Week InReview | Global Watchdogs. Treasury's MBS Exercise by Credit Ratings Companies. SEC's Cyber Scrutiny. Congressman Banishes Satan. Hedge-Fund Reinsurance Loophole. 
February 6, 2015
Financial parties evaluating risk control
International report recommends caution
(Feb. 5) A group consisting of senior international securities, banking and insurance supervisors recommended that executives in their sectors not rely too much on internal models for credit risk management and regulatory capital. The Joint Forum was formed by the Basel Committee on Banking Supervision ("BCBS"), the International Organization of Securities Commissions ("IOSCO") and the International Association of Insurance Supervisors ("IAIS").
MBS exercise by credit rating companies
Treasury releases analysis
(Feb. 5) The Treasury published their analysis by credit ratings agencies of hypothetical pools of residential mortgage loans through the department's Private Label Securities initiative.
SEC penalties for deficient cybersecurity plans
Agency now has tools to issue penalties
(Feb. 5) While the SEC doesn't have regulations wholly dedicated to registrants' cybersecurity practices, existing rules do include obligations for market participants, and can be used by the agency to monitor certain registrant's policies and procedures.
Congressman changes bill number from 666
Narrowly avoids association with Satan
(Feb. 4) As Republican Texas Congressman Joe Barton prepared to introduce legislation removing all government restrictions on the export of crude oil, he noted the number assigned to his bill was that of Satan himself, 666, and successfully lobbied to have the number changed.
Hedge-fund reinsurance loophole
IRS aims for rules in 90 days
(Feb. 4) The IRS plans to regulate investments routed by hedge-fund managers through insurance companies outside the U.S. The Treasury, in an August letter, said the loophole allows hedge-fund managers to avoid taxes by routing investments through an insurance company in low-tax countries, and that vague laws make tackling the issue difficult.