Saturday, 20 September 2014
Last updated 12 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.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.