The Bank for International Settlements has issued preliminary locational and consolidated banking statistics for the quarter ended September 30, 2011.
BIS Issues Preliminary 3Q 2011 International Banking Statistics
read more
Category:
Volker and Legislators Defend the Volker Rules
Responding to strident criticism of proposed regulations implementing the Volker Rule, former Fed Chair Paul Volker and the Senate authors of the Dodd-Frank Volker Rule provisions defended the rule as absolutely vital and urged the SEC and banking agencies to eliminate unjustified exclusions and exemptions, such as proposed hedging exemptions related to bank investments in private funds.
Is the Evidence There to Revamp Reporting under 13(d)?
Lucian Bebchuk, Professor of Law, Economics, and Finance at Harvard Law School and Robert J. Jackson, Jr., Associate Professor of Law at Columbia Law School have published a paper urging caution and concluding that the SEC should not proceed with a recently proposed tightening of blockholder reporting. While not opposing some re-examination of the blockholder reporting regulatory regime, Bebchuk and Jackson explain that changes should be examined in the larger context of the beneficial role that outside blockholders play in American corporate governance and the broad set of rules that apply to such blockholders.
SEC Chair Lays Out the Future of OTC Derivatives Regulation
In an address in February before the Practicing Law Institute, SEC Chairman Mary Schapiro outlined for the audience the Commission’s plans to build, from the ground up, a new regulatory regime for over-the-counter derivatives. The innovative and heretofore lightly regulated OTC derivatives market has long been seen by Schapiro as a risk to the financial system. In particular, she sees systematic risks posed by: the opacity of the derivatives market; weak or non-existent capital, margin and clearing and settlement requirements; and the concentration of derivative transactions among a relatively small number of institutions.
Beyond Basel. Can We Do Better than Basel III?
Even as countries strive to meet the quickly approaching Basel III deadlines, some fairly influential voices in regulatory policy are wondering aloud if the latest Basel guidelines are up to the task. Thomas M. Hoenig, director of the Federal Deposit Insurance Corporation, in a September 14, 2012 address before the American Banker Regulatory Symposium, raised his concerns that Basel III is based on faulty assumptions and processes, and introduces unworkable complications into an already complex system. Hoenig proposes an alternative, a “back to basics” approach he feels would be more easily monitored and enforced, and represent a better measure of a firm’s ability to withstand financial adversity.
NYSE Proposes Listing Rules for Derivatives and Structured Products
Nasdaq has proposed new rules for the the qualification, listing, trading, and delisting of a broad list of structured notes and other related products. Although the present NASDAQ Rule 5710 includes initial listing standards for equity index-linked securities and commodity-linked securities, NASDAQ’s proposal would amend Rule 5710 to add continuing listing standards for equity index-linked securities and commodity-linked securities. Nasdaq has also proposed Rule 5711 which would impose listing standards for a host of other equity-linked, commodity-linked, and other notes.
Strong and Lasting Recovery Depends on Successful Financial Reforms
Dismissing calls to weaken or reconsider global financial reforms in the face of short-term setbacks in global recovery, Jaime Caruana, General Manager, Bank for International Settlements, argues that it is more important than ever to continue reforms and see through what has already begun. Caruana lays out in a recent address before the 2012 ADB Financial Sector Forum four principles he feels should guide these ongoing reform efforts.
Italian Regulator Extends Financial Sector Short Selling Ban
In light of current conditions in the financial markets, CONSOB, the Italian banking and securities regulatory body, has extended its ban on short selling of financial sector stocks. Initially adopted on August 12, 2011 and subsequently extended until January 15, 2012, the ban has been further extended to February 24, 2012.
NYSE Further Restricts Broker Discretionary Voting
Citing “recent congressional and public policy trends disfavoring broker voting of uninstructed shares,” the NYSE has severely limited broker discretionary voting of uninstructed shares with regard to corporate governance proposals. Effective January 25, 2012, matters which would have previously been designated “Broker May Vote” will instead be designated “Broker May Not Vote.”
K&L Gates’ Global Government Solutions 2012 Outlook
K&L Gates’ 2012 Annual Outlook provides a valuable collection of articles that address important industry and regulatory trends and their correlation with government and political developments. This edition highlights regulatory issues in European Union countries, and also covers diverse topics such as: systemic financial risk regulation, anti-corruption and white-collar enforcement initiatives, tax policies, competition and antitrust law matters, intellectual property and international trade developments, energy and climate change, and health care and food safety laws.