Moody’s says payment holidays cloud bank credit quality assessments

Large volumes of deferrals on debt repayments granted by banks to borrowers is masking the true credit quality of these institutions, Moody’s Investors Service said in a report, warning that it expects delinquencies to increase rapidly as these measures and government support schemes wind down. 

SEC sets up emerging risks detection unit

The US Securities and Exchange Commission (SEC) has put together a new unit called the Event and Emerging Risks Examination Team (EERT) tasked with detecting emerging threats. 

CFTC votes to reduce its international oversight

Commissioners at the US Commodity Futures Trading Commission (CFTC) voted on July 22 to reduce oversight of derivatives trades to mostly US entities and passed a second vote on capital requirements for traders involved in bilateral swaps transactions. 

SEC allows companies to raise capital on NYSE through direct listings

Companies will be allowed to raise capital through direct listings on the New York Stock Exchange (NYSE) following a ruling by the US Securities and Exchange Commission (SEC).

US Fereral Reserve

US Fed stress tests criticised for being confusing and inadequate

In recent years, stress tests by the US Federal Reserve have been relatively incident free, but this year’s exercise has run into sharp criticism in some quarters including from a former Fed member 

Josh Galper

Covid-19 serves as catalyst for US deregulation of financial services

The economically devastating impact of the Covid-19 pandemic seems to have acted as a catalyst for US regulators to loosen prudential rules further and faster ahead of the presidential election in November.

Banks score significant victory with relaxation of Volcker Rule

Five US regulators have loosened the Volcker Rule, making it easier for banks to make bigger investments in so-called ‘covered funds’, such as venture capital funds, and have relaxed capital requirements on intra-company derivatives trades. 

FDIC ponders dropping quarterly reporting by banks

Banks could be relieved of having to make long-standing quarterly regulatory reports to the Federal Deposit Insurance Corp (FDIC) in favour of a more technology-driven approach.

Banks told to incorporate Covid-19 ‘lessons’ in their resolution planning

The 2021 resolution plans filed by the eight largest and most complex US banks will have to detail how they integrated lessons learned from the coronavirus pandemic on top of the usual core elements, two prudential regulators have said. 

New York Fed audit finds it is compliant with IOSCO benchmark principles

The interest rate benchmarks administered by the Federal Reserve Bank of New York were found to be in compliance with the principles set out by the International Organization of Securities Commissions (IOSCO) following an annual audit.