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 .
JPMorgan Chase & Co. and Bank of America Corp. are helping clients find an extra $2.6 trillion to back derivatives trades amid signs that a shortage of quality collateral will erode efforts to safeguard the financial system.
More than half of the derivatives- trading business of Goldman Sachs Group Inc., Morgan Stanley and three other large banks could fall largely outside the Dodd- Frank Act if they succeed in lobbying regulators to exempt their overseas operations, government records show.
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.
Between debating the location of a proposed dog park and discussing taxi permit fees one night last month, the city council in Oakland, California, turned to severing ties with Goldman Sachs Group Inc.
On a good day, 27-year-old Bobby Timberlake at CME Group Inc. in Chicago rounds up $2.5 billion from the world’s biggest traders and banks such as JPMorgan Chase & Co. to cover their losses in the $639 trillion derivatives markets.
Gary Gensler, the former Goldman Sachs Group Inc. partner now heading the Commodity Futures Trading Commission, has never been a dawdler. So it was unnerving to see the CFTC miss a major deadline for its biggest project: redefining derivatives markets to prevent a repeat of 2008-style mayhem.