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Washington Roundup

Oversight of equities and futures needs coordination, official says
Thomas Gira, an official at the Financial Industry Regulatory Authority, suggested that consolidation of supervision of the equities, futures and options markets could help deter market manipulation and investor fraud. "It’s important for regulators to have a holistic view," Gira said. Bloomberg(12/13)

Some mortgage industry members welcome higher "g-fees"
Some mortgage industry participants are optimistic that raising the guarantee fees that banks pay Fannie Mae and Freddie Mac to cover the risk of mortgage defaults would help attract private investors. Lawmakers have proposed legislation that would increase the so-called g-fees. "Private secondary market investors are starving for yield, and raising the g-fees to a level where they can compete would allow private capital to come back into the market," said Terry Wakefield, CEO at Wakefield Co. American Banker (free registration)(12/13)

Commentary: Financial transaction tax has dicey history
Columnist Jason Zweig offers a brief history of the financial transaction tax in the U.S., noting that "it is a surprisingly old idea with a distinctly dicey history." Zweig explains why such a tax wouldn't work and the problems it would cause. "They trigger the law of unintended consequences," Zweig writes. "By reducing the net profits of traders, the tax can prompt them to trade even more in an attempt to recoup the foregone revenue." The Wall Street Journal/Total Return blog(12/13)

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