French President Emmanuel Macron said that if the UK wants its banks to retain free access to the European single market, Britain must contribute financially to the EU budget and submit to the authority of EU courts. The approach is commonly called the "Norway model" because that's Norway's relationship with the EU.
The House has passed a stopgap measure to keep the government open after today, but Democratic opposition seems likely to prevent passage in the Senate. Senate Majority Leader Mitch McConnell, R-Ky., didn't appear to have enough votes when the Senate adjourned late Thursday.
Bundesbank President Jens Weidmann has dismissed criticism from Christine Lagarde, managing director of the International Monetary Fund, that Germany's current-account and budget surpluses are excessive and that some cash reserves should be diverted to public spending. Lagarde contends lowering the surpluses would reduce global imbalance and curb protectionism, but Weidmann has countered an increase in public spending "would likely be a futile undertaking".
The European Securities and Markets Authority is expected to publish updated guidance concerning post-trade reporting requirements for over-the-counter derivatives under the revised Markets in Financial Instruments Directive after reviewing industry comments, sources say.
MetLife is claiming a legal victory after the Trump administration has dropped an appeal to maintain the insurer's designation as a systemically important financial institution. Treasury Secretary Steven Mnuchin, who heads the Financial Stability Oversight Council, has expressed satisfaction the case is closed and has promised to work with other regulators to review the process for classifying entities as systemically important.
The Financial Industry Regulatory Authority said that it expects revenue to fall to $822 million this year from $828.7 million in 2017 but that it will not propose higher fees for members. FINRA said it will make up for any revenue shortfall by drawing funds from reserves.
Financial-technology startup Visible Alpha has received a $38 million investment from Goldman Sachs, Wells Fargo, Banco Santander, Macquarie Group and others. Research-fee rules under Europe's revised Markets in Financial Instruments Directive have been a boon to Visible Alpha tools that gauge research quality, according to the firm.
New York Gov. Andrew Cuomo has offered a bill that would tax carried interest as ordinary income, rather than as capital gains. If approved, the change will not take effect until Connecticut, New Jersey, Massachusetts and Pennsylvania make similar changes.
A European Commission report says that the value of nonperforming loans on banks' balance sheets is declining but that the total is still excessive. The commission plans to introduce "statutory prudential backstops" to ensure banks set aside enough capital to absorb losses from loans that go bad.
- Page 1