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CFTC to Hold a Commission OPEN Meeting on December 13 to consider Swap and Derivatives Rules.

CFTC to Hold a Commission OPEN Meeting on December 13 to consider Swap and Derivatives Rules.

Commodity Futures Trading Commission Chairman Rostin Behnam today announced the Commission will hold an open meeting on Wednesday, December 13 at 9:30 a.m. (EST) at the CFTC’s Washington, D.C. headquarters. Members of the public are free to attend the meeting in person, listen by phone, or

Office of Information and Regulatory Affairs released the Fall 2023 Unified Agenda

Office of Information and Regulatory Affairs released the Fall 2023 Unified Agenda of Regulatory and Deregulatory Actions for the Securities and Exchange Commission.

Source: https://www.reginfo.gov/public/do/eAgendaMain?operation=OPERATION_GET_AGENCY_RULE_LIST¤tPub=true&agencyCode=&showStage=active&agencyCd=3235&csrf_token=1BF2FDB78A7198C9E58764AA2702EF22D6B9C0FBAE9BBC1A5D91D33FD4E0D24F55FF869A4CE1C0345D7FE275ABE899F2B7DB AgencyAgenda Stage of RulemakingTitleRINSECProposed Rule StageEDGAR Filer Access and Account Management3235-AM58SECProposed Rule StageIncentive-Based Compensation Arrangements3235-AL06SECProposed Rule StageCorporate Board Diversity

U.S. Senator Sherrod Brown

U.S. Senator Sherrod Brown to Banks: Higher Capital Requirements Protect Consumers and Taxpayers From Wall Street's Risky Bets.

Source: https://www.banking.senate.gov/newsroom/majority/brown-to-banks-higher-capital-requirements-protect-consumers-and-taxpayers-from-wall-streets-risky-bets Sen. Brown’s remarks, as prepared for delivery follow: The eight bank CEOs appearing before us today lead the biggest global, systemically important banks in the United States. Your banks hold nearly $15 trillion in assets, manage trillions of dollars of

Final Rule: Prohibition Against Conflicts of Interest in Certain Securitizations

Prohibition Against Conflicts of Interest in Certain Securitizations prohibiting a sponsor of an asset-backed security (including a synthetic asset-backed security) that would result in conflicts of interest effective February 5, 2024.

Background: * The SEC proposed new Rule 192 to implement the prohibition in Securities Act Section 27B1 (“Section 27B”), which was added by Section 621 of the Dodd-Frank Act. * Section 27B(a) provides that an underwriter, placement agent, initial purchaser, or sponsor, or affiliates or subsidiaries of any such entity, of

CME/FICC Cross Margining Enhancements Implementation Notice

CME/FICC Cross Margining Enhancements Implementation effective 1/22/24. In 2020, CME exposures were large—likely in excess of $100bn notional. Savings with Enhanced Cross-Margining estimated at ~80% to protect the clearinghouses...

Background for this post: * https://www.cftc.gov/media/9591/gmac_FICC_CME110623/download * https://www.dtcc.com/-/media/Files/Downloads/legal/rule-filings/2023/FICC/SR-FICC-2023-010.pdf * https://www.dtcc.com/~/media/Files/Downloads/legal/rules/ficc_cme_crossmargin_agreement.pdf * https://www.dtcc.com/news/2023/july/18/

Fed Vice Chair for Supervision Michael S. Barr

"the discount window provides ready access to funding to help banks manage liquidity risks in normal conditions, it is also incredibly important that it be available to banks dealing with idiosyncratic or market-wide stress events."

Highlights: * "Credit Suisse came under renewed pressure in March 2023 after a long period of liquidity pressures that had been acute since the fall of 2022. Of course, Credit Suisse had been a troubled bank for some time, with doubts about its future viability after the Archegos and Greensill scandals

Federal Reserve Urged to Strengthen Guardrails for global systemically important banking organizations (GSIBs)

Senators urge Fed to strengthen guardrails on biggest banks: "These banks should be using more shareholders’ equity to fund their risky activities, so that they – not U.S. taxpayers – are on the hook if those bets do not pay off."

