News

Current Articles | RSS Feed RSS Feed

SEC Scrutinizing Bank Efforts to Comply with Capital Rules

By Jody Shenn
February 18, 2015, Bloomberg

The Securities and Exchange Commission is scrutinizing banks’ efforts to appear safer to regulators and shareholders.

The agency is looking for improper behavior related to how banks value complicated assets and to transactions they use to shift risks to other entities, said Michael Osnato, head of the complex financial instruments group in the SEC’s enforcement division.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

JPMorgan Bankers Charged in Germany Over $64 Million in Swap-Sale Losses

By Karin Matussek
February 9, 2015, Bloomberg News

Two JPMorgan Chase & Co. employees were charged in Germany over the sale of swaps to the city of Pforzheim that resulted in 57 million euros ($64 million) of losses, prosecutors said.

The two men were charged with aiding in aggravated breach of trust for selling “highly speculative” swaps to the municipality, Mannheim prosecutors said in an e-mailed statement Monday. The indictment was filed two years after three city officials were charged over the deal.

full article describe the image (free)


SocialTwist Tell-a-Friend Related Posts with Thumbnails

Warren, Cummings Ask Wall Street for Answers on Dodd-Frank Rollback

By Victoria McGrane
January 29, 2015, The Wall Street Journal

Elizabeth Warren and her allies are keeping up the pressure on the contentious Dodd-Frank rollback that made its way into a must-pass $1.1 trillion spending bill at the end of last year.

Ms. Warren (D., Mass.) and Rep. Elijah Cummings (D., Maryland) sent letters to four top Wall Street banks Thursday asking for details about how the firms will alter their derivatives trading operations in the wake of the change. Mr. Cummings is the top Democrat on the House Committee on Oversight and Government reform and Ms. Warren a member of the Senate Banking Committee.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Banks Must Bear the Risk of Derivatives Losses, CME Paper Says

By Matthew Leising
January 20, 2015, Bloomberg

CME Group Inc., the world’s largest derivatives market, wants its bank members to bear responsibility for ensuring there is enough cash on hand in the case of a default.

The debate over how clearinghouses are managed and the level of resources available has gone back and forth between the Chicago-based exchange owner and its largest bank members such as JPMorgan Chase & Co. CME said in a white paper published today it has set aside the equivalent of 5.25 percent of the money its bank members have put into a collective default fund. In September, JPMorgan said CME’s contribution, referred to as skin in the game, should equal 10 percent.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Top Democrat Says Regional Banks Key to Wall Street Win on Derivatives

By Amanda Becker and Emily Stephenson
December 16, 2014, Reuters

A top Democrat in the U.S. House of Representatives on Tuesday said unpopular Wall Street banks got a long-sought rollback to Dodd-Frank reforms through Congress last week partly by leveraging the influence of smaller banks that hold greater sway with lawmakers.

"They have been working for a long time, trying different strategies on it," California Representative Maxine Waters said in an interview. "The big banks are in trouble with most legislators... so they put the regional banks in front of them in order to gain more support."

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

JPMorgan to HSBC Are Accused of Euribor Rate Rigging by EU

By Gaspard Sebag
Published May 20, 2014 Bloomberg

JPMorgan Chase & Co. (JPM:US), HSBC Holdings Plc (HSBA) and Credit Agricole SA (ACA) were accused today by the European Union’s antitrust arm of colluding to manipulate interbank lending rates.

The trio received antitrust complaints alleging they participated in a cartel to rig Euribor. The so-called statement of objections is the next step in the EU enforcement process after the lenders dropped out of settlement talks last year.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

JP Morgan Puts Derivatives Reg Costs at US$1bn

By Christopher Whittall
Published February 26, 2014 IFR

The new global regulatory framework for derivatives will cost JP Morgan around US$1bn in revenues per year, shaving 5% off its overall markets revenues by 2016.

The figures published in investor presentations yesterday give one of the clearest indications yet of the impact of central clearing, electronic trading, reporting and initial margin rules, which are set to change the face of the derivatives industry.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

JPMorgan's Masters Joins Regulator Advisory Committee

By Douwe Miedema
Published February 6, 2014 Reuters

Blythe Masters, who heads JPMorgan's commodity business, has joined a committee advising the U.S. derivatives regulator, the agency said on Thursday, a move that comes as Masters' bank is shedding part of its physical commodity operations.

The Commodity Futures Trading Commission (CFTC) on Thursday voted on the new composition of its Global Markets Advisory Committee, a group of market participants that meets regularly to discuss a broad range of issues.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Swaps-Clearing D-Day Set to Trim Dealer Profits: Credit Markets

By Matthew Leising and Silla Brush
Published March 11, 2013 Bloomberg

The $639 trillion over-the-counter derivatives market begins the largest transformation in its 30- year history today with rules intended to contain another financial crisis, trimming profits for Wall Street banks.

Companies from JPMorgan Chase & Co. (JPM) to BlackRock Inc. are now required under the 2010 Dodd-Frank Act to have most of their privately negotiated swaps trades backed by a clearinghouse that’s capitalized by the world’s largest banks. That means dealers and their customers have to post upfront collateral to absorb losses if a firm defaults and settle daily losses.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Banks to Cash In as U.S. Derivatives Reforms Go Live

By Douwe Miedema
Published March 7, 2013 Reuters

Banks have been complaining bitterly about new laws to sort out their industry, even though they were blamed for playing a part in the credit meltdown. But this time round, new U.S. rules look set to help them.

Starting on Monday, hedge funds and other large investors must guide their trading in derivatives through traffic control centers known as clearinghouses.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails
All Posts