The Basel Committee on Banking Supervision will set an aggregate floor on banks' internal regulatory capital models, instead of individual floors for certain risks, Secretary General William Coen says. This decision aims to allow banks more flexibility in modeling risks for each portfolio, although the final floor calibration has yet to be agreed and might be a source of contention.
The Federal Open Market Committee has outlined a plan to reduce the Federal Reserve's $4.5 trillion balance sheet, including gradual tapering of mortgage-backed securities. JPMorgan Chase economist Michael Feroli says the process could start as early as September.
Labor Secretary R. Alexander Acosta cited the Administrative Procedure Act, which says that changes must be driven by new information, when he announced that the fiduciary rule would take effect June 9. "[T]he worry is that another delay without new information could invite lawsuits claiming that the agency is acting arbitrarily and thwart revisions," according to this opinion piece.
Wells Fargo Advisors is increasing spending on signing bonuses to attract veteran brokers, while UBS, Merrill Lynch and Morgan Stanley are cutting recruitment budgets. Wells Fargo's adviser head count dropped 3% in the first quarter.
Social Security faces an increasing burden as the baby boom generation enters retirement, prompting the Center for Retirement Research at Boston College to explore ways the program could bolster its funds, other than by cutting benefits or raising taxes. Researchers say that although investing in equities as well as bonds carries a degree of risk, it could improve the health of the trust fund.
BlackRock is using algorithms to maximize the effectiveness of its advertising campaigns, determining which of its exchange-traded funds to advertise based on sentiment analysis of social media messages. One hurdle the strategy presents is balancing targeted advertising with client privacy.