U.S. equity markets should limit price moves before resorting to the current technique of halting a stock when it fluctuates a certain amount, according to a report last week from advisers to regulators.
By Edward Robinson July, 2010 (Bloomberg Markets) -- Exchange-traded funds--many stuffed with exotic derivatives--are shaking up the mutual fundindustry. Regulators want to make sure they don’t become the next financial time bomb. The skunk works at IShares’ headquarters in San Francisco is buzzing. Researchers in the development lab pore over data flashing across computer screens while colleagues refill their mugs at the coffee bar and huddle in conference rooms illuminated by translucent blue partitions. These brainiacs, who create the exchange-traded funds that have made the BlackRock Inc. unit the kingpin of the global ETF market, took a radical departure in November from the index trackers IShares has churned out for a decade. They released a hedge fund in a box. The IShares Diversified Alternatives Trust ETF packs the complex bets favored by hedge fund managers into one security.
The skunk works at IShares’ headquarters in San Francisco is buzzing. Researchers in the development lab pore over data flashing across computer screens while colleagues refill their mugs at the coffee bar and huddle in conference rooms illuminated by translucent blue partitions.
Deutsche Bank AG ’s investment-bank unit will pay $7.5 million to settle claims that it misled investors by understating delinquency rates on subprime mortgage-backed securities it sold in 2006, a U.S. brokerage regulator said.
Royal Bank of Canada’s RBC Wealth Management unit will pay $690,000 to resolve a brokerage regulator’s claims that a U.S. unit sold unsuitable financial products to elderly clients and others with modest net worth.
Germany must face a lawsuit over bonds that defaulted under Adolf Hitler in the 1930s, a U.S. appeals court ruled, saying the nation isn’t immune from the claims and that American courts have jurisdiction to decide whether the bonds are enforceable.
Bank of America Corp. will pay more than $2.5 million to settle a regulator’s claims that its Merrill Lynch unit failed to offer customers required discounts on purchases of pooled assets known as unit investment trusts.