Basel 3 Capital Concerns
Basel 3 Capital Concerns
A senior US banking regulator has voiced concerns that the banking industry risks unraveling all of the good work on capital. Michael Hsu, acting Comptroller of the Currency, has criticized banks for pushing back against the finalization of the Basel 3 measures. US regulators have agreed to half the capital increase suggested by the international standards and reduce the number of banks they apply to. Mr. Hsu argues that banks are forgetting the lessons of the global financial crisis. Readers may be interested in our Regulatory Update for Internal Auditors webinar.
NYSE To Extend Trading Hours
The New York Stock Exchange is set to extend the trading hours for its electronic exchange. NYSE is seeking permission from the SEC and the Consolidated Tape Association to lengthen the hours from 1.30am to 11.30 pm as it takes advantage of retail investor demand. The Arca system trades an average of $27.7 billion in ETF’s and $ 21.8 billion in corporate stocks a day.
‘Quishing” On the Up
Cyber security companies are warning that the use of fraudulent QR codes designed to fool users to disclose personal data is on the up. Such codes tend to be embedded in PDF documents. Embedded images frequently bypass scanning tools. Whilst the URL code can be seen when using a smartphone, it is not obvious that the destination is a problem. Readers may be interested in our Cyber Risk Management in Financial Services webinar.
Franklin Templeton Meltdown
The asset manager has just suffered the worst quarter in its history in terms of outflows. Reputational problems and poor returns have led to $37 billion of outflows with $24 billion in the last quarter. A focus remains the suspension of co-chief investment officer, Ken Leech, in connection with an investigation into “cherry picking”. This is the illegal practice of allocating profitable trades to preferred clients. All a shame given that the asset manager specializes in fixed income funds at a time when interest rates are falling.