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

• Other News

More than 200 named managing directors at Morgan Stanley
Bloomberg (1/24)

Loreley Financing sues Citigroup over CDO fraud claims
Reuters (1/24)

Washington Roundup

Sen. Corker blasts Volcker rule's government-bond exemption
Sen. Bob Corker, R-Tenn., questioned the proposed Volcker rule's exemption for government debt. "I don't know why trading in U.S. Treasurys would be different than buying a [General Electric bond?" he said. "If you bet the wrong way on a U.S. Treasury you can lose just as much money as trading a GE bond." Stanford professor Darrell Duffie released a study on the effect the proposed Volcker rulewould have on market-making. American Banker (subscription required)(1/24), MarketWatch(1/24), Bloomberg Businessweek(1/24)

Industry groups remain concerned about DOL's fiduciary request
SIFMA and other industry groups met with officials at the Department of Labor to discuss a request from the department for information related to a proposed fiduciary standard for brokers. The groups want seeking clarity on the request, but after the meeting they remained unsure about how much help they can offer, because of the difficulty of gathering the requested information. Learn more about a fiduciary standard. AdvisorOne.com(1/24)

FINRA to propose new rules for fixed income research
The Financial Industry Regulatory Authority plans to file new rules with the Securities and Exchange Commission to that deal with conflicts of interest in fixed-income research. Financial Times(tiered subscription model)(1/24)

OCC's Walsh warns about derivatives-market overhaul
John Walsh, acting comptroller of the currency, said regulators' efforts to revamp the global derivatives market risk a "vast overreaction." "Lack of understanding feeds misperception, and derivatives are not particularly well understood, even by some top policymakers," Walsh said. "I'm not trying to suggest that this isn't a big market or that it doesn't involve sizable risks, but the risk ascribed to derivatives is often many orders of magnitude greater than the reality." Bloomberg(1/24), Risk.net (subscription required)(1/25)

Fed official raises concerns about rate projects
Charles Plosser, president of the Federal Reserve Bank of Philadelphia, is concerned that the central bank's new policy of releasing forecasts about benchmark interest rates might cause some confusion. He said he is concerned some investors might consider the projections to be promises. Bloomberg(1/24)

• Other News

Volcker rule should be reproposed, lawyer says
Reuters (1/24)