Top Interest Rate Headlines 10-01-10: Statement by CFTC Chairman Gensler and SEC Chairman Schapiro Regarding Events of May 6th

Statement by CFTC Chairman Gensler and SEC Chairman Schapiro on the Joint Report Regarding the Market Events of May 6thWashington, DC– The staffs of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) today released a joint report presenting their findings regarding the market events of May 6, 2010.   The report will be presented to the Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues.  Twelve days after May 6th, the staffs of the Commissions released a preliminary report on the events of that day.
http://www.cftc.gov/PressRoom/PressReleases/pr5912-10.html


U.S. Consumer Sentiment Index Reading of 68.2 Exceeds Estimates
By Courtney Schlisserman, Bloomberg
The Thomson Reuters/University of Michigan final index of U.S. consumer sentiment for September fell to 68.2 from 68.9 in August. The gauge was projected to fall to 67, according to the median forecast in a Bloomberg News survey of economists, and compares with a preliminary reading of 66.6 issued last month. The index averaged 89 in the five years leading up to the recession.
http://jlne.ws/bflBCq

ISM U.S. Manufacturing Index Decreased to 54.4 in September
By Bob Willis
Manufacturing expanded in September at the slowest pace in 10 months, underscoring the Federal Reserve’s forecast of “modest” U.S. growth in coming months. The Institute for Supply Management’s factory index dropped to 54.4 from 56.3 in August, the Tempe, Arizona-based group said today. Readings greater than 50 signal growth and economists forecast a decline to 54.5, according to the median estimate in a Bloomberg News survey. Measures of orders and production fell to the lowest level since June 2009.
http://jlne.ws/a3SXG3

Fed's Dudley Says More Easing Warranted Unless Outlook Changes
By Scott Lanman and Caroline Salas
Federal Reserve Bank of New York President William Dudley said the outlook for U.S. job growth and inflation is “unacceptable” and that more monetary easing is probably needed to spur growth and avert deflation.

Fed's Evans: More policy accommodation "desirable"
Reuters
The Federal Reserve should take further action to stimulate the economy, or risk letting it fall into a vicious cycle of joblessness and deflationary pressures, top Fed official said on Friday. Chicago Federal Reserve President Charles Evans framed the debate over further monetary policy accommodation by the U.S. central bank as one of "how much" and "how," rather than whether it should take steps in the first place.
http://jlne.ws/cKaept

Even Higher Capital Levels Proposed for Biggest Banks
CNBC
Finance ministers and central bankers from the Group of 20 nations are considering raising capital levels for the world's biggest banks by two to three percentage points above what was agreed to recently under the Basel III accord, CNBC has learned. Should this proposal be adopted, it could affect between 20 and 25 banks around the world, said a senior official.
http://jlne.ws/bQq9WB

Details of three new swaps rules proposed by CFTC
Reuters
The Commodity Futures Trading Commission proposed its first three of dozens of new rules on Friday that will police the $615 trillion over-the-counter derivatives market.
http://jlne.ws/92IkiY

U.S. Holiday Sales to Climb 3% to 3.5%, ICSC Says
U.S. retailers’ sales will climb 3 percent to 3.5 percent this holiday season, the best performance since 2006, as the economy improves, the International Council of Shopping Centers said.
http://jlne.ws/bjMSWQ

ECB's Trichet wary of financial transaction tax
BRUSSELS -- European Central Bank president Jean-Claude Trichet said Friday it would be a big mistake if the European Union decided to go it alone on taxing financial transactions, arguing that its introduction would cause banks to flee elsewhere.