Sunday, June 27, 2010

Finance Reform Bill, Lobbyists Shift to Regulations

Congress agreed on the Financial overhaul legislation, now Lobbyists and consumer advocates continue their battle: influencing hundreds of new rules and regulations.

Scott Talbott, lobbyist for the Financial Services Roundtable: “Where the rubber meets the road is the regulatory process.”

President Obama hopes to sign the bill into law by the Fourth of July. In weekly address on Saturday, Obama said, “I urge Congress to take us over the finish line, and send me a reform bill I can sign into law, so we can empower our people with consumer protections, and help prevent a financial crisis like this from ever happening again.”

Obama's signature will start the clock on dozens of deadlines embedded in the legislation for regulators from a host of agencies, including the Federal Reserve, the S.E.C. and the F.D.I.C. More on Lobbying and Regulatory follow-through from Sunday NY Times page A1.

Law Firms and others offering overviews and guidance:

Info on one from Debevoise: Please click here to register
by July 6, seating limited.
If you prefer to join the seminar by webcast,
please e-mail: or call +1 212 909 1988.

SIFMA's summary of the Dodd-Frank agreements. Right here a summary for Hedge Fund - New Standards and Regulation

Fills Regulatory Gaps: Ends the “shadow” financial system by requiring hedge funds and private equity advisors to register with the SEC as investment advisers and provide information about their trades and portfolios necessary to assess systemic risk. This data will be shared with the systemic risk regulator and the SEC will report to Congress annually on how it uses this data to protect investors and market integrity.

Greater State Supervision: Raises asset threshold for federal regulation of investment advisers from $30 million to $100 million, a move expected to significantly increase the number of advisors under state supervision. States have proven to be strong regulators in this area and subjecting more entities to state supervision will allow the SEC to focus its resources on newly registered hedge funds.
Also this week: hearings before the Financial Crisis Inquiry Commission (FCIC) on Wednesday and Thursday on the role of derivatives in the financial crisis. Joseph Cassano who ran AIG Financial Products, the division behind the insurer's meltdown in September 2008, has evaded public appearances since leaving the insurer some two years ago.

Cassano, will face-off with a panel investigating the causes of the financial crisis. The son of a Brooklyn policeman, Cassano has been the subject of criminal and civil investigations in the United States and abroad, but recently had the specter of prosecution lifted when the U.S. Department of Justice and SEC ended their investigations against him and other AIG executives.

Cassano will rub shoulders with a star cast, which includes Goldman President Gary Cohn and CFO David Viniar
who will testify at hearings before the FCIC next Wednesday and Thursday on the role of derivatives in the financial crisis.

Former AIG CEO Martin Sullivan and AIG Chief Risk Officer Robert Lewis also expected to headline the panel's hearings.

The hearings comes on the heels of Congress' votes on financial reform legislation to address the financial crisis. The roles of Goldman and AIG have been scrutinized since U.S. taxpayers committed hundreds of billions of dollars to bail out the banking industry. Read article about the FCIC hearings.

Tuesday, June 22, 2010

Investment Management Compliance Openings prior to final version of financial-revamp bill

While Lawmakers have yet to tackle the most controversial, divisive issues of the financial-revamp bill, we are seeing some large Investment Management entities including Hedge Funds begin to interview for new Compliance and Legal requisitions.

Of current opportunities, one not posted on any website requires 10+ years in Investment Management Compliance. This is located in Stamford, CT. The Company is a well-known, leading Hedge Fund Group. The role will be handling regulatory examinations, annual compliance review, annual testing review, registrations. Base potential all-in $250K+.

Lawmakers drafting the final version have resolved some difficult issues, including increasing scrutiny of Federal Reserve decisions. Democrats said they want to conclude this week and send the final bill to the president by July 4. That leaves only a few days to resolve issues, such as the "Volcker rule" and a measure that would force banks to spin off derivatives operations. Read more in The Washington Post "Volcker Rule," named after former Fed chairman and presidential adviser Paul Volcker, would ban banks from proprietary trading - trading with their own money.

For a candidate closer to entry level with an Investment Bank, Surveillance Analyst job description can be viewed at the Rosenthal Recruiting job board. Other openings include Director of Audit for a Commercial Bank, Fixed Income - Mortgage Trading Compliance Officer, Chief Compliance Officer in Florida and Capital Markets Compliance.

Tuesday, June 15, 2010

Lobbyist Roadblocks on the Financial-Overhaul Bill

What are the reasons why bending the ear of lawmakers suddenly has become a bigger challenge for financial-services industry lobbyists?
Some lawmakers want to avoid the slightest appearance that Wall Street is getting another chance to throw its weight and money around on key provisions of the bill, including toughened oversight and other bank/securities cash cows.

Although Democrats are hoping to have the financial-overhaul bill signed into law by July 4: Barney Frank is still holding meetings by phone.

Some banks have been told that their views are known enough already, given the long debate over how many legislative changes are needed in response to the financial crisis. Not surprisingly, banks and securities firms still are pressing their case. Bank of America CEO Moynihan recently met with White House and J.P. Morgan Chairman Dimon has made a series of phone calls to lawmakers to argue that several provisions of the bill could damage the banking system and overall economy.

"The closer you get to the end of the process, the more intense everyone's efforts get," says William Sweet, a partner at law firm Skadden, Arps. "A lot of people are losing sleep."

In the first quarter, the latest period for which figures are available, the securities and investment industry spent $28 million on lobbying, according to the Center for Responsive Politics. Some of that spending likely is funding part of the current lobbying push. If the first quarter's pace continues through the rest of 2010, the industry's total lobbying would surpass by 18% the all-time high set in 2008. (Pictured chart courtesy of WSJ on Page C1 6/15/10)

Tuesday, June 8, 2010

Taking the Conn and Nicking the Con...Financial landscape changes before overhaul is complete

Financial landscape changes before overhaul is complete. SEC Anti-Flash Crash Rules in Place any day.

As shared on LinkedIn today, Compliance/Legal/Audit types may very well like a fresh, yet historical take on "the Con" - in the post-bubble. Madoff, Stamford era.

The book "Taking the Conn and Nicking the Con" by John Hauss is so well-written with personal and historical anecdotes - of Cold War Military missions and FBI cases, including many well-known. With interest in these matters you will find a very enjoyable read with a witty perspective.

About the Author of "Taking the Conn and Nicking the Con":
John (Jack) Hauss is a graduate of Villanova and Fordham Law School. Serving three years aboard the amphibious attack transport ships Chilton and Navarro, he filled such billets as Information Center Officer, Legal Officer, Personnel Officer, Division Officer, and Boat Officer. As an FBI agent, assignments took him overseas and to locations in Georgia, South Carolina, California, Washington State, New York, and New Jersey. Retired, he resides in New Jersey with his wife and together they enjoy spending time with their six children and 12 grandchildren.

Tuesday, June 1, 2010

Compliance Officers and "Whistleblowing" Retaliation

Can any Broker-Dealer, Investment Advisor Compliance Officers mention any experience you have had yourself or observed with retaliation for "Whistleblowing."

Are you aware of any study, survey or article regarding the extent to which compliance officers are concerned that they may be subjected to retaliation or other adverse action as a result of their activities?
This question was asked at the Society of Corporate Compliance and Ethics (SCCE) LinkedIn Group. As of June 1, there were 13 replies at the SCCE Group.

The Attorney who posted the question, surmised that the situation may be more prevalent than commonly known because - to no one's surprise - very few compliance officers want to talk about it openly.

Twitter Updates

    follow me on Twitter

    Call Rosenthal Recruiting to Discuss your Hiring Needs and Career

    (973) 826-0537