Month: July 2013

Banking News – Wintrust to Buy Diamond Bancorp in Chicago
&nbspThe serial acquirer in Rosemont, Ill., announced Wednesday that it has agreed to buy the $165 million-asset Diamond Bancorp, which has a branch on Chicago’s north side and three twigs in its northern suburbs.
Union Banking – http://www.americanbanker.com/issues/178_147/wintrust-to-buy-diamond-bancorp-in-chicago-1061022-1.html

Banking News – HomeStreet Joins Banks on Rebound in Pacific Northwest
&nbspThe Seattle finance lender’s agreements to buy two small banks would give it more money-making lending expertise and place it in the company of other banks like right Fiscal and AmericanWest that are engaged in M&A-driven makeovers.
Union Banking – http://www.americanbanker.com/issues/178_147/homestreet-joins-banks-on-rebound-in-pacific-northwest-1061018-1.html

Banking News – Risks, Regs Behind Jump in Banks Seeking to Shed Businesses
&nbspThe figure rose from 29% last year, according to the Institute of Global Finance and EY. Basel III, shareholder difficulty and other forces are said to be behind the return to core banking.
Union Banking – http://www.americanbanker.com/issues/178_147/risks-regs-behind-jump-in-banks-seeking-to-shed-businesses-1061009-1.html

Banking News – Opus Bank in Calif. Splits Retail, Money-making Units
&nbspThe rapidly growing Opus Bank in Irvine, Calif., has split its money-making and retail banking operations.
Union Banking – http://www.americanbanker.com/issues/178_147/opus-bank-in-california-splits-retail-money-making-units-1061006-1.html

Banking News – Banks hit by debit card cap fee ruling
&nbspVisa shares fell 10% after the ruling, and the American Bankers Friendship warned the declaration would have ‘disastrous penalty’ for banks
Fiscal Times – Fiscal Air force – http://www.ft.com/cms/s/0/6c4dcb0a-f9ec-11e2-98e0-00144feabdc0.html?ftcamp=published_links%2Frss%2Fcompanies_financial-air force%2Ffeed%2F%2Fproduct

Banking News – Your Tech Vendor’s Been Sold – What Do You Do Now?
&nbspBankers must do a lot of investigate when a vendor is sold in order to prepare for the transition and potentially take benefit of the change.
Union Banking – http://www.americanbanker.com/issues/178_147/your-tech-vendors-been-sold-what-do-you-do-now-1061004-1.html

Banking News – RBS selects McEwan as new chief
&nbspNew Zealander seen as a safe, politically square choice to succeed Stephen Hester who was ousted in June after difficulty from Reserves
Fiscal Times – Fiscal Air force – http://www.ft.com/cms/s/0/0935a53c-fa0b-11e2-98e0-00144feabdc0.html?ftcamp=published_links%2Frss%2Fcompanies_financial-air force%2Ffeed%2F%2Fproduct

Banking News – RBS selects McEwan as new chief
&nbspNew Zealander seen as a safe, politically square choice to succeed Stephen Hester who was ousted in June after difficulty from Reserves
FT.com – Banks – http://www.ft.com/cms/s/0/0935a53c-fa0b-11e2-98e0-00144feabdc0.html?ftcamp=published_links%2Frss%2Fcompanies_banks%2Ffeed%2F%2Fproduct

Banking News – Independent to Change Name to Santander Bank
&nbspSovereign Bank will change its name to Santander Bank and spend $200 million to upgrade twigs and roll out an exposure battle.
Union Banking – http://www.americanbanker.com/issues/178_147/independent-to-change-name-to-santander-bank-1061002-1.html

Banking News – Herbalife boosted by reports of Soros stake
&nbspRise in the share price to more than $65 extends the losses for the hedge fund Pershing Square that has bet against the dietetic supplement seller
Fiscal Times – Fiscal Air force – http://www.ft.com/cms/s/0/ccc4ed42-f9f6-11e2-b8ef-00144feabdc0.html?ftcamp=published_links%2Frss%2Fcompanies_financial-air force%2Ffeed%2F%2Fproduct

Banking News – SEC Adopts Rules to Boost Protections for Investors With Assets Being Held By Broker-Dealers
&nbsp

The Securities and Chat Fee today announced the adoption of rules calculated to substantially boost protections for investors who turn their money and securities over to broker-dealers registered with the SEC. 

The new rules, ordinary by a 3-2 Fee vote, require broker-dealers to file new reports with the Fee that should result in higher levels of falling in line with the SEC’s fiscal dependability rules. 

“These rules will provide vital bonus safeguards for consumer assets held by broker-dealers,” said Mary Jo White, Chair of the SEC.  “These rules will strengthen the audit equipment for broker-dealers and enhance our administration of the way they keep up custody of their customers’ assets.”

