Monday, July 23, 2012

Is Money Market Fund Reform Just Regulatory Overkill?

Author: David Schwartz J.D. CPA
Banking regulation is inappropriate for MMFS and would end MMFs as we know them at great cost to the millions of investors who value them for their efficiency and safety, and to the financial system as a whole. 


Already subject to a comprehensive regulatory regime, amendments in 2010 to the rules governing money market funds tightened regulation even further to make money funds more resilient to certain short-term market risks, and to provide greater protections for investors in a money market fund threatening to "break the buck."  More recently, however, Federal Reserve officials and some members of the Financial Stability Oversight Council have said money market funds are subject to runs, a source of systemic risk, and part of a shadow banking system that sorely needs even more regulation.  In response, Melanie L. Fein, former senior legal counsel to the Board of Governors of the Federal Reserve System has published a paper describing why further changes to the money market regulatory regime are unwarranted overkill.

Comments (0)
Number of views (8243)

Monday, June 25, 2012

Fed Goes "All In" on Basel III Standards, But Prefers a Phased Approach

Author: David Schwartz J.D. CPA

The Board of Governors of the Federal Reserve System voted on June 7 to approve proposed rules intended to implement the regulatory capital standards promulgated under “Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems.” These proposals are also intended to harmonize the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 with Basel III requirements.  These proposals are a comprehensive set of three capital requirements that, if approved, would be applicable to all insured banks and thrifts, savings and loan holding companies, and bank holding companies with consolidated assets over $500 million.
 

 
Comments (0)
Number of views (6930)

Thursday, February 9, 2012

UK Chancellor of the Exchequer Voices Concerns Over Volcker Rules

Author: David Schwartz J.D. CPA

George Osborne, the UK's Chancellor of the Exchequer, voiced concerns about the potential negative effects the proposed Volker Rule provisions may have on the liquidity of global funding markets and particularly non-US sovereign debt markets.  Osborne communicated these concerns via a January 23, 2012 letter to Fed Chairman Ben Bernanke.

Comments (0)
Number of views (6413)

Friday, December 9, 2011

Senate Finance Committee Asks for Volcker Rule Delays and Revisions

Author: David Schwartz J.D. CPA

In a December 7 letter to the Fed, SEC, CFTC, OCC, and FDIC, House Financial Services Committee Chair Spencer Bachus (R-ALA) requested that the comment period for the proposed regulations implementing the Dodd-Frank Volcker Rule be extended for at least 30 days to accommodate a January 18, 2012 Financial Services Committee hearing. At present, the comment period for the regulations expires on January 13, 2012. Senator Bachus's letter claims the proposed regulations go too far, and that the proposals "are not clear and need much work."

Comments (0)
Number of views (5244)

Thursday, December 8, 2011

US Banking Regulators Seek Additional Comment on Market Risk Capital Rules

Author: David Schwartz J.D. CPA

The Fed, the FDIC and the OCC have issued a release seeking additional comment on proposed modifications to the agencies’ market risk capital rules for banks with significant trading activities. This release amends a December 2010 proposal, and includes alternative standards of creditworthiness to be used in place of credit ratings to determine the capital requirements for certain debt and securitization positions covered by the market risk capital rules. 

Comments (0)
Number of views (5033)
RSS
First234567891011