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Most Clicked SIFMA SmartBrief Stories


1. Supreme Court considers mutual fund advisers' compensation

SIFMA SmartBrief | Nov 03, 2009

The Supreme Court heard arguments regarding compensation policies for mutual fund investment advisers. The court appeared reluctant to give judges a role in overseeing the policies, although some justices indicated that courts might have to intervene. The high court's case focuses on mutual funds, but justices touched on compensation policies of other sectors. Read SIFMA's amicus brief filed in Jones v. Harris Associates. New York Times, The (11/02) National Public Radio (11/02)


2. First CMBS sale via TALF is on track as Fed's concern eases

SIFMA SmartBrief | Nov 04, 2009

Federal Reserve officials had raised concerns about a closely watched commercial mortgage-backed securities transaction, but the central bank indicated that its worry is easing. The deal is expected to be a test for the U.S. government's Term Asset-Backed Securities Loan Facility. The real estate industry is hoping the debt sale will lead to other similar deals. Wall Street Journal, The (11/04)


3. CIT Group aims to reduce debt via bankruptcy filing

SIFMA SmartBrief | Nov 02, 2009

In its bankruptcy filing, CIT Group listed assets of $71 billion and liabilities of nearly $65 billion. The lender said support from its bondholders should make it possible for the company to quickly exit court protection. "Short term, it's going to cause some difficulties for startups and smaller borrowers," said Jean Everett, a partner at Hiscock & Barclay. "CIT lent across so many sectors it's sort of difficult to predict how it'll affect each sector." Reuters (11/02) New York Times, The (11/01) Financial Times (tiered subscription model) (11/02) Bloomberg (11/01)


4. Bond dealers warn Treasury about rise in borrowing costs

SIFMA SmartBrief | Nov 05, 2009

The Treasury Borrowing Advisory Committee of SIFMA told officials that the Federal Reserve's unwinding of its program to buy mortgage-backed securities could increase the government's borrowing costs. The program has pushed down interest rates on many securities, particularly mortgage-backed securities. "Federal Reserve purchases have taken an enormous amount of supply out of the market this past year across fixed-income markets, but next year, financial markets should expect even greater issuance with no support. Such an outcome could pressure rates," the bond dealers said. Wall Street Journal, The (11/04) MarketWatch (11/04)


5. Fed says pay guidelines should be implemented this year

SIFMA SmartBrief | Nov 03, 2009

Although compensation rules aimed at reining in excessive risk-taking do not officially come into force until next year, the Federal Reserve told major banks that they need to follow pay guidelines in this year's round of bonuses. The Fed's call is likely a way to pre-empt public backlash against what is expected to be a massive bonus season for banks. The central bank made the call as banks decide how to divvy up bonus pools for 2009. Washington Post, The (11/03) Financial Times (tiered subscription model) (11/02) CNBC (11/02)


6. SEC focuses on 2 high-frequency trading issues

SIFMA SmartBrief | Nov 05, 2009

David Shillman, associate director of the trading and markets division at the Securities and Exchange Commission, said the agency is working on a proposal to address "sponsored naked access" to markets. He said the SEC is looking into whether monitoring must be done before the trade or whether post-trade monitoring is sufficient. The commission is also assessing who should be responsible for monitoring. Reuters (11/04)


7. Berkshire Hathaway seeks to buy tax credits from Fannie Mae

SIFMA SmartBrief | Nov 04, 2009

Berkshire Hathaway wants to purchase tax credits from Fannie Mae along with Goldman Sachs, sources said. The situation was already politically sensitive, and adding Warren Buffett to the mix makes it even more interesting. The Treasury Department, citing a lack of taxpayer benefits, may block the sale of Fannie Mae's tax credits. Goldman, Berkshire and other companies could use the tax credits, which are virtually worthless to Fannie Mae, to reduce their tax expenses. Wall Street Journal, The (11/04) CNBC (11/03)


8. Citigroup prepares emerging-market CDO as demand returns

SIFMA SmartBrief | Nov 05, 2009

Bankers at Citigroup, with Sydbank of Denmark acting as a portfolio manager, are about to launch one of the first emerging-market collateralized debt obligations since the beginning of the credit crunch. "The market for CDOs was dead, but now investor interest is slowly being revived, provided they are shown the right structure," said Philip Blackwood, Sydbank's emerging-market fixed-income managing director. "Demand for these types of emerging-market currency products is definitely there." Financial Times (tiered subscription model) (11/04)


9. Goldman traders record only 1 daily loss in Q3

SIFMA SmartBrief | Nov 05, 2009

In a regulatory filing, Goldman Sachs reported that its traders suffered only one daily loss in the third quarter, compared with two trading-day losses in the previous quarter. The trend highlights a trading frenzy Wall Street is enjoying as the Federal Reserve and other central banks pour liquidity into the system. Financial Times (tiered subscription model) (11/05)


10. Stock trading, financial hubs continue to evolve

SIFMA SmartBrief | Nov 02, 2009

In the late 1700s, brokers gathered near a buttonwood tree in New York to trade stocks. By 1817, traders had moved indoors, and in 1903, they settled the New York Stock Exchange at Wall and Broad streets, where it still stands. Electronic markets have emerged, resulting in much trading in cyberspace. The evolution of stock trading raises questions about whether New York continues to make sense as a financial center. Duncan Niederauer, head of NYSE Euronext, said that depends a lot on lawmakers in Washington, D.C. Wall Street Journal, The (10/30)




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