“JPMorgan Chase & Co.’s Mike Cavanagh, who served as a close deputy to Chief Executive Officer Jamie Dimon for more than two decades, will leave to become co-chief operating officer of Carlyle Group LP. “Cavanagh, 48, was seen internally as a potential successor to Dimon, 58, who has told people he wants to remain CEO […]
“U.S. securities regulators, under pressure from the asset-management industry, are preparing to exempt a majority of money-market mutual funds from a central plank of rules intended to curb risks in the $2.6 trillion market, according to people familiar with the agency’s discussions. “The Securities and Exchange Commission, poised to implement structural changes to money funds […]
“State-owned China Development Bank, which does the bidding of Beijing, will team up with Barclays BARC.LN PLC in a wide-ranging deal under which the British lender will offer services to the Chinese bank around the world. “Stock and bond sales, foreign-exchange trading, day-to-day commercial banking and staff training are among the areas covered by the […]
“U.S. banks will tell shareholders on Wednesday how much they plan to pay out after the U.S. Federal Reserve unveils whether they can afford the cost and still be robust enough to weather the next crisis. “It is part of a two-step annual regulatory check-up of the health of the largest U.S. banks. Last week, […]
“The Consumer Financial Protection Bureau says it is in the late stages of formulating new regulations for the payday lending business. “The announcement, embargoed for release until midnight Tuesday, came as the agency published new research that it’s expected to use in writing the rules. “The research suggests that many consumers who use payday loans […]
“The largest US banks have benefited from a significant funding advantage over their smaller peers, according to new research from the Federal Reserve Bank of New York that is likely to invigorate a heated debate over the future of “too-big-to-fail” lenders. “The amount of taxpayer “subsidy” enjoyed by large banks, thanks to an implicit assumption […]
“Rajat K. Gupta, who was one of the world’s most admired corporate executives before insider trading charges derailed his career and threatened his freedom, hit another legal setback on Tuesday. “In a unanimous ruling, a federal appeals court rejected Mr. Gupta’s bid for a new trial, upholding a 2012 conviction that was a milestone in […]
“The British government plans to reduce sharply its stake in the Lloyds Banking Group, another sign of the strengthening of the financial sector here. “Lloyds, a British lender, received a bailout of 17 billion pounds, or about $28 billion, from the British government during the financial crisis. “On Tuesday, U.K. Financial Investments, which manages the […]
“Wall Street banks and their foreign rivals have paid out $100bn in US legal settlements since the financial crisis, according to Financial Times research, with more than half of the penalties extracted in the past year. “The sum reflects a substantial shift in political attitudes towards banks, as regulators and the Obama administration seek to […]
“The five former Bernard Madoff aides on trial for perpetuating the biggest Ponzi scheme in U.S. history never had a chance once deliberations began, jurors who delivered a guilty verdict on all 31 counts said. “The defendants were seen as liars who wanted to get rich off the $17.5 billion fraud, requiring little persuasion before […]
“Yet another proposal for winding down Fannie Mae and Freddie Mac and overhauling the nation’s housing finance system will be put before Congress on Thursday, this one by Representative Maxine Waters of California, the ranking Democratic member of the Financial Services Committee. “The major distinction of Ms. Waters’s proposal is that it would make the […]
“More Chinese companies are heading toward default as higher funding costs and slowing growth weigh on existing debt commitments, according to Morgan Stanley. “The pressures are now on for the corporate default rate to be moving higher,” said Viktor Hjort, the Hong Kong-based head of Asia fixed-income research at the U.S. lender. “Any economy that […]
“Of the three foreign banks that suffered the ignominy of having their capital plans fall foul of the US Federal Reserve’s stress tests, the failure is likely to be most painful for Royal Bank of Scotland. “It is almost certain to delay RBS’s plan to file for an initial public offering of Citizens, its US […]
“The unexpected belly flops in Federal Reserve tests of some banks on Wednesday will cast a fresh cloud of uncertainty over the sector as lenders gird themselves for similar exercises in Europe later this year. “Analysts on Thursday warned that regular stress tests were becoming a significant hurdle to banks’ freedom of manoeuvre as supervisors […]
“The European Central Bank will soon find out how hard it can be to keep a secret. “The ECB’s plan to keep its health check on euro-area lenders under wraps until the completion of a stress test in October could be undermined by national rules requiring disclosure far sooner. Domestic regulators may order banks to […]
“Several officials from the Consumer Financial Protection Bureau are being called to testify before a House subcommittee next week on recent allegations that employees were being mistreated. “The House Financial Services Oversight and Investigations Subcommittee said it will hold a hearing April 2 to look into statistical disparities that showed the CFPB’s white employees were […]
“UBS AG suspended foreign-exchange traders in the U.S., Singapore and Switzerland as its investigation into the alleged rigging of currency markets widened, according to a person with knowledge of the matter. “They include Onur Sert, an emerging-markets spot trader based in New York, and at least three more worldwide, said the person, who asked not […]
