Deutsche Bank AG, its New York branch, and other U.S. affiliates have been fined $186 million by the Board of Governors of the Federal Reserve System because the German banking giant moved too slowly to resolve allegedly inadequate sanctions compliance and anti-money laundering (AML) controls, officials say. The Fed’s fine, consent order, and written agreement… Read More >>
Federal Reserve Wants New Framework for Big Banks
The Federal Reserve Board is proposing a new regulatory framework that it says will “more closely match the regulations for large banking organizations with their risk profiles.” The new proposed framework would “reduce compliance requirements for firms with less risk while maintaining more stringent requirements for firms with more risk,” according to a Fed statement…. Read More >>
The Fed Wants Faster Interbank Settlements
The usually aloof and austere Federal Reserve Board is hinting that it may want to enter the 21st Century. A little out of the blue, the Fed has announced that it wants public input about the creation of a real-time interbank settlement system for faster payments that could affect a wide variety of financial transactions…. Read More >>
Regulators Extend Comment Deadline for New Volcker Rule
Five Regulators Move Volcker Rule Deadline to Oct. 17 Securities industry participants will get more time to weigh in on the very controversial Dodd-Frank Era “Volcker Rule,” which in its initial form prohibits proprietary trading and banks from owning hedge funds or private equity funds. Five federal financial regulatory agencies have agreed to extend until… Read More >>
BNPP Pays $246M Fine, Agrees to FX Reforms
The Federal Reserve Board reports levying a $246 million-plus fine against Paris-based BNP Paribas S.A. and “certain of its U.S. subsidiaries” for what it calls “unsafe and unsound practices” in the foreign exchange (FX) markets. Fed officials allege that there were oversight deficiencies via the “the world’s seventh-largest financial services company by revenue [$126.2 billion].”… Read More >>
SEC Fills Deputy Director Post for Corporation Finance
SEC Hires from Shearman & Sterling LLP SEC officials report that Robert Evans III has been named deputy director in the division of corporation finance, where he will join Shelley Parratt, also a deputy director, as a senior advisor to the division’s director, William H. Hinman. Most recently, Evans, who, according to the commission, has… Read More >>
Fed Penalizes Deutsche Bank $41M and Demands Ops Overhaul
The Federal Reserve Board has hit the U.S. operations of Deutsche Bank AG with a $41 million penalty and a cease and desist order, alleging anti-money laundering (AML) deficiencies that bank officials are pledging to fix. Specifically, the Fed is focusing its efforts on the German bank’s holding company, DB USA Corp. (DB USA), which… Read More >>
LSEG & Boat to Launch Combined Reporting Services
TRADEcho to Hit Early Next Year The London Stock Exchange Group (LSEG) and Boat Services Ltd. will be offering TRADEcho, a combination of the two vendors’ existing and complimentary trade reporting services, officials say. TRADEcho is slated to be available by the first quarter of 2017 and will offer a single trade reporting venue and… Read More >>
The Fed’s Quiet Move to Avoid Widespread Panic
Amid all the endless claptrap about interest rates, the Federal Reserve Board quietly this week proposed a rule that might help global markets sidestep widespread panic if a very large institution goes bankrupt and has lots of bilateral derivatives contracts on its books. The proposed rule would delay the immediate cancellation of qualified financial contracts… Read More >>
Fed Wants New Credit Limits on Top Tier Firms
Global systemically important banks (G-SIBs), of the kind whose imprudent derivatives loan policies shook the global economy, will have their credit exposure restricted under a proposed new Federal Reserve Board single-counterparty-credit-limit rule. “In the financial crisis, we learned that the largest and most complex banks and financial institutions lent or promised to pay large amounts… Read More >>
