The European Commission and the US Commodity Futures Trading Commission have agreed to accept each other's regulation of central counterparties as equivalent. "It means that European CCPs will be able to do business in the United States more easily and that US CCPs can continue to provide services to EU companies," said Jonathan Hill, financial-services commissioner for the EU.
Janet Yellen, head of the Federal Reserve, has rejected a reversal of the central bank's decision to start raising the federal funds rate. "I don't think it is going to be necessary to cut rates," she told the House Financial Services Committee. However, economic conditions are evolving, warranting "only gradual increases," Yellen said.
New Jersey Gov. Chris Christie has returned to his home state after suspending his campaign for the Republican nomination for president. Serious problems have piled up during his absence. Polling data show that his popularity in New Jersey fell while he was campaigning; critics accused him of abandoning the state.
Janet Yellen, head of the Federal Reserve, has told US lawmakers that loose monetary policy from the European Central Bank and the Bank of Japan affects the Fed's interest-rate policy. However, Yellen has not ruled out a rate increase in March.
Investors fear the effect of negative interest rates, but JPMorgan Chase economists say rates could go much lower. "It appears to us there is a lot of room for central banks to probe how low rates can go," they said.
The €500 note poses a problem for the European Central Bank if it decides to lower the deposit rate deeper into negative territory, experts say. The note would make it easier for lenders to close ECB accounts and store currency in the big denomination, avoiding losses on deposits. The ECB is considering eliminating the note.
Bank of England Governor Mark Carney benefits from a team of agents reporting on regional economic concerns. "You get all that sort of background that certainly doesn't come from reading statistics," said Martin Weale, an external member of the Monetary Policy Committee.
Deutsche Bank is considering a bond buyback to demonstrate the bank's soundness, a source says. The news has increased the bank's stock price, although the Financial Times reports that any buyback probably would not include contingent-convertible bonds, the source of greatest concern.
The Bank of England supports a change in how the Basel Committee on Banking Supervision's leverage ratio treats centrally cleared client trades. "Though the leverage ratio does not normally allow collateral to reduce exposures, the Bank supports an exception being made to allow initial margin to reduce leverage exposures for centrally-cleared client trades to ensure continuity and affordability of client clearing services," according to a letter from the BoE.
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