“The Federal Reserve Board denied Citigroup Inc.’s capital plan on Wednesday, saying it had failed to make sufficient improvements to a number of deficiencies in its capital planning processes. “Citi was one of five firms to have its capital plan rejected by the central bank as part of the Fed’s annual stress test exercise known […]
“Bank of America is paying $6.3 billion to settle a lawsuit arising out of troubled mortgage-backed securities it cobbled together and sold to Fannie Mae and Freddie Mac in the run-up to the financial crisis. “The bank agreed on Wednesday to pay that sum to settle a lawsuit filed on behalf of the two government-sponsored […]
“WASHINGTON – A collective of business trade groups on Wednesday warned of potential risks for end users of margin requirements mandated under the Dodd-Frank Act. “The Coalition for Derivatives End Users said the vast majority of companies responding to a recent survey conducted by the alliance worry the rules could adversely impact how they hedge […]
“I’ve heard that charge numerous times from the Conservatives I know — that these government-supported agencies were the ones at fault for the “bad” Mortgages of last decade, and as a result responsible for the ultimate collapse of the Mortgage-Backed-Securities market. This they claim, this govt-charity for the poor, led directly to the Great Recession […]
“It is a small miracle that on February 1, Janet Yellen will become chair of the Federal Reserve. She is not just the first woman to head America’s central bank but the first labor economist. While the Fed is ordinarily obsessed with inflation, Yellen has given equal or greater emphasis to unemployment. Yellen represents a […]
“Putting to rest one of its biggest remaining headaches, Bank of America Corp. has agreed to pay $9.5 billion to settle claims by Fannie Mae and Freddie Mac. “The government-sponsored mortgage finance giants had demanded compensation from the Charlotte, N.C., bank for losses on securities backed by faulty loans issued during the housing boom. “The […]
“More than two dozen federal officials who helped enact new rules for Wall Street have decamped from government for lucrative jobs in the private sector. “Many of the officials who were foot soldiers in the Dodd-Frank effort have moved on to law firms, with several now advising clients on how to comply with the complex […]
“The Federal Reserve rattled Wall Street last week when it seemed to suggest that it could begin raising a key short-term interest rate earlier than investors expected. Wonkblog sat down with San Francisco President John Williams for an exclusive hour-long interview on his outlook for policy and the economy over the next few years. “Williams […]
“Taxes are inevitable, but not so deductions. And that has become an issue of late as the courts weigh in on whether a taxpayer — either an individual or a company — can deduct the costs related to a government enforcement action. “A recent decision from the Court of Federal Claims in Washington looked at […]
“A tax on the balance sheets of big banks – first proposed by US President Barack Obama in 2010 but later shelved – is back on the political agenda. Last month Dave Camp, Republican chairman of the House of Representatives ways and means committee, put forward a proposal for tax reform that included a 0.035 […]
“Anyone who thinks the current lull in multibillion-dollar bank settlements means the payouts have peaked should talk to the US Federal Reserve. “Last year, a protracted and damaging negotiation with the Department of Justice ended with JPMorgan Chase paying $13bn to settle allegations that it mis-sold mortgage-backed securities. Citigroup, Bank of America and Wells Fargo […]
“Could the U.S. financial system really not survive the collapse of Zions Bancorporation? “The Salt Lake City-based lender has received more than its fair share of attention, after suffering the indignity of being the only company to flunk the Federal Reserve’s latest stress tests. Much has been written about the implications for Utah’s largest bank, […]
“A federal jury on Monday found five associates of the convicted swindler Bernard L. Madoff guilty of 31 counts of aiding one of the largest Ponzi schemes in history. “With that verdict, the jurors rejected the former employees’ central defense: that only Mr. Madoff had known the evil purpose behind the chores he told them […]
“Better Markets, Inc. (“Better Markets”), a nonprofit organization that promotes the “public interest” by “argu[ing] extensively for the adoption of appropriately strong rules governing the derivatives markets” and for “broad application of those rules to international or ‘cross-border’ transactions,” submitted an amicus brief in support of the CFTC’s position in the lawsuit filed by ISDA, […]
“U.S. regulators concerned that banks and brokerage firms remain too dependent on risky types of short-term funding are weighing new rules designed to reduce reliance on parts of what is often called the shadow banking system.” “The SEC is considering new funding rules for brokers as well as a limit on leverage similar to those […]
“Myron Marlin, a former top aide to the chairwoman of the Securities and Exchange Commission, has joined a prominent consulting firm in Washington.” “FTI Consulting — which advises businesses undergoing litigation, regulatory problems and other events — announced on Thursday that Mr. Marlin had become a managing director focused on financial issues and public affairs.” […]
“LONDON – Another day, another iteration of financial fraud innovation.” “‘A British financial regulator on Thursday fined and barred a veteran Credit Suisse bond trader for manipulating the price of British bonds in 2011 during one of the periods of so-called quantitative easing, when the Bank of England bought large amounts of government bonds to stimulate the […]