Broker-dealers are vital to start filing new weekly reports with the SEC and annual reports with SIPC by the end of 2013.  The condition for broker-dealers to file annual reports with the SEC is commanding June 1, 2014.

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FACT SHEET

Rising Protections for Investors Whose Assets Are Held by Their Broker-Dealer

The new rules amend a broker-dealer exposure rule (Rule 17a-5) and the broker-dealer notification rule (Rule 17a-11) under the Securities Chat Act of 1934. 

Social class

What Are Broker-Dealers? 

Broker-dealers are commonly entities that engage in the affair of moving out securities transactions either for someone else’s account or for their own account.  Under the federal securities laws, most entities engaged in these actions (with the notable exclusion of certain money-making banks) must catalog with the SEC and be subject to Fee rules.  Broker-dealers must be members of at least one self-dictatorial establishment (SRO) such as the Fiscal Diligence Dictatorial Power or a inhabitant securities chat.

How Are Consumer Assets at Broker-Dealers Confined? 

Broker-dealers that keep up custody of a consumer’s securities and cash are subject to strict equipment under the Chat Act that are calculated to protect and account for these assets. 

These equipment include:

• Net Capital Rule (Rule 15c3-1) – Requires a broker-dealer to keep up more than a dollar of highly liquid assets for each dollar of liabilities.  If the broker-dealer fails, this rule helps to ensure that the broker-dealer has ample liquid assets to pay all liabilities to customers.
• Consumer Safeguard Rule (Rule 15c3-3) – Broker-dealers sometime use their own funds to conduct trades and other transactions.  When engaging in such “proprietary affair actions,” this rule prohibits broker-dealers from using consumer securities and cash to finance their own affair.  By segregating consumer securities and cash from a firm’s proprietary affair actions, the rule increases the likelihood that consumer assets will be readily void to be returned to customers if a broker-dealer fails.
• Weekly Wellbeing Count Rule (Rule 17a-13) – This rule requires a broker-dealer on a weekly basis to count, examine, and verify the securities it in fact holds for customers and for itself.  It must compare that count with the amounts of such securities it should be holding as indicated by its records.  If there are differences between the actual amounts held and the amounts that records point toward should be held, the broker-dealer must take capital charges until the differences are resolved.
•  Account Proclamation Rule – Each SRO has rules that require a broker-dealer to send a proclamation – at least weekly – to each consumer shiny the consumer’s securities and cash positions held at the broker-dealer, as well as the try in the account.

These equipment are calculated to protect consumer assets held at broker-dealers.  But, if a broker-dealer violates these equipment by, for example, misappropriating these assets, the securities and cash may not be void to be returned to customers. 

In a circumstances where a broker-dealer misappropriates funds or converts securities from its consumer, the Securities Shareholder Safeguard Corporation (SIPC) may step in and initiate a insolvency proceeding, which is the process that determines whether SIPC will pay the customers for any shortfalls in their fiscal proclamation up to $500,000 per consumer (of which $250,000 can be used to make up a cash deficit.) 

The Rule Amendments

Increase Audit Equipment

Now, Section 17 of the Chat Act and Rule 17a-5 collectively require a broker-dealer to file an annual report with the SEC and the SRO designated to examine that broker-dealer.  The report must contain audited fiscal statements conducted by an self-determining public accountant registered with the PCAOB. 

Under the rule amendments:

• A broker-dealer that has custody of the customers’ assets must file a “falling in line report” with the SEC to verify they are adhering to broker-dealer capital equipment, caring consumer assets they hold, and periodically sending account statements to customers. The broker-dealer also must engage a PCAOB-registered self-determining public accountant to prepare a report based on an examination of certain statements in the broker-dealer’s falling in line report.
• A broker-dealer that does not have custody of its customers’ assets must file an “resistance report” with the Fee citing its resistance from equipment applicable to moving broker-dealers.  The broker-dealer also must engage a PCAOB-registered self-determining public accountant to prepare a report based on a review of certain statements in the broker-dealer’s resistance report. 

The examination or review of the new reports as well as the examination of the fiscal statements must be conducted in accordance with PCAOB values.

A broker-dealer that is a member of SIPC also must file its annual reports with SIPC, so that SIPC can better monitor diligence trends and enhance its information of fastidious firms. 

Increase Administration of Broker-Dealer Custody Practices

Now, Section 17(b) of the Chat Act requires broker-dealers to submit to routine inspections and examinations by SEC staff and the noteworthy SRO. 

