Thursday, January 29, 2009

Oversight Panel Calls for New Regulator w/YouTube Video

Congressional Panel monitoring bailout plan recommended regulatory changes in a report . Report came with a YouTube Video. New regulators' sweeping powers might include capital/liquidity requirements on “too big to fail” category.

Senators introduced a bill requiring Hedge Funds to register and publicly disclose. Hedge Fund Transparency Act of 2009 would close loopholes that allow Hedgies to escape current Mutual Fund regulation. NYT art.

Wednesday, January 28, 2009

The Big Fix

Economy will recover. Not anytime soon. Likely to get significantly worse over the course of 2009, no matter what Pres. Obama and Congress do. Resolving the financial crisis will require both aggressiveness and creativity. HatTip NYTimes. Once governments decide to use enormous resources at their disposal, they have typically been able to shock an economy back to life.

Monday, January 26, 2009

Search to Replace Schapiro; Luparello FINRA Interim CEO

Stephen Luparello interim FINRA CEO. Replaces Mary Schapiro, now SEC Chair after Senate approval. Board named search committee seeks permanent replacement.

Sunday, January 25, 2009

Obama Plans Fast Action

Wide-ranging changes, including hedge fund rules, for rating agencies,mortgage brokers, and mortgage backed securities' underwriting standards. Also preparing for regulation of derivatives such as Credit Default Swaps. NYT More on Likely Hedge Fund Registration.

Wednesday, January 21, 2009

How BNY Mellon Weathered Meltdown

Click to read the article at Meltdown saw 22 banks fail, but, several majors stood tall, perhaps none taller than BNY Mellon. Legal takes some of credit. How did in-house team help keep the bank afloat?

Financial Regulatory Reform Coming

Time for Congress to create comprehensive regulators who can regulate, if necessary, the entire U.S. financial market. Financial regulators should be provided tools to meet, and perhaps prevent, the next crisis. See more from the The Deal Professor who is testifying today at a hearing called “Where Were the Watchdogs? The Financial Crisis and Breakdown of Financial Governance.”

Thursday, January 15, 2009

Obama's SEC Head Tough Enough?

When he nominated Mary Schapiro to lead the SEC, Obama criticized regulators for having "dropped the ball" in a "failure of oversight" in the market meltdown and Madoff scandal. But a close WSJ examination of Schapiro's record shows she has infrequently pursued tough action against big Wall St firms. NASD-NYSE regulatory-merger that Schapiro oversaw shifted power to larger firms at expense of small ones and (nka Finra) missed the mortgage crisis and Madoff.

Tuesday, January 13, 2009

Will the Regulators be Fired? Help Wanted: Stockbrokers

First, Fire the Regulators
Our financial-oversight system needs more than just a makeover. Read More at Portfolio. Graphic: Remaking Regulators

Help Wanted: Wall Street Stockbrokers, No JokingDetails about retention bonuses for MS and Citi brokers haven't been announced. Smith Barney's top-grossing broker threatened to defect last summer. In response, Citi offered to promote him to management to boost his pay. When that didn't work, CEO Vik Pandit offered to move his personal account from Morgan Stanley, his former employer, to Mr. Zinman's supervision at Smith Barney. Zinman jumped to Credit Suisse anyway.

Thursday, January 8, 2009

Starting Overhaul of Wall St Not Encouraging

Will Obama deliver on promise of a “21st-century regulatory framework” for the financial system? The NYT editorial board says the early signs, including his selections for major financial posts, “not terribly encouraging.”

Geithner, Obama Treasury man, was “closest regulator to Wall Street during the years when the excesses that led to the crisis proliferated.” Gensler to lead the CFTC, oversaw legislation that exempted derivatives — including CDS, which amplified the damage — from oversight by the federal commodity regulator. Relying on market discipline to keep risk in check has been a “manifest failure.” Among changes urged are limits on use of leverage to boost profits, stronger capital requirements, more oversight of swaps and derivatives and Hedge Fund Regulation.

Obama Administration Could Mean More Compliance Regs Read more at The Datakos Blawg
Financial meltdown coupled with Democratic control seems like a recipe for a host of new compliance regulations — and thus more business for storage vendors and more work for storage administrators. While it might be years before all this results in any kind of international consensus, another round of regulation is almost certainly at hand.

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