Geithner Pressures SEC to Act

U.S. Treasury Secretary Timothy Geithner has written a letter urging the Financial Stability Oversight Council (FSOC) to recommend new regulations on money market funds. Geithner’s letter to the FSOC comes on the heels of SEC inaction. In August, SEC head Mary Shapiro announced that she did not have the...

Regulators Target Non-Bank Companies

Regulators are poised to target non-bank firms that are deemed to be potential risks to the U.S. financial system. After the nearly $182.3 billion bailout of AIG, regulators want to impose more rigorous regulations on firms posing a potential risk to the U.S. financial system.  Potential firms targeted by...

Bill Aims to Increase White House Oversight of Financial Regulators

Lawmakers are pushing a bill that would greatly weaken the autonomy and influence of regulators such as the Commodity Futures Trading Commission and the Securities and Exchange Commission.  The bill, which is set to go before a Senate committee later this month, would allow the president to second guess...

Volcker Rule to be Finalized by Year’s End

A rule prohibiting banks from engaging in proprietary trading is expected to become final by late December, and compliance will be required shortly thereafter, according to a Treasury official familiar with the matter. The rule, named for former Fed Chairman Paul Volcker, is intended to prevent banks from...

Bank Downgrades Trigger Call for Central Clearing

Following the downgrade of 15 major banks’ credit ratings by Moody’s, a group of proprietary traders and hedge funds has renewed its call for mandatory central clearing for OTC derivatives. “We urge the regulators to complete the implementation of the clearing mandate under Dodd-Frank as expediciously...

SEC Delays Crucial Swap Definition Rule

The SEC is delaying a new Dodd-Frank-mandated rule defining swaps, jeopardizing the timeline for a number of other rules that cannot come into effect until swaps are defined, said sources familiar with the matter. The CFTC is said to have completed its work on the rule, but because the two agencies must...

House, Senate to Square Off Over CFTC Funding

The Senate Appropriations Subcommittee on Financial Services and General Government approved an appropriation of $308 million for the CFTC for fiscal year 2013, an increase of roughly $103 million over the agency’s current budget. Under the proposal, the SEC budget would increase by $245 million to roughly...

SEC Unveils Timeline for Derivatives Rules

As part of its ongoing efforts to create rules mandated by the Dodd-Frank Act, the SEC released a “roadmap” on Monday that gives over-the-counter (OTC) markets an idea of the order in which rules affecting them are expected to take effect. The roadmap indicates that fundamental definitions, such as those...

CFTC Funding Targeted for Cuts by House Committee

The House Appropriations Committee’s fiscal 2013 spending package was released today, causing a chorus of protests from financial regulators. The budget proposal would cut the CFTC’s budget by $25 million, while raising the SEC’s by $50 million. The Republican-led committee’s plan runs counter to the...

CFTC Commissioner Chilton Calls for HFT Regulation

While regulatory flashpoints such as capital requirements and proprietary trading receive more attention from the media, one CFTC commissioner is trying to raise awareness of a trading method he says could cause major problems if it continues to fly under the regulatory radar. Commissioner Chilton has long...