Group Inc. and Credit Suisse Group AG, two of the biggest operators of opaque trading venues known as dark pools, which execute trades away from stock exchanges, on Monday published documents explaining in detail how their venues work. “The disclosures came on the […]
“The Securities and Exchange Commission has rolled out its intentions to regulate high-frequency trading, making stricter regulation in some form a strong possibility, but the agency faces more work and some challenging obstacles before it can put new rules in the books. “SEC Chair Mary Jo White in a speech last week outlined her goals […]
“Pushback by the Securities and Exchange Commission is complicating a regulatory effort to investigate whether large asset managers should be labeled “systemically risky.” “Chairman Mary Jo White and other top SEC officials have voiced skepticism of the idea, joining lawmakers from both political parties who suggest it is unnecessary. Their intervention has significantly bolstered efforts […]
“A Securities and Exchange Commission official said the private-equity industry has more work to do concerning disclosure to investors, building on comments a month earlier from one of the regulatory body’s directors. “Igor Rozenblit, co-head of the SEC’s private funds unit, called the private- equity industry to task over its communication and transparency with investors, […]
“A relaxed rule aimed at improving mortgage quality moved closer to approval after the Securities and Exchange Commission removed a key objection, according to officials familiar with the process. “The compromise approach is designed to assuage some regulators’ concerns that the rule may not go far enough to prevent the type of lax underwriting that […]
“A relaxed rule aimed at improving mortgage quality moved closer to approval after the Securities and Exchange Commission removed a key objection, according to officials familiar with the process. “The compromise approach is designed to assuage some regulators’ concerns that the rule may not go far enough to prevent the type of lax underwriting that […]
“U.S. securities regulators and the Chinese affiliates of the Big Four accounting firms have been discussing a potential settlement of their dispute over access to the firms’ audit documents about their Chinese clients, according to a filing late Monday. “The firms—the Chinese arms of PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young and KPMG—have been in […]
“A judge overstepped his authority when he blocked a $285 million settlement between Citigroup Inc. and government regulators over toxic mortgage securities, a federal appeals court panel said Wednesday. “The 2nd U.S. Circuit Court of Appeals in Manhattan reversed a decision by Judge Jed S. Rakoff to set a trial date for the case brought […]
“United States bank regulators are descending deep into the plumbing of the financial system as they seek the most fitting punishment for the giant French bank now in the cross hairs of the law enforcement authorities. “BNP Paribas is expected to plead guilty in the coming weeks to charges that it processed payments for companies and […]
“Federal judge Jed Rakoff made waves in November 2011 when he rejected a proposed neither admit nor deny consent decree between the Securities and Exchange Commission (SEC) and Citigroup, ruling that the settlement was “neither reasonable, nor fair, nor adequate, nor in the public interest.” “Now, the Second Circuit has overturned Judge Rakoff and let the […]
“A federal appeals court Wednesday overturned a judge’s rejection of a $285 million settlement between the Securities and Exchange Commission and Citigroup, ruling that the judge failed to determine the deal would ‘disserve the public interest.’ “The much-anticipated decision by the U.S. Court of Appeals for the 2nd Circuit concluded that U.S. District Judge Jed […]
“The Department of Justice has responded to a lawsuit brought by the public interest group Better Markets in February challenging the Department’s $13 billion settlement with JPMorgan Chase. “Better Markets filed the lawsuit challenging the Justice Department’s authority to unilaterally enter into the unprecedented and historic $13 billion agreement with JPMorgan Chase, which was the largest settlement […]
“The pace of passing major financial reform rules has slowed to a crawl at the US Securities and Exchange Commission, frustrating some officials at the SEC and at other regulatory agencies who are upset by the lack of activity, according to people with direct knowledge of the matter. “While the SEC has issued numerous enforcement actions this […]
“Bank of America Corp (BAC.N) is looking to diversify its investment banking business by doing more equity underwriting and merger advisory work and by winning more clients outside the United States, a senior executive said on Tuesday. “Underwriting debt “has been one of [Bank of America’s] great strengths, but clearly thebusiness is changing” as industry-wide volumes look set to fall […]
“Former Goldman Sachs Group Inc trader Fabrice Tourre said Tuesday he would not appeal an order requiring he pay more than $825,000 after a jury found him liable for defrauding investors in a failed mortgage deal. “Tourre’s announcement came on the deadline to lodge an appeal in the case, ensuring the U.S. Securities and Exchange Commission’s August […]
“It is rare that the Securities and Exchange Commission announces a new approach to pursuing violations. Mary Jo White, the agency’s chairwoman, did just that last week when she pointed to a seldom-used provision of the federal securities laws that the S.E.C. will employ against people who use others to do their bidding. “In a speech […]
“Credit Suisse has done what no other bank of its size and significance has done in over two decades: plead guilty to criminal wrongdoing. “In a sign that banking giants are no longer immune from criminal charges, despite concerns that financial institutions have grown so large and interconnected that they are too big to jail, federal […]
“The official line on Wall Street is that an abundance of caution among clients in the face of uncertainty, especially around the direction of interest rates, has depressed trading volumes, volatility and revenues. A similar tale appears to be unfolding at banks themselves. “In the first quarter, the collective holdings of Treasurys by U.S. banks […]
“Gwen Moore does not seem like anybody’s idea of a corporate stooge. The Milwaukee Democrat, a single mom who once survived on welfare, has sponsored efforts to boost public housing, reproductive freedom, food-stamp benefits, Social Security payments, environmental protection, veterans benefits and the minimum wage. And that’s just in the past year. “So it’s strange […]
“The White House has been getting an earful in the past year from members of the Senate Banking Committee, who haven’t been shy about suggesting criteria for nominees at the Federal Reserve. “On Wednesday, Sens. Jeff Merkley (D., Ore.) and Elizabeth Warren (D., Mass.) continued with such unsolicited advice, sending a letter to President Barack Obama urging him to fill two vacant seats […]
“Executives from some of the biggest U.S. financial firms said a slump in trading that has hammered bank results for more than a year is likely to continue to weigh on profits. “Large investors are retreating from the market, big trades are rare and price swings are shrinking, executives told investors at an industry conference […]
“J.P. Morgan Chase & Co. Chief Executive Officer James Dimon has told investors he wants to stay with the largest U.S. bank for as many as five more years, according to people familiar with the conversation. “‘I’m going nowhere,’ Mr. Dimon said during an April 23 lunch at a hotel overlooking Boston Harbor, according to people who attended. […]
“Mary Miller, the U.S. Treasury Department’s undersecretary for domestic finance, said regulators could eventually decide against naming any asset managers systemically important. “’That’s certainly an option,’ Miller said in an interview with Bloomberg Television today. ‘We have to determine are there risks, and if there is a determination that there are risks, then you have […]
Dennis Kelleher appeared with Stephen Moore on C-Span’s Washington Journal to discuss former Treasury Secretary Timothy Geithner’s career and legacy. Watch the video here
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