Dark Pool Checklist

Buyside traders don't know enough of what goes on within dark pools they use. Traders Mag link Related Nasdaq Plans to Pay for Dark Orders

The Fed, more on Rumors, Lehman

Fed Acted on Lehman Rumor, urged CS to keep ties 50% of LEH almost sold to Chinese or Koreans FTsecret talks

Goldman Hires Lobbyist

Experienced, influential and from DC, will work on/with foreign investors.
Article from The Hill »
Politico.com »

Street’s Woes, Year Later; Brokers Balk

Investment Dealer’s Digest looks at last 12 months.
“This is the worst I have ever seen,” former Salomon exec said. IDD has numbers: IPO volume and merger deals way down, and securitization deals at level not seen in over a decade.

ARS: Brokerages Balk as Banks Settle: JPM, Merrill, Citi, MS, UBS agreed. Fidelity and others? Boston Globe and WSJ links

FDIC Presses Bank Regulators To Be Warier WSJ : disagreement centers on the Camels rating

10 Exchanges Agree to Stronger Oversight

NYSE and FINRA more power for insider trading.
MORE »

Auction-Rate Blowback Continues: Wachovia buy back of billions sold to retail. Cuomo and Merrill Still At Odds Inquiry Turns to Discounters Schwab, Fido, TD

If Elected Pres. Rivals Differ (a Bit) on Financial Market Rules

Did It Help to Curb Short Sales? Naked Speculators? Rethinking Research ?

NYT Columnist writes about the temp. rule that made it harder to short some financials — may have helped raise prices and reduce volume. Rule expired Tuesday.

Reining in CDS market - Rising Priority for Regulators. NYT columnist writes, one positive of heightened regulatory interest is a push to make participants more scrupulous about assigning proper values to credit insurance stakes. Rude awakening for many players?

Rethinking Research on Wall St: Citi moving research out of Smith Barney. Chinese Walls from Spitzer settlement will still be in place and analysts will not be reporting to banking heads. Frank Quatrone weighs in.Breakingviews article for more

Fed shores up financial system, slashing short-term interest

HEARD ON THE STREET today Pressing the Street into tens of billions of dollars worth of Auction-Rate-Securities (ARS) settlements, NY Attorney General Cuomo now a financial-markets cop in ways not planned.

Fed Keeps Window Open; Short Extension

Also late yesterday SEC announced an extension for its emergency ban on naked short sales in 19 financials, noting this will be the last extension of the rules. Get Shorty at FOXBusiness and All news on Shorts today.

Barron's editorial on SEC naked short rule "Swatting an Imaginary Fly,"


SEC Naked Short Sale Plans Could Transform Stock Loan Game? LocateStock.com one of a few organizations positioned to cash in.

Who Will Watch Investment Banks?

SEC chairman told House Committee that interconnected markets make it necessary to keep closer watch. Links to CNBC Video, Reuters, NYT, Bloomberg, House Financial Services Hearing Page

SEC Alerts Compliance Officers

New ComplianceAlert letter identifies common deficiencies that SEC examiners recently found during examinations of registered firms.
Areas include: Personal Trading, Soft Dollars, proxy votes, valuation and collateral, BD affiliated insurance, mortgage financing as credit for securities, Supervisory and compliance controls over OSJs and Transfer agent practices.

Bank-Broker Stocks post- Rumor, Bloomberg

Short Sale Rule Could Spur More CDS Shorts
New rules on naked short sales may push more use of Credit Default Swaps. Hedge Funds and others use CDS in place or in addition to using equity shorts. Move could also move more transactions offshore: derivatives can be put on to fly under radar. SEC emergency order to curb improper shorts in financials effective Mon.7/21-should exclude Market Makers acc. to WSJ.

Bulge Bracket Questioned Over Rumors

Subpoenas also sent to more than 50 hedge funds, “a new front in the broadest U.S. investigation of Wall Street trading since state and federal regulators targeted mutual-fund abuses in 2003.” Links to WSJ (Subscription Req'd) and Bloomberg

Plan to Shore Up Fannie, Freddie | Argument for Clear Capital Rules, not Fed

WSJ includes article and video link on why Washington and Fed decided to shore up confidence in mortgage buyers Fannie Mae and Freddie Mac.
Cox Testifies on Regulatory Responses to Financial Markets
Argument for Clearer Capital Rules, Not a Fed Role In WSJ, Carnegie Mellon professor and author of “A History of the Federal Reserve,” intones, “Investment banks don’t need the Fed to regulate them. Some clear rules on capitalization would suffice.”

Promotions at Legend

Stuart Rosenthal Vice President, Compliance joined Legend following a successful career in compliance. Stuart has developed a vast database of contacts in the compliance business over 20 years. He has successfully leveraged his network over this last year and as a result, is building a reputation as a top industry talent. Stuart has introduced Legend to numerous and creative marketing techniques including Legend's blog which provides current news, all in one place, about the world of compliance and which is updated routinely. Stuart is ready and willing to help and is a pleasure to work with.

Calls for Overhaul of Bank Regulations

Overview and Paulson video link To complement regulatory efforts, called for strong market discipline to reinforce the stability of markets. A tougher regulatory system can allow financial institutions to fail without wider turbulence. Paulson also said the Fed needs sweeping powers that would make it easier to get information — and intervene if necessary. Fed and SEC to Compare Notes, Hank Paulson Blesses Union- Dealbreaker


Global Regulations Need Bolstering, F.S.A. Chief Says “Throughout the world, regulation has been found wanting. In very many countries there have been examples of regulatory inadequacies.” Highlighted problems with risk management at Citi, SocGen and RBS.

Little Compliance Hiring in Chicago

Article on JobsintheMoney.com Little Compliance Hiring in Chicago
Summary: While compliance jobs abound in NY, San Fran and other parts of U.S., in Chicago the market remains sluggish. "Some (financial) firms are adding on the compliance side, but things are moving slower in Chicago," says Stuart Rosenthal of Legend Global Search, a New York-based recruiting firm which specializes in compliance and legal placement. Rosenthal, who does considerable business in Chicago, adds, "A lot of searches are getting put on hold."