The European Commission says it will review rules on banks' holdings of government bonds "to ensure that banks' exposures to individual sovereigns' risk [are] sufficiently diversified". The commission wants to break a "doom loop" between states and banks that has been partially blamed for the eurozone debt crisis. "In the medium term, it may make sense to review the treatment of bank exposures to sovereign debt, for example by setting large exposure limits," according to a report by Eurogroup President Jeroen Dijsselbloem, European Commission President Jean-Claude Juncker and others.
The European Commission has proposed, despite German opposition, the European Deposit Insurance Scheme to guarantee bank deposits. The scheme would be phased in from 2017 to 2024. "Greater mutualisation of risk will only happen gradually over time and needs to be accompanied by measures to reduce risks so that there is less risk to share in the first place," EU Financial Services Commissioner Jonathan Hill said.
Bank of England Governor Mark Carney has told lawmakers that he expects low interest rates to continue "for some time". "The question in my mind is when is the appropriate time for interest rates to increase," he said.
The Commodity Futures Trading Commission is seeking feedback on proposed rules governing automated trading. The proposal includes "common sense risk controls that I believe recognize the benefits that automated trading has brought to the markets, while seeking to protect against the possibility of breakdown and disruption that can come with it," Chairman Timothy Massad said.
JPMorgan Chase on Monday notified several hundred thousand customers that they need to reconfirm their identities to get bank account access for services such as Intuit's QuickBooks and Quicken. Customers have until Feb. 15 to complete the reconfirmation process.
Google Compare for Mortgages, a mortgage-comparison website, is now available for California customers. Google plans to roll out the service for other states in the future and already offers it in the UK. LendingTree and Zillow are partners in the US offering.
Treasury Secretary Jack Lew advised President Barack Obama to veto any year-end spending bill that includes changes to the 2010 financial regulatory measure. Republican leaders are pushing for the systemically important financial institution threshold to be raised from $50 billion in assets to $500 billion. "The idea that something that amends Wall Street reform at the last minute on a must-pass bill is unacceptable," Lew said.
US companies' profit totaled $2.1 trillion in the third quarter, a 1.1% decrease compared with Q2 and the largest decline since the recession, according to the Commerce Department. Headwinds included a strong US dollar and weak global demand. The decline could complicate the Federal Reserve's decision-making about interest rates next month.
The California Public Employees' Retirement System has paid $3.4 billion to private equity fund managers since 1990 for profit sharing, according to the pension fund. CalPERS says private equity has been the best-performing investment, earning $24.2 billion. "Private equity has the highest net returns in our portfolio," Chief Investment Officer Ted Eliopoulos said.
Black Friday deals for Target and Amazon are bundling Micron memory cards with GoPro cameras thanks to information derived from online sales. Micron studied the attachment of its products' sales with a variety of camera options and showed retailers they were missing out on increased revenue opportunities. "The irony here is we actually used online data to drive an in-store promotion," said Micron's Wes Brewer.
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