Week InReview | Banks, financial companies to apply new FASB rules on loan losses in 2019 | CFTC chief: Europe's benchmark laws could be hindrance to U.S. | NASAA warns investors about 'Next Big Thing' | ICYMI + Binge Reading Disorder
Friday, November 13, 2015
Let's recap
In case you missed it . . .
Banks to apply new rules on loan losses
New FASB rules effective in 2019
(Nov 11) Larger banks and other financial companies will have to follow impending key accounting rules on loan and other credit losses starting Jan. 1, 2019, the Financial Accounting Standards Board decided. The FASB chose that effective date for a new standard on accounting for credit losses the same day the board, by an unusual vote of 4-3, decided to advance planned rules on classification and measurement of financial instruments to final drafting. The board voted to advance to final drafting of new standard on classification and measurement, to be first applied in 2018. The standard-setting board plans to issue the proposed standard on classification and measurement in the coming weeks. It hopes to issue the new standard on expected credit losses in the first quarter of 2016.
Europe's benchmark laws could be hindrance to U.S.
CFTC chief Massad to EU regulators
(Nov 10) CFTC Chairman Timothy Massad urged European Union regulators not to take over benchmarking
  • CFTC remains focused on benchmark manipulation as forms of market manipulation are seemingly unlimited, Massad said at a trade association conference in Washington
  • U.S. derivatives regulator is on the lookout for benchmark cases
  • Massad declined to give a timetable for completion of his agency's proposal on limiting commodity market speculation
  • CFTC is looking at estimates for commodity supplies
  • Agency is considering working more closely with exchanges
  • More "fine tuning" expected for CFTC rules; more work needed to oversee clearinghouses: Massad
  • Speaking separately on Bloomberg TV, Massad says clearinghouse resiliency is one area being reviewed
  • Massad says progress has been made in harmonizing cross-border swaps rules
NASAA warns investors about 'next big thing'
Marijuana-related investments, binary options, digital currency
(Nov 9) Investors should be suspicious when considering investing in marijuana-related investments, binary options and digital currency, the North American Securities Administrators Association cautioned. A NASAA advisory includes information to help investors better understand each of these products, including their risks. As legal definitions on the growth and use of medical and recreational marijuana are clarified, marijuana investment opportunities could be susceptible to "pump-and-dump," the advisory said. As for binary option contracts, which are based upon a prediction of a security's value at a predetermined date, the advisory warned that there are only two outcomes: receiving a fixed amount of money for guessing correctly, or losing the entire investment for guessing incorrectly. Last, Bitcoin and other digital currency remain in the headlines, as different countries have little uniformity on how they're regulated, the advisory cautioned.
Binge reading disorder
Hand-curated, chosen with love
Unicorns Are a Sign of the Right Kind of Bubble (BloombergView) 

The answer to this question could shake the foundations of the asset-management industry. (BloombergView)

Confessions of a Paywall Journalist: Thanks to a booming trade press, lobbyists and other insiders know what's happening in government. The rest of the country, not so much. (Washington Monthly)

The Uberization of Money (WSJ)

A Thousand Years Ago, the Sun Erupted. If That Happened Now, We'd Be in Big Trouble. (Slate)
Transparency.
Inclusiveness.
Consensus.