Saturday, 28 March 2015
Last updated 5 hours ago
Jan 9 2007 | 10:58am ET
Hoping to head off another Long Term Capital Management, regulators from the U.S. and Europe are together investigating loans to hedge funds, potentially presaging a move to increase margins.
The Securities and Exchange Commission, New York Federal Reserve Bank and the U.K.’s Financial Services Authority, along with German and Swiss regulators, met with 10 banks that are among the largest lenders to hedge funds last month. In an interview with Bloomberg News, SEC Commissioner Annette Nazareth called the meeting “a fact-finding effort,” and said that no decision on whether new rules are needed has been made. But one thing is clear: Any move could put a dent in the $8 billion in prime brokerage fees investment banks reap each year.
Regulators fear that a battle for business in the lucrative prime brokerage market may be inflating leverage to dangerous levels. They hope to learn how much margin banks require in loans to hedge funds.
According to Bloomberg, Bear Stearns, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Merrill Lynch, Morgan Stanley and UBS participated in last month’s gathering.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…