New rules aimed at making the world safer from blowups in the $693 trillion derivatives market are poised to drive up costs so much for retirement funds and other users that bankers say they do just the opposite.
The world’s largest banks and investment firms should undergo quarterly stress tests to identify risks that could sink the financial system, according to a proposal by Stanford University finance professor Darrell Duffie .
The Federal Reserve Bank of New York said risks of rapid asset sales in the repurchase agreement market aren’t being adequately curbed, and regulators may need to step in to shore up such wholesale funding.
Top researchers at the Stanford University Graduate School of Business are taking diametrically opposing views on the Volcker rule, one of the most important issues in financial reform. The sharp distinctions can be seen in their public comments to U.S. bank regulators writing the rule, the part of the Dodd-Frank law that restricts proprietary trading by very large banks.
A Stanford University professor and student are seeking to fix a flaw in credit-default swap contracts that threatens to leave buyers with only part of their losses covered from a sovereign debt restructuring.
Markit Group Ltd., the data provider controlled by Wall Street firms including JPMorgan Chase & Co. and Bank of America Corp., probably won’t face U.S. sanctions for impeding competition in the $22 trillion credit-derivatives market, according to two people with direct knowledge of the four-year investigation.
Regulators rightly want to remedy a serious flaw in the financial system: The complexity of bank capital requirements has made them vulnerable to manipulation. In the rush to embrace simplicity, however, policy makers could inadvertently make safe investments unattractive for banks.