The International Monetary Fund's executive board is confident that Managing Director Christine Lagarde can continue to carry out her duties, despite being ordered to stand trial in Paris over a dispute that dates back to her time as a minister in the French government, spokesman Gerry Rice said. The executive board is being briefed regularly on the matter, he said.
Andy Puzder, President-elect Donald Trump's choice for Labor secretary, has been a critic of government regulation, including the Labor Department's overtime rule. Neither Trump nor Puzder, CEO of CKE Restaurants Holdings, has commented on the fiduciary rule for retirement advisers, but some analysts expect the new administration to try to stop or ease the rule.
Reforms that came after the financial crisis are essential to efficient operation in the market and should not be dismantled, says Mary Jo White, the outgoing chief of the Securities and Exchange Commission. "In my view, it would be a grave mistake to weaken, let alone dismantle, these core post-crisis reforms," White said while speaking to the SEC's investor advisory committee Thursday.
EU lawmakers forged two deals intended to revive its plan for a capital market union: a 10-fold increase in the threshold for small companies required to file a prospectus and an increase to a 10% risk-retention rate for securitised debt. AFME's Richard Hopkin warns that the rule changes "will discourage the use of securitisation".
The European Commission is expected to issue its ruling on the proposed merger between Deutsche Boerse and London Stock Exchange Group that many suspect will be rejected for its creation of a derivatives monopoly, sources say. Should the deal gain approval, however, it would still need to face national and regional regulators, Deutsche Boerse CEO Carsten Kengeter says.
The European Central Bank committed to extending its asset-purchase scheme through the end of 2017, but will reduce its monthly purchases to €60 billion from €80 billion beginning in April. The ECB also changed its criteria for asset purchases, now allowing the purchase of sovereign bonds with yields lower than the -0.4% deposit rate and with maturities of a year.
Banks will be able to borrow government bonds from the European Central Bank for cash in an initiative aimed at eliminating the scarcity of bonds available as collateral for repurchase agreements, the ECB said Thursday. The 1.5% borrowing rate may not be so attractive, says Peter Schaffrik of RBC Capital Markets: "It's relatively expensive and it should not really allow general collateral to become much cheaper."
The Bank of England's Prudential Regulation Authority and the Financial Conduct Authority will be meeting with executives from Citigroup to discuss trading operations on 7 October, when the value of sterling plunged to a 31-year low. A rapid succession of trades by a Citi trader is thought to have fuelled the crash.
US and EU officials are making an effort to eliminate regulatory barriers that could bar US reinsurers from doing business in some European jurisdictions.
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