Sifma : News on the capital markets, securities and financial industry

Investment banks will clarify pay clawback policies
Morgan Stanley and Goldman Sachs Group plan to offer details about their policies on compensation clawbacks after a group of shareholders demanded clarity. For example, a recent memo posted on a regulatory website said Goldman's "clawback covers actions or omissions and that it could apply to participation in a supervisory role." The Wall Street Journal/Dow Jones Newswires(2/7)

Judge dismisses MBS suits against Deutsche Bank
U.S. District Judge Jed Rakoff dismissed lawsuits brought by Dexia and the Teachers Insurance and Annuity Association of America against Deutsche Bank. The plaintiffs alleged that the bank misrepresented the quality of mortgage-backed securities. Rakoff said the lawsuits could be refiled if they focus specifically on MBS produced by the bank. The Wall Street Journal/Dow Jones Newswires(2/7), Reuters(2/7), Bloomberg Businessweek(2/8)

• Other News

Banks flock to collateralized mortgage obligations
Financial Times (tiered subscription model) (2/7)

Analysis: Some high-yield bonds remain attractive
The Wall Street Journal (2/7)

Washington Roundup

Bernanke defends Fed's efforts before Senate committee
Fed Chairman Ben Bernanke defended the central bank's efforts to reduce unemployment and control inflation. At a Senate Budget Committee hearing, Bernanke explained the Fed's reasoning behind plans to keep interest rates at record lows into 2014. The New York Times (tiered subscription model)(2/7), The Washington Post/The Associated Press(2/7)

Economy shouldn't delay reforms, FSB official says
Tiff Macklem, chairman of a key Financial Stability Board committee, said the dismal global economy should not prompt regulators to postpone reforms of the financial system. "In a risky world, the need to make the financial system safer and restore confidence is vital," he said. "If there is a reproach to be made, it is that progress has not been faster." Macklem said the FSB plans to propose rules to govern shadow banking by the end of 2012. Reuters(2/7)

• Other News

MSRB issues notice on bondholder consents
The Bond Buyer (special access for readers of SIFMA SmartBrief) (2/8)

Sen. Baucus adds muni bond measures to transportation bill
The Bond Buyer (special access for readers of SIFMA SmartBrief) (2/7)

Operations Update

Nasdaq aims to reduce time it takes to make trades
Nasdaq OMX is planning an upgrade at its main U.S. data center that will trim the time it takes to make trades in an effort to attract more algorithmic trading. Financial Times (tiered subscription model)(2/7)