Most Clicked GFMA SmartBrief Stories

1. Major banks plead guilty, face fines for FX manipulation

GFMA SmartBrief | May 21, 2015

US and European authorities have settled with five global banks regarding manipulation of foreign exchange rates. The banks have agreed to plead guilty to criminal charges and pay about $5.7 billion in fines. Reuters (20 May.) Los Angeles Times (tiered subscription model) (20 May.) The Wall Street Journal (tiered subscription model) (20 May.)

2. BoE to put HFT under spotlight

GFMA SmartBrief | May 18, 2015

The Prudential Regulation Authority at the Bank of England says it will test high-frequency traders to determine whether they maintain adequate controls on algorithmic trading. Financial Times (tiered subscription model) (15 May.)

3. Fitch lowers ratings of 20-plus European banks

GFMA SmartBrief | May 20, 2015

The governments of Germany, Ireland, Italy, Portugal, Spain and the UK are unlikely to help in a crisis, Fitch Ratings says, as it downgrades more than 20 banks. Regulatory, legislative and policy moves "have substantially reduced the likelihood of sovereign support" for banks in the EU, Switzerland and the US, Fitch says. Policymakers are looking to investors, not governments, to wind down failing banks. Bloomberg (19 May.)

4. EU securitisation firms question regulatory proposals

GFMA SmartBrief | May 18, 2015

Representatives of Europe's securitisation industry are unhappy about proposed requirements for due diligence and disclosure. "We are still seen by some as the ugly stepchild of the family," said Richard Hopkin, AFME's head of fixed income. The rules could send a "negative signal to the market" and discourage issuers from doing securitisation deals, he said. Financial Times (tiered subscription model) (17 May.)

5. Financial firms support efforts to prevent asset bubbles

GFMA SmartBrief | May 19, 2015

Large financial companies are backing central bank policies to prevent overinflated asset prices. BlackRock, HSBC Holdings, Assicurazioni Generali and others say in a paper from the World Economic Forum that they support macroprudential policy. The Independent (London) (tiered subscription model) (18 May.) Financial Times (tiered subscription model) (18 May.) Reuters (18 May.)

6. EU relationship uncertainty prods banks to weigh UK exit

GFMA SmartBrief | May 20, 2015

Financial institutions are reconsidering operation in the UK as the government reworks the country's involvement in the EU ahead of a 2017 referendum on whether the exit the bloc. Deutsche Bank might reduce its UK staff of nearly 9,000, and other banks might delay investment, an industry group says. Reuters (19 May.)

7. EBA takes aim at shadow banking

GFMA SmartBrief | May 19, 2015

The European Banking Authority is defending efforts to rein in mainstream banking's ties to shadow banking, saying it is trying to allow for funding for the economy while improving confidence in the financial system. Guidelines due to go into effect early next year will ensure banks have capital cushions to weather issues stemming from shadow banking, Regulation Director Isabelle Vaillant says. MLex (subscription required) (18 May.) Reuters (18 May.)

8. Vanishing collateral threatens solvency of Greek banks

GFMA SmartBrief | May 18, 2015

Collateral at the Bank of Greece used by lenders for emergency liquidity is being tapped out. That could make banks insolvent, economists say. "Pressures on central government cash flow, pressures on the banking system, and the political timetable are all converging on late May-early June," according to a client note by JPMorgan Chase analysts Malcolm Barr and David Mackie. Bloomberg (17 May.)

9. Global banks aim for strength in asset management

GFMA SmartBrief | May 18, 2015

Competition is rising among global banks seeking to boost asset-management units, increase growth and obtain merger opportunities. Asset owners are less reluctant to place money with investment-bank-owned managers seeking "outcomes that require more capital-markets talent", such as hedging and risk management, said Ben Phillips, a partner at Casey, Quirk & Associates. Pensions & Investments (free access for SmartBrief readers) (18 May.)

10. Massad: US "educating" EU about better clearing rules

GFMA SmartBrief | May 15, 2015

Commodity Futures Trading Commission Chairman Timothy Massad says the US is "educating" the EU about superiority of the former's derivatives-clearing rules, as the two sides negotiate harmonisation. Financial Times (tiered subscription model) (14 May.)

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