Federal Reserve Vice Chairwoman Janet Yellen says she sees nothing in credit markets that justifies raising interest rates and that she supports keeping the central bank's key rate at a historic low. "I don't see pervasive evidence of rapid credit growth, a marked buildup in leverage or significant asset bubbles that would threaten financial stability," she said. "But there are signs that some parties are reaching for yield, and the Federal Reserve continues to carefully monitor this situation."
The heads of BATS Global Markets, Nasdaq OMX Group and NYSE Euronext are seeking rules that would rein in dark pools, which are draining business away from traditional exchanges. "While holistic reform may also be warranted, we believe this is the time to introduce an obligation in order to trade based on the publicly quoted trade price," according to the exchanges.
Some economists are raising questions about a study by Kenneth Rogoff and Carmen Reinhart of Harvard University that policymakers in Europe and the U.S. used to justify austerity budgets. A paper by economists at the University of Massachusetts, Amherst says the 2010 study contained fundamental errors and overstates the relationship between sovereign debt and economic growth.
Most financial advisers are generally happy about their business, but 64% are worried that they don't have time to "get things done," according to a study by Pershing. Advisers are pressed for time because two-thirds are adding clients, while less than 10% are reducing them, the study found.
A onetime adviser to then-Securities and Exchange Commission Chairman Arthur Levitt is a candidate for a key post in the SEC's Trading and Markets Division, sources say. Joseph Lombard has expertise in market structure and works at the law firm of Murphy & McGonigle.