The rule amendments enhance these broker-dealer examinations in two ways: 

First, the amendments require a broker-dealer to file a new weekly report (called Form Custody) that contains in rank about whether and how it maintains custody of its customers’ securities and cash.  The reports will set up a custody profile for the broker-dealer that examiners can use as a early point to focus their custody examinations. 

Second, the amendments require broker-dealers – in any case of whether they have custody of their clients’ assets – to agree to allow SEC or SRO staff to review the work papers of the self-determining public accountant if it’s requested in writing for purposes of an examination of the broker-dealer.  They must allow the accountant to discuss its findings with the examiners.

Family member of Broker-Dealer Custody Rule Amendments to Audits of Investment Advisers

In 2010, the SEC adopted Rule 206(4)-2 under the Investment Advisers Act of 1940, indicating what an investment adviser or its connect must do if it is a certified janitor of its client funds and securities.  In those situations, the adviser must obtain annually (or receive from its related person as defined by Rule 206(4)(2)) a written domestic control report set by an accountant registered with, and subject to regular inspection by, the PCAOB.  This report must be supported by the accountant’s examination of the certified janitor’s custody reins. 

           

The SEC has single-minded that the self-determining public accountant’s report based on an examination of the falling in line report will satisfy the domestic control report condition under Rule 206(4)-2.  In this way, the rule changes better align the reins that relate to safeguard of consumer assets of both broker-dealers and investment advisers.

What’s Next

The commanding date for the condition to file Form Custody and the condition to file annual reports with SIPC is Dec. 31, 2013.  The commanding date for the equipment concerning to broker-dealer annual reports is June 1, 2014.

SEC.gov Updates: Press Releases – http://www.sec.gov/servlet/Satellite/News/PressRelease/Detail/PressRelease/1370539740621

Banking News – Ecobank board to discuss chairman’s fate
&nbspThe African bank will set up the fate of Kolapo Lawson as Nigerian regulators broaden exploration into debts linked to his affair wellbeing
FT.com – Banks – http://www.ft.com/cms/s/0/a8f3fd70-f9e9-11e2-b8ef-00144feabdc0.html?ftcamp=published_links%2Frss%2Fcompanies_banks%2Ffeed%2F%2Fproduct

Banking News – BNP Paribas: tough going
&nbspFrench bank has plenty of thoughts for future growth, but weakness in its retail and investment banking markets is making life tough
FT.com – Banks – http://www.ft.com/cms/s/3/821777a8-f9e5-11e2-b8ef-00144feabdc0.html?ftcamp=published_links%2Frss%2Fcompanies_banks%2Ffeed%2F%2Fproduct

Banking News – SEC Adopts Amendments to Fiscal Dependability Rules for Broker-Dealers
&nbsp

The Securities and Chat Fee today announced the adoption of amendments to the net capital, consumer safeguard, books and records, and notification rules for broker-dealers. 

The amendments to the broker-dealer fiscal dependability rules are calculated to better protect a broker-dealer’s customers and enhance the SEC’s ability to monitor and prevent unsound affair practices.  The rule amendments were ordinary by a entire Fee vote.

“Investors need to feel in no doubt that their money is safe when it’s being held by their broker-dealers,” said Mary Jo White, Chair of the SEC.  “These events will much bolster the protections that our rules already offer.”

The rule amendments will become commanding 60 days after their periodical in the Federal Catalog.

# # #

FACT SHEET

Adopting Amendments to the Fiscal Dependability Rules for Broker-Dealers

Social class

What Are Broker-Dealers? 

Broker-dealers are commonly entities that engage in the affair of moving out securities transactions either for someone else’s account or for their own account.  Under the federal securities laws, most entities engaged in these actions (with the notable exclusion of certain money-making banks) must catalog with the SEC and be subject to Fee rules.  Broker-dealers must be members of at least one self-dictatorial establishment (SRO) such as the Fiscal Diligence Dictatorial Power or a inhabitant securities chat.

What Are Broker-Dealer Fiscal Dependability Rules and How Do They Protect Customers?

Broker-dealers must meet certain fiscal dependability equipment under the Securities Chat Act of 1934.  These equipment help to protect customers from the penalty of the fiscal failure of a broker-dealer by requiring the defense of consumer securities and funds held by the broker-dealer.

