Your daily dose of financial news

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Tough news for British bankers to start the week, as the UK Financial Conduct Authority last week issued a much-anticipated proposal that would establish a “presumption of responsibility” for senior managers and key board members if their firms fail and require them to prove that they took steps to avoid breaking the law or actively stopped illegal activity upon its discovery.  The change would prompt a shift in the evidentiary standard in enforcement actions—away from regulators proving a dereliction of duties by top officials and toward those officials rebutting the presumption that they did their jobs inappropriately.  As you might imagine, the proposal has “caused an uproar within U.K. Financial Circles” – Law360 and WSJ

Fair Game’s Gretchen Morgenson looked at less-binding but similarly principled ideas floating around the US right now in her column this week – NYTimes

Europe’s current economic predicament has meant the euro at a 12-year low against the dollar and the flood of investor cash from the Eurozone and into the US and countries like Denmark and Switzerland by investors seeking better returns – WSJ

The yin to this yang is a US dollar on steroids that is prompting many U.S. multinationals to slash profit expectations – WSJ

Sullivan & Cromwell senior chair Rodgin Cohen made news last week by questioning the interference by regulators in Wall Street business. A rather brief Breakingviews piece in the Dealbook today does some questioning of its own of Mr. Cohen’s take on watchdogs – NYTimes

Former Fed Chair Paul Volcker has his own suggestions for overhauling the regulatory landscape—for him, it’s all about consolidation for the sake of simplicity—though he’s not optimistic about any actual change making it through Congress – WSJ

Continuing its tear of similar actions since late 2014, the US credit union regulator NCUA announced on Friday that it was suing HSBC Bank USA NA in New York federal court over allegations that it failed as a trustee of nearly $2 billion in RMBS trusts and contributed to the downfall of 5 credit unions.  Specifically, NCUA asserts that HSBC failed to properly monitor loan servicers, notify the credit unions about loan defects, or act properly to force the repurchase of bad loans. HSBC joins the growing list of trustee defendants in separate actions that include Deutsche Bank, US Bank, Bank of America, and Wells Fargo – Law360

There’s apparently a twist in the Argentina debt saga, with Citigroup announcing yesterday that Judge Griesa has reversed course and will allow the bank to make interest payments at the end of the month to investors holding over $2 billion in Argentine bonds.  The order—expected to be filed today—apparently is limited specifically to Citibank and may be the result of the “unique circumstances” facing Citi’s Argentina operations after Citibank announced it was exiting the custody business there – NYTimes

PwC’s Dan Ryan offers up his top 10 lessons gleaned from the latest round of the Fed’s stress tests as part of Law360’s “Expert Analysis” series.  This one is a little alphabet soup heavy (and “BHC,” which Danno assumes we all know, is “bank holding company”) – Law360

Here’s a general question to consider—is it worth it to have had a job important enough to merit your departure’s mention in the national newspaper of record if said mention is accompanied by a headline describing you as “Often wrong but seldom boring”?  That’s the existential query for former president of the Dallas Fed Richard Fisher to wrestle with as he heads into the sunset – NYTimes

We’ve looked at much of the drama surrounding the SEC’s enforcement actions over the past months—from its use of administrative courts for  enforcement actions to the difficult insider trading landscape post Newman.  SDNY Judge Jed Rakoff has been keeping tabs on it all, too, and in a recent interview with Law360 offered up his take on the two hot button issues, arguing that insider trading actions are “particularly ill-suited” for ALJs and that the traditionally court-defined insider-trading crime needs a “clearly defined statute” – Law360

The NYTimes’ Sunday Book Review was devoted to The Secret Life of Money, giving us a good excuse to dig in to some longer reads here.  Among the highlights, the true story of the unrecognized woman at the heart of Monopoly, Ron Lieber’s exploration of the delicate introduction of the fiscal world to children, and two takes on the oft-perilous mixing of money and religion within Islam and Catholicism.

Bloomberg’s The Spark feature explores the possibilities inherent in transparent solar cells, a technology that trades some collection efficiency for clarity by targeting the invisible parts of the solar spectrum – Bloomberg

I wouldn’t trade my Minnesota life for anything.  That said, Tim Gunn’s typical NYC Sunday sounds pretty spectacular – NYTimes

 

MDR

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