SIFMA: News on the capital markets, securities and financial industry

Moynihan likely to tell board BofA is on right track
Brian Moynihan, CEO at Bank of America, is expected to stress at meeting with the bank's board his plan to stay the course, sources said. Moynihan's plan includes reducing expenses, working through mortgage issues, selling noncore assets and preserving capital. The Wall Street Journal (tiered subscription model)(11/16)

Bankers and investors are expected to share smaller profits
Wall Street's annual results are expected to be depressed, leading to smaller bonuses for bankers. However, bank shareholders could get even less. Banks could be forced to reconsider their compensation policies. The Wall Street Journal (tiered subscription model)(11/16)

 

Washington Roundup

CFTC closes in on missing MF Global funds, Chilton says
The Commodity Futures Trading Commission continues to look for the estimated $600 million in missing MF Global customer funds. "We're closer than when we first went in there," said Bart Chilton, a Democratic member of the CFTC. "The money is not where it should be. I think something nefarious has happened, potentially something illegal." Reuters(11/15)

Fed to raise collateral requirements on primary dealers
The Federal Reserve told primary dealers that it will increase collateral requirements on transactions related to mortgage-backed securities. The move is part of an effort to cover settlement risks with the central bank's counterparties. "The Federal Reserve Bank of New York informed its primary dealers today that it will require dealers to margin against their outstanding agency MBS forward transactions with the N.Y. Fed," according to a New York Fed representative. The Wall Street Journal (tiered subscription model)(11/15)

House panel approves reining in new swaps regulations
The House Financial Services subcommittee on capital markets approved a measure that would repeal the "push-out" provision that would require depository banks to move derivatives trades to affiliates. The panel approved four measures to repealing new regulations governing the swaps market. Read SIFMA's statementon the bills the subcommittee approved. Bloomberg Businessweek(11/15)

Whistle-blowers in forex case could test SEC tips program
Whistle-blowers who claim that State Street and Bank of New York Mellon overcharged clients for foreign-exchange transactions could be a test of the new program that encourages tips on financial wrongdoing. The whistle-blowers are seeking rewards from the Securities and Exchange Commission. The Wall Street Journal (tiered subscription model)(11/16)