The Treasury Department has called on the Financial Stability Oversight Council to limit use of the systemically important financial institution designation and to target firms based on financial practices, rather than size. "Our recommendations include enhancing FSOC's analytic process, implementing cost-benefit analysis and increasing transparency," said Treasury Secretary Steven Mnuchin.
An effort by German Chancellor Angela Merkel to put together a coalition government ended abruptly when business-friendly Free Democrats pulled out of the talks, raising questions about whether Merkel will be able to serve a fourth term. Merkel said she will talk with President Frank-Walter Steinmeier about what to do next.
President Donald Trump has pushed for more major infrastructure projects, and he has tried to streamline the federal approval process. Delays in beginning a project cost trillions of dollars in economic activity, but experts say funding issues and local regulations often are major factors as well.
As the world transitions from an extraordinary situation in which real interest rates have been negative, opportunities will be created, says Jacob Frenkel, chairman of JPMorgan Chase International. He says the decline in money supply ensuing from normalisation should not be seen as a harbinger of what's likely to happen in the stock market, because the market more fundamentally reflects hopes for the future.
Federal Reserve Governor Jerome Powell met with Treasury Secretary Steven Mnuchin, Senate banking committee Chairman Mike Crapo and bank executives in the months leading up to his nomination as chairman of the central bank, according to Powell's calendar. The executives included Wells Fargo CEO Timothy Sloan, JPMorgan Chase CEO Jamie Dimon, Goldman Sachs President Harvey Schwartz and Deutsche Bank CEO John Cryan.
Visa has partnered with financial institutions such as Commerce Bank in the US, Shinhan Bank in South Korea, Union Bank of the Philippines and United Overseas Bank in Singapore in preparation for Visa B2B Connect's commercial launch next year. The platform is meant to provide banks with a fast, safe method of completing international business-to-business payments.
The European Banking Authority made public the final version of its methodology for next year's EU bank stress tests. The testing will continue to focus on key risks that influence liquidity, but this time will incorporate International Financial Reporting Standard 9.
New requirements are pushing more products into the cleared space, but Bruce Kellaway of LCH cautions that clearing is not always the solution. "Regulation is all about making the industry safer, but in some cases clearing won't always be the answer," Kellaway said.
The European Commission published its proposed list of derivatives subject to trading obligations under upcoming market rules. "[T]his regulation should enter into force as a matter of urgency," according to the commission.
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