“Federal Reserve stress tests found Bank of America, Morgan Stanley and Goldman Sachs would suffer huge losses in a financial crisis, curbing their ability to return capital to shareholders.” “All the major US banks passed the tests, which modelled a hypothetical recession and market meltdown to gauge the resilience of the financial system. Of 30 […]
“The Securities and Exchange Commission is conducting a formal inquiry into an online gambling website’s Bitcoin-denominated stock sale after the agency signaled that such dealings may break U.S. laws.” “The SEC sent a letter asking MPEx, an online exchange for Bitcoin-based trading, to provide contracts and other documents relating to SatoshiDice.com, according to a copy […]
“For months now a debate has been raging in economic circles about the long-term unemployed. One group argues that the current unemployment rate, currently at 6.7 percent, is unrepresentative of the labor market because it doesn’t include the millions of long-term unemployed: discouraged workers who have left the labor market. The other side argues that […]
“Deutsche Bank AG (DBK), Europe’s biggest investment bank by revenue, raised the total compensation of Anshu Jain and Juergen Fitschen by 53 percent each for their first full year as co-chief executive officers.” “Jain, 51, and Fitschen, 65, were each paid 2.3 million euros ($3.2 million) in salary last year, an increase of 26 percent […]
“The New York attorney general, Eric T. Schneiderman, is expanding his crackdown on the high-frequency traders that dominate financial markets.” “Mr. Schneiderman announced on Tuesday that he was scrutinizing services that allow fast traders to profit on important information before other investors even see it. He urged regulators and stock exchanges to curb some of these […]
“The Securities and Exchange Commission will soon review recommendations for possible regulatory action targeting proxy advisory firms, SEC Chair Mary Jo White said on Wednesday.” “White did not offer any details on what kinds of new rules or changes could be in store for proxy advisory firms like Glass Lewis and Institutional Shareholder Services, which […]
The Commodity Futures Trading Commission, citing an inability to fully understand swaps-market data, has begun an overhaul of information collected by the Depository Trust & Clearing Corp., CME Group Inc. and others. The top U.S. derivatives regulator released a request for comment yesterday on about 70 questions on ways to change how and which information […]
“The U.S. Federal Reserve will probably end its massive bond-buying program this fall, and could start raising interest rates around six months later, Fed Chair Janet Yellen said on Wednesday, in a comment which sent stocks and bonds tumbling.” “Yellen’s remarks at her first news conference as the head of the central bank pointed to […]
“JPMorgan Chase, Citigroup, Morgan Stanley and other banks will find out if the Federal Reserve thinks they can cope with the next financial crisis when it publishes the results of an annual health check on Thursday.” “If the Fed finds that any of the 30 banks subject to the so-called stress tests are still at […]
“Bankers are not exactly popular these days, but is it right to let directors escape scot-free when they do wrong and an investment bank pays the bill?” “A Delaware judge recently found the Royal Bank of Canada’s investment bank liable for up to $250 million based on a claim that the investment bank, RBC Capital […]
“The Financial Industry Regulatory Authority (FINRA) and BATS Exchange, Inc. have jointly ordered Citigroup Global Markets Inc. to pay approximately $1.1 million in connection with short selling ahead of participating in five public offerings of securities in violation of Rule 105 of Regulation M.” “The payments include the disgorgement of more than $538,000, plus interest, […]
“JPMorgan Chase has agreed to sell its physical commodities business to Mercuria, the Geneva-based trading house, for $3.5bn, becoming the latest investment bank to scale back its activities in the sector.” “The deal, which is expected to close in the third quarter of 2014, will lift privately owned Mercuria into upper tier of global commodity […]
“The Federal Reserve continued its slow exit from stimulus Wednesday.” “The central bank announced it would cut by $10 billion the size of its monthly bond purchases that make up its latest round of quantitative easing, dropping it to $55 billion. In its policy statement, the Fed also abandoned a threshold it had previously set […]
“From his office on the 17th floor of midtown Manhattan’s red enameled Lipstick Building, Bernard Madoff often handled billions of dollars in a single day.” “These days, at the medium-security prison here, the man convicted of orchestrating the biggest Ponzi scheme in American history is forbidden from possessing even a handful of quarters” “Inmates are […]
“An influential New York bank regulator has privately raised concerns in recent weeks about a proposed rule that seeks to make the nation’s largest banks safer, frustrating other regulators who see it as a centerpiece of a financial system overhaul and want it to take effect swiftly.” “William C. Dudley, president of the Federal Reserve Bank […]
“The New York attorney general, Eric T. Schneiderman, is expanding his crackdown on the high-frequency traders that dominate financial markets. “Mr. Schneiderman announced on Tuesday that he was scrutinizing services that allow fast traders to profit on important information before other investors even see it. He urged regulators and stock exchanges to curb some of […]
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