Tuesday, April 28, 2009

Supreme Court hears arguments that could change Big Bank Regulation

Federal and state regulators squared off over which part of government should serve as the nation’s watchdog for national banks. Threat of action by the federal regulators, Office of the Comptroller of the Currency stated, is “a significant incentive for national banks to address any compliance issues before they become serious problems.” And when such gentle measures fail, the comptrollers wrote, the agency “does not hesitate to take aggressive enforcement action against national banks.” The role of states, they argued, is to pass along information about “possible problems,” leaving enforcement to the federal regulators. More via NYT.

Another Way To Axe Short Sellers

This take from courtesy of Dealbreaker about the news that a top European Union market regulator mulls new curb on short selling [Reuters]: Instead of banning short-selling outright, why not squeeze settlement times so tightly as to make it de facto impossible? Eddy Wymeersch, (in picture)chairman of the Committee of European Securities Regulators pointed out that moving settlement from the rough European (and just about everywhere else) standard of T+3 to T+0 "would largely enable us to eliminate short selling."

Sunday, April 26, 2009

After Off Year, Wall Street Pay Bouncing Back

If pace set in first quarter continues average pay for bankers — much in bonuses — will rebound from lows of last year. As compensation has been put in the spotlight for being so high when many banks have received taxpayer help, six biggest banks set aside over $36 billion to pay employees, according to review of financial statements. Goldman stands out for setting aside most per person and set aside $4.7 billion for worker pay in the quarter. Would add up to average pay of $569,220 per worker — almost as much 2007, a record year. “We need to be able to pay our people,” said spokesman for Goldman. Hatip NYT.

Friday, April 24, 2009

Big U.S. Bank Judgment Day

Wall Street stressed out about stress tests. 19 largest banks start learning on Friday how they fared — and which will need another bailout. While many reported surprisingly strong first-quarter earnings, Banks are by no means out of the woods. A number likely to need more capital to weather a prolonged recession and losses that might accompany it. All Stressed Out news.

Tuesday, April 21, 2009

Wall Street Elite Head Back to School

Some Wall St elite have moved out of NY since onset of the credit crisis. Times past, they may have opened their own hedge fund or investment firm. Some now flocking Back to School - or to 'ivory towers' instead. Gregory Fleming, former Merrill president traded in wingtips and pinstripes to take a position at alma mater Yale Law School. Frank Yeary, Citi former M&A became a vice chancellor at University of California, Berkeley and his onetime boss, Michael Klein, left Citi investment banking to go to Princeton. Meanwhile, Edward Frost left as head of Goldman investment management to become Harvard EVP. They're leaving in perhaps the most uncertain time in banking in decades. Will a few will head back to finance at some point? Article from Time.

Monday, April 20, 2009

Issuer Retaliation - Will the SEC Act?

There is a name for a certain kind of disgusting behavior: issuer retaliation. Either the SEC recognizes that this is a problem and takes strong action against the Overstocks of this world, or it might as well close up shop and convert its Washington office building into condos. More? Gary Weiss via Portfolio

Friday, April 10, 2009

Americans "Fool's Paradise" Now Gone Forever

George Soros says US has been “living in a bubble for 25 years” and blamed much of current crisis on decades of blind faith in supposed wisdom of the markets. The interview, which you can watch, came almost exactly a year after Soros described a “superbubble” that was in the process of bursting. Since, some of Wall St’s most famous financial institutions have failed or been sold at bargain-basement prices. Now, government considering sweeping changes to regulations that date back to Depression and it's time to “rebuild the financial system on sounder grounds.

Saturday, April 4, 2009

Should FINRA or any SRO Have Jurisdiction Over Investment Advisers?

In recent testimony to the Senate Banking Committee, the Executive Director of the Investment Advisor Association argued against so-called "harmonization" of broker-dealers and investment advisers laws and rules. Specifically, he strongly opposed the idea of FINRA or any other SRO acquiring regulatory jurisdiction over IAs. Washington's top two securities cops making no bones about their desire to create a consistent regulatory scheme for both BDs and IAs. Schapiro comments echo those made by Ketchum, her successor as FINRA chief. More from Investment News» Follow or join in a Discussion with thoughtful commentary at the Broker-Dealer, Investment Advisor Compliance Officers Group at LinkedIn. Pictured Mary Schapiro and Sen Chris Dodd from 3/26/09 hearing "Enhancing Investor Protection and the Regulation of Securities Markets – Part II" Click for 3 Panel,4 hour+ video.

Thursday, April 2, 2009

Why and What's SIPC?

What is SIPC? In light of Madoff, this article attempts to answer basic questions about SIPC's purpose and functions. Created in 1970, SIPC's purpose is to promote investor confidence by offering protections after a brokerage firm fails owing its customers cash or securities. SIPC's main function is to return securities and funds to investors. FOOTNOTES and more courtesy Jones Day and Law.com

Twitter Updates

    follow me on Twitter

    Call Rosenthal Recruiting to Discuss your Hiring Needs and Career

    (973) 826-0537