Your daily dose of financial news

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It’s not quite cloak and dagger material, but the “shadow banking” sector still merits attention according to Fed Vice Chair Stanley Fischer. Speaking on Friday, Fischer said that regulators need to keep an eye on the shadow banking (nonbank financial institutions such as money market mutual funds, asset management firms, hedge funds, and some insurers), which have taken on a larger role in US financial markets since the 1980s and have held roughly 2/3 of all credit market assets since the late ‘90s – Law360

In this week’s Fair Game column, Gretchen Morgenson again looks across the Atlantic and asks why US companies aren’t mirroring Europe’s more common practice of fostering interaction between corporate boards and their most important investors – NYTimes

The booming US dollar may get another nudge this week when the IMF releases global foreign-exchange holdings for Q4 2014 that are expected to show central bankers stockpiling the greenback – WSJ

The BOE’s getting ready to roll out its own 2015 stress tests with a focus on major British banks. Results will be out in December – NYTimes

The Supreme Court’s recent Omnicare case is taking a starring role in a dustup between the parties in a SDNY securities class action, with the two sides offering  very different views on the applicability of the high court decision in letters to Judge Alison Nathan. Defendant Bio Scripp, accused of issuing false and misleading statements about its False Claims Act compliance and covering up a kickback scheme, argued that statements of belief are not actionable if “honestly held,” while plaintiffs asserted that Omnicare holds that “subjective falsity is not the exclusive means of alleging the falsity of opinion statements” – Law360

Here’s a foreclosure story you don’t usually hear—thanks to a backlog and regulatory red tape, some defaulted homeowners may (and that’s the key term, may) get to stay in their homes because the state statute of limitations for seizure has run. At least, that’s the argument that some housing lawyers are making and some courts are reluctantly adopting – NYTimes

At the same time, the WSJ reports that the unadjusted purchase mortgage index is up 3% from a year ago, with unexpectedly strong growth in the past 3 months alone. An average 30-year fixed-rate mortgage rate of 3.69% isn’t hurting demand at all, by the way – WSJ

For those of you who desperately miss big Benny B, your problems are solved with the launch of the Bernanke blog – Bloomberg

Entertainment news that doubles as a hard news story these days: a 31-year-old South African has been tapped to succeed Jon Stewart as host of the Daily Show.  More about Trevor Noah here – NYTimes

The promise of Big Data is, in part, being able to make better-informed decisions. But actually making sense of the information flooding in may feel like drinking from the firehose.  One strategy that may help is found in a little-known branch of psychology called “perceptual learning,” an “elementary skill” that focuses on training specific visual skills to develop a “good eye” for the material and extract meaningful patterns instantaneously – NYTimes.  And yes, Neo, this is part of seeing the matrix.

 

MDR

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