Week InReview:  November 7, 2014

Global Oversight: (Oct. 7) The Financial Stability Board ("FSB") was active this week ahead of the Group of 20 nations summit in Brisbane next week, releasing two separate progress reports on OTC derivatives and compensation and updating its lists on too-big-to-fail global lenders and insurers.Read more on FSB OTC derivatives.  Read more on FSB compensation.

Fed Monetary Policy: (Nov. 6) The New York and Chicago Fed presidents have invoked the lessons of 1937 as reason for caution as the central bank prepares for the first interest-rate increase since it lowered its benchmark federal funds rate to zero in 2008. Read more. 


Cross-Border Swaps: (Nov. 5) The Commodity Futures Trading Commission ("CFTC") will delay a provision applying the Dodd-Frank Act to U.S. structured trades that banks book through overseas affiliates, which was previously set to take effect by January. Read more.


Global Repo Market: (Nov. 5) The FDIC's Vice Chairman said industry-driven stays "may be needed for those parts of the repo book that use long-term assets to secure short-term funding" and that "volatile wholesale funding" at banks' broker-dealer units is most vulnerable to runs across borders and firms. Read more.


Fannie, Freddie Restructuring: (Oct. 4) The GSEs saga may end with the Federal Housing Finance Agency ("FHFA") merging the companies into one entity focused only on insuring mortgages. The merger would be a multi-stage process with two first steps: a new funding mechanism serving both companies ("new super GSE") and a mechanism to off-load loans guaranteed by the new entity into private market, ensuring "minimal" capital requirements. Read more.



This is not an all-inclusive list of congressional, agency and market participant actions related to these issues. It is a snap-shot of what we believe is of most interest to institutional investors. Some links are to subscriber-only sites. 


Be sure to check our website for this InReview, upcoming events, and all our INVESTORS updates.  www.association.institutionalINVESTORS.org