We strongly support the Board of Governors of the Federal Reserve System’s effort to make the U.S. banking system more resilient by strengthening the guardrails at global systemically important banking organizations (GSIBs). As we saw in the 2008 financial crisis, global megabanks took on layers of risky financial

S&P Global Market Intelligence: UBS is least efficient bank in Europe in Q3 2023.

S&P Global Market Intelligence: UBS is least efficient bank in Europe in Q3 2023.

Source: https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/ubs-is-least-efficient-bank-in-europe-in-q3-2023-79149692 The Swiss bank recorded a third-quarter cost-to-income ratio of 99.56%, representing a 10.61-percentage-point increase from the previous quarter. UBS posted a third-quarter net loss attributable to shareholders of $785 million, compared to a $1.73 billion profit booked

(PCAOB) levied the highest civil money penalty imposed against a China-based firm

Without firms admitting or denying the findings, Public Company Accounting Oversight Board (PCAOB) levied the highest civil money penalty imposed against a China-based firm ($4 million) for auditors falsifying financial reports.

Wut Mean?: * The Public Company Accounting Oversight Board (PCAOB) today announced three settled disciplinary orders sanctioning three China-based firms and four individuals for violations of the U.S. securities laws and PCAOB rules and standards. * These are the first enforcement settlements with mainland Chinese and Hong Kong firms since the

Concern over the rapid growth of the private credit market.

"Banks have engaged in lending to private credit funds, are partnering with funds to actively arrange private credit deals, and have begun transferring risk to private credit funds through exotic financial instruments."

Wut Mean?: * Today, U.S. Senators Sherrod Brown (D-OH), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, and Jack Reed (D-RI), a senior member of the Banking and Housing Committee, urged financial regulators to assess the potential risks posed by the growing private credit market. * In a

Summary of Commentary on Current Economic Conditions

Fed Beige Book: "some banks noted a slight uptick in consumer delinquencies." "The economic outlook for the next six to twelve months diminished over the reporting period."

Overall Economic Activity: On balance, economic activity slowed since the previous report, with four Districts reporting modest growth, two indicating conditions were flat to slightly down, and six noting slight declines in activity. Retail sales, including autos, remained mixed; sales of discretionary items and durable goods, like furniture and appliances,

FDIC-Insured Institutions Q3 2023: Unrealized losses on securities totaled $683.9 billion in the third quarter, up $125.5 billion (22.5 percent) from the Q2 2023. Unrealized losses on held-to-maturity securities totaled $390.5 billion

FDIC-Insured Institutions Q3 2023: Unrealized losses on securities totaled $683.9 billion in the third quarter, up $125.5 billion (22.5 percent) from the Q2 2023. Unrealized losses on held-to-maturity securities totaled $390.5 billion

Highlights: * Net Income Decreased From the Prior Quarter, Driven By Lower Noninterest Income and Higher Realized Losses on Securities * The Net Interest Margin Increased From the Prior Quarter to 3.30 Percent * Unrealized Losses on Securities Increased From the Prior Quarter * Community Banks Reported Lower Net Income From the Prior

Financial Stability Board releases report

Financial Stability Board releases report on Financial Stability Implications of Multifunction Crypto-asset Intermediaries. Tokens (remember all those GME crypto tokens?) called out as interconnected-contagion risk!

Wut Mean?: * MCIs generate revenue through proprietary trading and investments, including in self-issued crypto-assets. * They often operate from offshore financial centers, are privately owned, and lack transparency in corporate structure, financial accounts, and product/service descriptions. * In some cases, this opacity seems intentional, hindering understanding of their activities and risks.

FDIC Systemic Resolution Advisory Committee to Meet Next Week.

FDIC Systemic Resolution Advisory Committee to Meet Next Week. The SRAC provides advice and recommendations to the FDIC on a broad range of policy issues regarding the resolution of systemically important financial institutions.

* The Federal Deposit Insurance Corporation’s (FDIC’s) Systemic Resolution Advisory Committee (SRAC) will meet on Tuesday, December 5, 2023, at 9:00 am ET. * The SRAC provides advice and recommendations to the FDIC on a broad range of policy issues regarding the resolution of systemically important financial institutions. * The