SIFMA SmartBrief

Reading this on a mobile device? Try our optimized mobile version here: http://r.smartbrief.com/resp/eepsCfbwoceXziuNZAcO

January 8, 2013

News on the capital markets, securities and financial industry

Morning Bell

Basel Committee's revised LCR prompts relief and concerns
The Basel Committee on Banking Supervision's decision to give global banks an additional four years to meet liquidity requirements was aimed at ensuring that the change wouldn't discourage lending to the real economy. Some banks have already benefited from the revised liquidity coverage ratio, with their share prices increasing. GFMA welcomed the Basel panel's decision to allow mortgage-backed securities and equities to be included in banks' liquidity buffers. However, the move could prove costly for financial institutions, analysts say. Read GFMA's comments on the change. Financial Times (tiered subscription model) (1/7), Reuters (1/7)

Basel panel's allowance of MBS in buffers faces scrutiny
The Basel Committee on Banking Supervision's decision to let banks include equities and residential mortgage-backed securities in Basel III liquidity buffers is gaining plaudits and criticism. Bankers welcome the revision, but experts say it is unlikely to significantly lift a slack securitization market. The change also presents challenges for regulators, experts say. Risk.net (subscription required) (1/7), Financial Times (tiered subscription model) (1/7), Financial News Online (U.K.) (subscription required) (1/7)

Industry News

Banks settle mortgage-related legal disputes
Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and other major banks agreed to pay a total of $20 billion to settle two legal disputes related to the mortgage crisis. BofA agreed to pay Fannie Mae $11.6 billion. In a separate dispute, 10 lenders agreed to pay more than $8.5 billion over foreclosure practices. The Washington Post/The Associated Press (1/7), Financial Times (tiered subscription model) (1/7), The Wall Street Journal (1/7)

TD Bank's Clark says no Canadian housing bust on horizon
Toronto-Dominion Bank CEO Ed Clark said that while housing has boomed in Canada due to low interest rates, the lack of subprime lending insulates the country from an American-style collapse. He believes that, though it may not be apparent yet, housing growth is already being reined in. Financial Post (Canada) (1/7)

CMBS' mid-2012 rally continues with great deals for borrowers
Three Wall Street dealers this week are expected to sell $600 million of commercial mortgage-backed securities based on an interest-only, 12-year loan. The transactions reflect the rally in the vehicles that began in mid-2012, which has set the pace for a robust start for issuance in 2013, marked by better terms for borrowers. The Wall Street Journal/Developments blog (1/7)

AIG reportedly considers $25B lawsuit against U.S.
The board of American International Group will consider whether to bring a $25 billion lawsuit against the U.S. government, according to court records. The lawsuit would argue that the terms of AIG's financial rescue were heavy-handed and deprived shareholders of tens of billions of dollars. The New York Times (tiered subscription model)/DealBook blog (1/7)

Washington Roundup

SEC and CFTC might ease margin requirements for CDSs
The Securities and Exchange Commission has issued a draft rule that would allow swaps traders to reduce collateral for credit default swaps via portfolio margining, and the Commodity Futures Trading Commission might follow suit. The SEC said the draft rule, which was issued for comment in December, could "alleviate excessive margin calls, improve cash flows and liquidity and reduce volatility." Bloomberg (1/8)

Former CFTC official Aronow is named SEC general counsel
Geoffrey Aronow, a former enforcement chief for the Commodity Futures Trading Commission, has been tapped as the lead lawyer for the Securities and Exchange Commission. Aronow, a partner at law firm Bingham McCutchen, also has been on disciplinary panels for the Financial Industry Regulatory Authority. Bloomberg (1/7), Reuters (1/7), The Wall Street Journal/Law Blog (1/7)

U.S. could default on debt as soon as Feb. 15, analysis shows
The U.S. government will run out of money to pay its bills sometime between Feb. 15 and March 1, according to a Bipartisan Policy Center analysis. On Dec. 31, the U.S. reached the debt limit established by law, but the Treasury Department says it is implementing "extraordinary measures" that could delay default for the first two months of 2013. The Washington Post (1/7), Forbes (1/7), The Hill/On The Money blog (1/7)

Asset/Wealth Management Report

Advisers breathe easier as estate-tax exemption is solidified
Financial advisers and clients can take time planning gifts to family and charitable causes after Congress made a $5.12 million estate-tax exemption permanent. The "fiscal cliff" compromise essentially preserved favorable treatment for estate and gift tax that has been in effect the past two years. InvestmentNews (free registration) (1/6)

SIFMA News

Download SIFMA's 2012 Year in Review
Check out the just-released SIFMA 2012 Year in Review. Our industry remains committed to restoring trust and confidence in the financial markets. SIFMA and our member firms have been supportive of rational regulatory reform from the start. This Year in Review explores the progress that has been made in the financial regulatory reform process to date; provides a sampling of the research and services we provide to inform that process; and highlights opportunities for members to be involved with their association. In the year to come, SIFMA will continue our hard work as a forum for industry leaders to help chart a path forward to ensure that the regulatory landscape provides a clear path to allowing financial institutions to be the conduits of economic growth and job creation. Find out more about our efforts in the 2012 Year in Review and also download our free 2013 desk calendar, highlighting the dates of important economic releases and SIFMA events. We hope you find these resources valuable and wish you the best in the new year.

SIFMA's 2013 Insurance- & Risk-Linked Securities Conference -- March 5-6 -- New York City
The program is now available for SIFMA's Insurance- & Risk-Linked Securities Conference, which will address the key issues and strategies for insurance- and risk-linked securities professionals for the coming year. Join your peers and industry experts as they discuss issuance perspectives from public entities, the evolving role of reinsurers in the ILS market, and more. Also, hear from guest speakers: Tim Marshall, meteorologist and principal engineer at Haag Engineering, and Professor S. Jay Olshansky, School of Public Health at the University of Illinois at Chicago, for their insights into this specialized market sector. Register now -- early-bird rates end Jan. 25!

SIFMA Resources

SmartQuote

It is wise to keep in mind that neither success nor failure is ever final."

--Roger Babson,
American entrepreneur and business theorist

Subscriber Tools

Print friendly format | Web version | Search past news | Archive | Privacy policy

Advertise

Sales Account Director: Abiy Bekele (919) 931-5915

Read more at SmartBrief.com
A powerful website for SmartBrief readers including:
Industry Home Readers' Choice Search Archive Get this RSS Feed Download a SmartBrief Mobile app today

SIFMA RSS Feeds


	Recent SIFMA SmartBrief Issues: Monday, January 07, 2013 Friday, January 04, 2013 Thursday, January 03, 2013 Wednesday, January 02, 2013 Monday, December 31, 2012			Lead Editor: Bridget Lux Mailing Address: SmartBrief, Inc.®, 555 11th ST NW, Suite 600, Washington, DC 20004