Financial Regulation

Finra’s Axelrod Focused on $32.3 Million Paid in Restitution in 2014

February 13, 2015

The Financial Industry Regulatory Authority levied $134 million in fines, buoyed by a $43.5 million settlement over analysts’ IPO pitches, and $32.3 million in restitution in 2014. This is more than double the $65 million in fines levied in 2013 and more than triple the $9.5 billion in restitution paid that year, according to an annual report. New disciplinary

European ABS Revival Curbed by Capital Rules

February 6, 2015

BY BEN MOSHINSKY, ALASTAIR MARSH AND JIM BRUNSDEN Tough capital rules are undermining a drive to revive the European asset-backed securities market, according to Deutsche Bank AG, Barclays Plc and other companies. New capital charges for ABS are a “multiple” of those for the underlying assets, and if left unchanged they would “substantially

U.K. Markets Regulator Fines Rose in 2014 on FX Sanctions

January 30, 2015

The U.K. Financial Conduct Authority issued fines totaling 1.47 billion pounds in 2014, according to data from the agency. This is up from 2013’s 610 million-pound total — 474 million pounds of which was levied by the FCA, which took over as the U.K. markets regulator from the Financial Services Authority in April 2013. The FCA’s 1.47

2015 Timeline: Regulators Turn to Compliance, Enforcement in 2015 as Post-Crisis Rules Take Effect

January 27, 2015

2015 TIMELINE by Cady North, Regulatory Specialist, Bloomberg Enterprise Solutions Regulators Turn to Compliance, Enforcement in 2015 as Post-Crisis Rules Take Effect Jan. Basel III risk weighting and liquidity requirements take effect globally. This includes daily calculation of the liquidity coverage ratio, or LCR, to ensure banks have enough funding

Banks, Integrated Utilities Top Dodd-Frank Lobbiers

January 23, 2015

BY MELISSA KARSH, BLOOMBERG BRIEF EDITOR Fifty-six companies in 21 industries have filed lobbying disclosures on Dodd-Frank Act rules related to inter-affiliate swaps in 2013 and 2014, according to a Bloomberg Intelligence analysis of Congressional lobbying reports. Banks, including JPMorgan, Wells Fargo and Fifth Third Bancorp, have been most active in lobbying on

Basel’s Trading-Book Review Takes Wrong Turn on Risk Transfer, Standard Model

January 21, 2015

Adam Litke, head of riskstrategy at Bloomberg LP,says the Basel Committee on Banking Supervision’s December 2014 proposal on its fundamental review of the trading book veers off in the wrong direction when it comes to internal risk transfer and the revised standard model. He says that while he had high hopes for this proposal when the second consultative document

Volcker Concerns on Everyone’s Agenda This Week

January 16, 2015

BY MELISSA KARSH, BLOOMBERG BRIEF EDITOR This week Volcker Rule delays were the subject of legislation in the U.S. House, as well as a topic of discussions between European Union and U.S. regulators. On Jan. 14, the U.S. House approved legislation to delay parts of the rule that bars banks from making

New Year, Old Threats: Regulators Target Cyber-Risks

January 9, 2015

BY MELISSA KARSH, BLOOMBERG BRIEF EDITOR Regulators globally are on the attack this year, focusing on the threat to financial institutions and markets posed by cyber-attacks — one of the top headline makers of 2014 with some of the biggest banks and retailers falling victim to hacking and cybersecurity breaches. Bloomberg Brief: Financial

CFTC, SEC Are Most Active Agencies on Dodd-Frank Rules at the End of 2014

December 19, 2014

The U.S. Commodity Futures Trading Commission and Securities and Exchange Commission have each issued 85 final Dodd-Frank rules since the law’s 2010 enactment through Dec. 17, 2014, the highest number among the 10 regulatory agencies writing rules required under the law, according to Bloomberg Government data. The CFTC has issued the most proposed rules among the 10 agencies with 95,

Post-Crisis Rules Seen Increasing Market Dangers

December 12, 2014

BY ADAM LITKE, HEAD OF RISK STRATEGY AT BLOOMBERG LP Regulators have boxed themselves into a corner, with the very rules that have made the banking system safer apparently increasing dangers in the markets. Consider a recent Bank for International Settlements report on market making and proprietary trading. The authors of the report, who are