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The percentage of workers who say they witnessed Foreign Corrupt Practices Act violations at their firms almost doubled from 2009 to 2011 as post-financial crisis regulations have enhanced awareness and enforcement of the anti-bribery law, according to a report from the Ethics Resource Center (ERC). In 2011, 9 percent of respondents to the biennial ERC survey [...]
Carlo di Florio, director of the SEC’s Office of Compliance Inspections and Examinations, discusses with Dana Wilkie the risk alert his office issued last week. The alert warned that firms may be violating Rule G-37 by doing business with municipal securities issuers within two years of their municipal finance professionals making contributions of more than $250 to the issuers’ elected officials. Q: Rule [...]
The International Swaps and Derivatives Association is pushing for regulators to use a “fuller” model to measure liquidity risk outlined in an international plan for stricter capital standards for trades. ISDA believes the fuller risk model, which more closely resembles ones larger banks currently use internally, “is a better one,” said Peter Sime, head of risk [...]
There’s a fear in the financial industry that U.S. regulators intend each year to make an example of a handful of banks by rejecting their stress tests, said Scott Siefers, a research managing director at Sandler O’Neill & Partners LP. “In discussions with clients and other analysts, I’d say there’s certainly a fear that every year there will be this possibility that — [...]
European Parliament lawmakers are seeking views on how to prevent any repeat of the scandal engulfing interbank lending rates and on whether manipulation of the benchmarks was more widespread than reported. The U.K. may draw on the euro area’s attempts to build a banking union to bolster its case for an opt-out from EU plans [...]
Money-market mutual funds will test the resolve of the U.S. Federal Reserve and Treasury Department to prevent another financial crisis after the $2.6 trillion industry successfully lobbied against more regulation by the Securities and Exchange Commission. Fed Governor Daniel Tarullo has said the central bank could tighten rules on banks’ borrowing from money-market funds, and [...]
Bundesbank board member Andreas Dombret said financial regulation is not being reformed quickly enough … William C. Dudley, president of the Federal Reserve Bank of New York, said new rules are needed to protect the financial system from a run on money-market mutual funds … Swedish Finance Minister Anders Borg said the government’s first priority [...]
Prudential Plc Chief Executive Officer Tidjane Thiam said last week that some versions of the European Union’s Solvency II regime currently being discussed by regulators continue to be “completelywrong.” Thiam objects to proposals that would force EU insurers to hold extra capital with their U.S. divisions if regulators conclude the Solvency II Directive is not [...]
Wayne Abernathy, executive vice president of financial institutions, policy and regulatory affairs at the American Bankers Association, says the Basel global capital standards are a bad fit for the U.S. and will require American banks to add at least $60 billion to their already “high” capital levels. “If imposed without adjustments the new Basel rules [...]
U.S. banks, working to comply with Basel III rules before they are final, are attracting new retail deposits to meet liquidity ratios and eliminating trust-preferred securities that will no longer count toward capital requirements, according to regulatory consultants. The Basel III guidelines, which will be phased in between January 2013 and 2019, call on regulators [...]