These equipment include:

• Net Capital Rule (Rule 15c3-1) – Requires a broker-dealer to keep up more than a dollar of highly liquid assets for each dollar of liabilities.  If the broker-dealer fails, this rule helps to ensure that the broker-dealer has ample liquid assets to pay all liabilities to customers.
• Consumer Safeguard Rule (Rule 15c3-3) – Broker-dealers sometime use their own funds to conduct trades and other transactions.  When engaging in such “proprietary affair actions,” this rule prohibits broker-dealers from using consumer securities and cash to finance their own affair.  By segregating consumer securities and cash from a firm’s proprietary affair actions, the rule increases the likelihood that consumer assets will be readily void to be returned to customers if a broker-dealer fails.
• Books and Records Rules (Chat Act Rules 17a-3 and 17a-4) – Require a broker-dealer to make and keep up certain affair records to help the firm in accounting for its actions, and help securities regulators in groping for falling in line with the securities laws. 
• Notification Rule (Chat Act Rule 17a-11) – Requires a broker-dealer to give notice to the SEC and other securities regulators when certain events occur, such as the firm’s net capital falling below its vital minimum.

These equipment are calculated to protect consumer assets held at broker-dealers.  But, if a broker-dealer violates these equipment by, for example, misappropriating these assets, the securities and cash may not be void to be returned to customers. 

In a circumstances where a broker-dealer misappropriates funds or converts securities from its consumer, the Securities Shareholder Safeguard Corporation (SIPC) may step in and initiate a insolvency proceeding, which is the process that determines whether SIPC will pay the customers for any shortfalls in their fiscal proclamation up to $500,000 per consumer (of which $250,000 can be used to make up a cash deficit.) 

2007 Bid

In 2007, the Fee projected a series of amendments to the broker-dealer fiscal dependability rules and gave the public the chance to comment.  Commenters were given an bonus chance to weigh in when the Fee re-opened the comment period in 2012.  

New Rules

Consumer Safeguard Rule (Rule 15c-3-3)

The key changes to the Consumer Safeguard Rule will:

• Close a “gap” between the classification of “consumer” in Rule 15c3-3 (which does not include broker-dealers) and the classification of “consumer” under the Securities Shareholder Safeguard Act (which includes broker-dealers).  It does this by requiring “moving broker-dealers” that keep up consumer securities and funds to keep up a new segregated reserve account for account holders that are broker-dealers.
• Place restrictions on cash bank deposits for purposes of the condition to keep up a reserve to protect consumer cash under Rule 15c3-3.  The rule is amended to exclude cash deposits held at linked banks and limit cash held at non-linked banks to an amount no greater than 15 percent of the bank’s equity capital, as reported by the bank in its most recent call report.
• Set up consumer leak, notice, and assenting consent equipment (for new fiscal proclamation) for programs where consumer cash in a securities account is “swept” to a money market or bank deposit product.

Net Capital Rule (Rule 15c3-1)

The key amendments to the Net Capital Rule will:

• Require a broker-dealer to adjust its net worth when calculating net capital by counting any liabilities that are assumed by a third party if the broker-dealer cannot exhibit that the third party has the assets – self-determining of the broker-dealer’s income and assets  – to pay the liabilities.
• Require a broker-dealer to treat as a liability any capital that is contributed under an contract giving the shareholder the option to retreat it.  The rule also requires a broker-dealer to treat as a liability any capital role that is withdrawn within a year of its role unless the broker-dealer receives consent for the withdrawal in writing from its designated groping power (DEA).
• Require broker-dealers to deduct from net capital (with regard to dependability bonding equipment prescribed by a broker-dealer’s SRO) the excess of any deductible amount over the amount honest by SRO rules.

• Clarify that any broker-dealer that becomes “in receivership” as that term is now defined in Rule 15c3-1 is vital to stop conducting a securities affair.  The companion amendment to Rule 17a-11 requires in receivership broker-dealers to provide notice to dictatorial creation.

Books and Records Rules (Rules 17a-3 and 17a-4)

The amendments to Rules 17a-3 and 17a-4 will require large broker-dealers to paper their market, credit, and liquidity risk management reins.

Notification Rule (Rule 17a-11)

The amendments to Rule 17a-11 will set up new notification equipment for when a broker-dealer’s repurchase and securities lending actions exceed a certain threshold.  In lieu of the notification condition, the final rule provides that a broker-dealer may report monthly its stock loan and repurchase try to its DEA, in a form square to its DEA.

What’s Next

The commanding date for these amendments is 60 days after periodical in the Federal Catalog.

SEC.gov Updates: Press Releases – http://www.sec.gov/servlet/Satellite/News/PressRelease/Detail/PressRelease/1370539739257

Banking News – Moneysupermarket.com falls after losing search positions
&nbspShares slide 15 per cent despite exposure revenue and profits bang in line with expectations after website lost leading positions in Google search results
Fiscal Times – Fiscal Air force – http://www.ft.com/cms/s/0/9f20b6a2-f9ea-11e2-98e0-00144feabdc0.html?ftcamp=published_links%2Frss%2Fcompanies_financial-air force%2Ffeed%2F%2Fproduct