Financial Regulation >>>

    Mexican Banks Are Ahead of Basel III Capital Standards

    The core capital of Mexico’s five largest banks and its banking system is already consistent with Basel III rules, a Federal Reserve Bank of Dallas report showed. The report said banks still fall short of standards for non-core capital, as subordinated debt made up 81 percent of the system’s other capital and 10 percent of total capital as [...]

    Tougher Rules Said to Be Aim of JPMorgan Probe

    A U.S. Senate panel probing the multibillion-dollar trading loss by JPMorgan Chase & Co. plans to unveil its findings at a hearing this year to press regulators to tighten the Volcker rule, according to three people briefed on the matter. Staff members of the Permanent Subcommittee on Investigations, headed by Senator Carl Levin, have interviewed JPMorgan officials [...]

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    Workers Paying More Attention to FCPA Violations

    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 [...]

    Compliance Issues Found in ‘Dozens of Cases’ Prior to Muni Pay-to-Play Alert, Says di Florio

    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 [...]

    ISDA Urges Use of ‘Fuller’ Liquidity Risk Model

    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 [...]

    Banks Fear Failing Stress Tests, Says Sandler’s Siefers

    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 — [...]

    EU Libor Review, South Korea’s Basel Implementation, Wall Street Leaderless in Rules Fight

    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 Funds Test Geithner, Bernanke Resolve

    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 [...]

    For The Record

    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 [...]

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