AmericasRSS

BIS blames hedge funds for worsening repo market volatility

The Bank for International Settlements says the actions of leveraged hedge funds exacerbated volatility in the US repo markets.

Bank of servers

US Congressional committee warned about cloud risks to banks

The rapid move by banks into the cloud has raised concerns with a US congressional committee where a hearing revealed the benefits and dangers of this trend

While Fed gives US banks thumbs up, OMFIF bemoans lack of detail

In its supervision and regulation report, the US Federal Reserve Board said US banks remain strong and well positioned for any downturn, though one think-tank thought the central bank did not dig deep enough into potential problem areas. 

BPI sees likelihood of more repo market volatility at year-end

Despite the US Federal Reserve Board’s actions to stabilise the repo markets, rates are likely to spike again at year end due to the global systemically important bank (G-SIB) capital surcharge, said the Bank Policy Institute (BPI)

CFTC chair advocates principles-based approach

In many circumstances, principles-based regulation can be more effective for overseeing financial services in a technological environment than highly prescriptive rules, wrote Heath Tarbert, the chairman and CEO of the US Commodity Futures Trading Commission (CFTC). 

US prudential agencies formally adopt SA-CCR for measuring counterparty risk

Large, internationally-active banks should replace the current exposure methodology with the standardised approach for measuring counterparty credit risk (SA-CCR), which smaller banks can voluntarily adopt, three federal agencies said in a statement.

Fed proposes extending go live date for credit limit rules for foreign banks

The Federal Reserve Board proposes extending by 18 months the initial compliance dates for foreign banks to come under its single-counterparty credit limit rule.

Agencies finalise supplementary leverage ratio measure

US federal prudential agencies have signed-off on changes to the supplementary leverage ratio as required by the Economic Growth, Regulatory Relief, and Consumer Protection act.

FASB signs-off on Libor transition guidance

An accounting standards update (ASU) that provides temporary, optional guidance to ease the potential accounting burden of switching interest rate benchmarks has been approved by the Financial Accounting Standards Board (FASB).

Five agencies finalise changes to the Volcker rule

Changes to the Volcker rule, which is designed to stop banks engaging in certain types of proprietary trading, have been finalised by the five regulatory agencies responsible for its oversight.