SIFMA: News on the capital markets, securities and financial industry

08/11/2011 | SIFMA

  Washington Roundup 
Source: CNBC
  • Mary Schapiro, chairman of the Securities and Exchange Commission, said the agency will propose requirements for money market funds. For example, the SEC is considering a plan to require the funds to hold capital buffers to support them in crises. "I believe additional steps should be taken to address the structural features that make money market funds vulnerable to runs," Shapiro said at SIFMA's annual meeting.The Wall Street Journal (tiered subscription model)(11/8), Securities Technology Monitor(11/7),, InvestmentNews(free registration) (11/7), CNBC(11/7)
Source: CFTC
  • Gary Gensler, chairman of the Commodity Futures Trading Commission, explained at the SIFMA Annual Meeting that he recused himself from the investigation into the collapse of MF Global because he didn't want his participation "to in any way be a distraction." Gensler and former MF Global CEO Jon Corzine worked together at Goldman Sachs. "I chose to not participate in these potential or possible enforcement matters," Gensler said. "We have excellent career staff" who can deal with the investigation.Securities Technology Monitor(11/7), The New York Times (tiered subscription model)/DealBook blog(11/7), CNBC(11/7)

Fewer banks relaxed business-loan standards, Fed says
A survey by the Federal Reserve shows that fewer banks relaxed lending standards for businesses in the third quarter. "Overall, the October survey suggests bank lending activity continues to improve gradually ... but the rate of improvement has slowed," said Michael Gapen, an economist at Barclays Capital. Bloomberg(11/7), The Wall Street Journal (tiered subscription model)(11/7), MarketWatch(11/7)

Brokerages oppose outsourcing routine compliance exams
The brokerage industry is raising concerns about allowing advisory firms to outsource compliance exams to third parties rather than self-regulatory organizations or government auditors. "Using accounting or auditing firms to do the job simply would not offer the level of protection and oversight that retail investors deserve under a new uniform [fiduciary] standard," said Ira Hammerman, general counsel at SIFMA. InvestmentNews (free registration)(11/6)

Fed says banks won't be expected to adopt Basel III early
The Federal Reserve is drafting final Basel 2.5 and Basel III rules. Daniel Tarullo, a member of the central bank's board of governors, said U.S. financial institutions are unlikely to be required to adopt the rules early. "While the Federal Reserve intends to ensure that firms are on a steady path to full Basel III compliance, we do not intend to require firms to raise external capital or reduce their risk-weighted assets in order to meet any target earlier than at the time specified in the Basel III transition schedule," Tarullo said. Global Financial Strategy(11/7)