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- SIFMA explains issues with mortgage seizure plan
San Bernardino County in California and two of its biggest cities are working on a plan to use eminent domain to seize mortgages of certain underwater borrowers in an effort to help the homeowners. However, SIFMA is warning that doing so would raise problems in the "to-be-announced" mortgage-bond market. Allowing the mortgages to be seized would make them significantly different from other loans in the TBA market. "We have an obligation to address that, because they would no longer conform with the other mortgages," said SIFMA's Kenneth E. Bentsen Jr. "This creates a material event and we have to make the necessary arrangements." Learn more about letters sent by SIFMA, as part of a coalition, to the three California municipalities. The Wall Street Journal
(7/12)      
- Schweikert commentary: Mortgage seizure plan is bad idea
Rep. David Schweikert, R-Ariz., argues that the use of eminent domain to seize home loans in an effort to help underwater borrowers is the wrong way forward. "Putting aside the unconscionable idea of government seizing investments from free market participants, what is being overlooked here is the effect that such a bold move will have on loan origination and interest rates," Schweikert writes. CNBC/Guest Blog
(7/12)
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- Geithner called for changes to Libor in 2008 memo to King
In 2008, Timothy Geithner, then president of the Federal Reserve Bank of New York, sent a memo to Bank of England Governor Mervyn King suggesting several changes to the London Interbank Offered Rate. The changes aimed to improve the rate's integrity and credibility. "We would welcome a chance to discuss these and would be grateful if you would give us some sense of what changes are possible," Geithner wrote. The Wall Street Journal
(7/12), The Washington Post
(7/12)
- Analysts: Libor woes might cost RBS and Deutsche Bank the most
Among 16 major banks accused of manipulating the London Interbank Offered Rate, Royal Bank of Scotland and Deutsche Bank are most at risk of litigation costs, Morgan Stanley analysts said. They estimated that each will face slightly more than $1 billion in legal expenses during the next two years. Bloomberg
(7/12), Financial Times (tiered subscription model)
(7/12)
- JPMorgan poised to reveal more details about trading loss
Investors are expected to scrutinize JPMorgan's risk measures when the bank reveals more about its large trading loss. The banking giant is poised to announce second-quarter earnings today. One analyst has predicted that JPMorgan's trading loss could hit $6.5 billion. “I think the important thing for investors is going to be how much have they actually closed out of the trade and what’s the forward look, because that will really set the tone for what you think the earnings will be going forward,” said Betsy Graseck, a managing director at Morgan Stanley. The Wall Street Journal
(7/12), CNBC/Stock Blog
(7/12)
| Washington Roundup | | |
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- Sen. Moran calls for CFTC's Gensler to resign
Sen. Jerry Moran, R-Kan., says Gary Gensler, chairman of the Commodity Futures Trading Commission, should resign following allegations of fraud at Peregrine Financial Group. "During just the past few months, CFTC Chairman Gary Gensler has stood over two unique and unprecedented failures whose damage to market integrity will be hard to overcome," Moran said in a statement. "The ultimate responsibility to ensure market confidence rests at his door and for that reason, I believe it is time for Mr. Gensler to resign." The Hill/On the Money blog
(7/12)
- Do gains outweigh risks of quantitative easing?
With central banks' interest rates at, near or below zero, quantitative easing is the method of choice for addressing economic ills, according to The Economist. Although experience suggests that QE can be helpful and effective, the question remains whether benefits outweigh risks. The Economist
(7/14)
- Investigation and action are expected as scandals pile up
The collapse of once high-flying Peregrine Financial Group perhaps shouldn't come as a surprise after the demise of MF Global Holdings and the investigation and disclosure that followed, according to The Economist. More investigation and stiff legislation are likely as the London Interbank Offered Rate scandal and JPMorgan Chase's trading loss heighten suspicion. The Economist
(7/14)
| SIFMA News | | |
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- Check out the handy SIFMA Dashboard
The weekly SIFMA Dashboard is your one-stop resource for global and national financial regulatory reform updates, including news from SIFMA and more -- all the facts you need to stay apprised of market and regulatory events affecting your business.
- Some support to help you navigate the financial markets
To promote transparency and liquidity in the financial markets, SIFMA encourages the use of standard forms and documentation when possible. To help make sure you have the resources and support you need to navigate the financial industry marketplace, we have several forms and documentation you can access on various topics, including Agency Lending Disclosure, Auction Rate Securities, Corporate Credit and Money Markets, Government Securities, Prime Brokerage and more.
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