Government-sponsored enterprises involved in housing, such as Fannie Mae and Freddie Mac, will have to report suspicious activities, such as possible money laundering and other fraud, directly to the Financial Crimes Enforcement Network, according to an announcement Thursday that finalized a 2011 proposal.
SIFMA President Kenneth Bentsen said the effect the Volcker rule will have on banks is not clear as the organization continues to review its lengthy text. SIFMA’s primary concern is that the rule will restrict firms’ abilities to make markets and hedge risk.
During the second day of hearings before the Securities and Exchange Commission and the Commodity Futures Trading Commission, suggestions from experts in securities law included forming a joint task force. The SEC-CFTC task force would tackle swaps as the commissions begin regulating over-the-counter derivatives as well as other initiatives.
The Federal Housing Administration has taken a hit as mortgage-related losses mount. The agency's reserves are in danger of dropping to less than what Congress mandates, officials said. The situation is expected to fuel speculation that the FHA might need government aid, although agency officials said they need to report only a shortfall to lawmakers.