Top Interest Rate Headlines 12-10-10: QE2 fragmenting global markets: Stiglitz

QE2 fragmenting global markets: Stiglitz
By Alonso Soto and Moises Avila, Reuters
Smaller developing countries should prepare measures to be able to cope with inflows of cash as investors look for bigger returns outside sluggish developed economies, Nobel Prize winning economist Joseph Stiglitz said on Friday.
http://jlne.ws/hZqwSZ

European Body Stays Tough on Bank-Pay Rules
BY SARAH SCHAEFER MUÑOZ, WSJ.com
A pan-European committee of financial regulators took a tough line on banker pay in its final guidelines issued Friday, despite heavy lobbying by the banking industry and U.K. officials to water down the rules.
http://jlne.ws/hXedcs

FRB announces first webcast of board meeting
Release Date: December 10, 2010
For immediate release
The Federal Reserve Board announced on Friday that a live webcast of its December 16 open meeting will be available on the Board's website. At the meeting, which is scheduled to begin at 2:30 p.m. EST, the Board will discuss proposed rules governing debit card interchange fees and routing. This will be the first time the Board has webcast one of its meetings. The Board has previously webcast other public events such as Chairman Bernanke's town hall meeting with educators Leaving the Board and a conference on addressing issues facing small businesses Leaving the Board.
http://jlne.ws/dQKddj

US econ growth gauge at highest point since May- ECRI
Reuters
A measure of future U.S. economic growth rose to a 29-week high in the latest week,
while the index's annualized growth rate rose to a 27-week
high, a research group said on Friday.
http://jlne.ws/gmleXY

UBS Americas CEO says he is seen as a "cowboy" within Swiss bank
Shanny Basa, Financial News/Dow Jones
Robert Wolf, chairman and chief executive of UBS Group Americas and president of UBS Investment Bank, said he missed out on becoming head of the Swiss firm because cultural differences mean management view him as “little more than a cowboy.”
http://jlne.ws/fu9FVk

CFTC Delays Vote on Rules For Swap Trading
By SARAH N. LYNCH
WSJ.com
WASHINGTON-U.S. derivatives regulators unexpectedly tabled a plan to vote on proposed rules designed to make over-the-counter derivatives prices more transparent, amid dissent within the agency.
http://jlne.ws/fnIGuD

US swap trading reforms face obstacle
By Michael Mackenzie and Aline van Duyn in New York
FT.com / Commodities
Differences have emerged between US regulators over how to police trading in the vast privately-traded swaps markets, with proposals for new rules delayed by at least a week.
http://jlne.ws/gdrmaF

Quick View: OTC swaps fight brews
By Michael Mackenzie in New York
FT.com / FT Trading Room
The battle has begun. Regulating how the US dollar-denominated over-the-counter swaps market will trade under the Dodd-Frank Act has sparked its first major fight. Instead of voting on the new rules governing swap execution facilities, SEFs, Gary Gensler, chairman of the Commodity Futures Trading Commission said at an open meeting on Thursday, that a planned vote would be delayed until next week, the 16th of December.
http://jlne.ws/dVsNyQ

Regulators Close to Gaining New Funding for Dodd-Frank Efforts
By Joshua Gallu and Phil Mattingly, Bloomberg
U.S. financial regulators, working to secure funding needed to implement new responsibilities mandated by the Dodd-Frank Act, are in line to be among the few agencies to benefit from the year's final congressional spending measure. The Securities and Exchange Commission and Commodity Futures Trading Commission, two agencies writing a bulk of the rules required by the new law, took a first step yesterday toward locking in more funding for next year, even as lawmakers moved to freeze spending for most agencies at 2010 levels.
http://jlne.ws/haU0Xy

Dodd-Frank Financial Reform May Pressure Bonuses
Wall Street bonuses could face pressure from an unexpected source this year: the Dodd-Frank financial reform law.
http://jlne.ws/hchKQ4

Bankers in Europe Face Cash Bonus Limits After Failing to Alter EU Rules
By Ben Moshinsky, Bloomberg
Bankers will face limits on cash payouts and the size of their bonus relative to salary from the start of next year, as European Union regulators approved laws to curb incentives for excessive risk-taking.
http://jlne.ws/eJXo9Q

Ron Paul, Author of 'End the Fed,' to Chair Monetary Subcommittee
By HUGH COLLINS, DailyFinance
Rep. Ron Paul, author of the best-selling book End the Fed, will head the House subcommittee overseeing the Federal Reserve.
http://jlne.ws/gBdFjo

Basel Group Seeks to Curb Banks' Risk From Rogue Traders, Fraud
Bloomberg
Banks should improve their defenses against losses caused by rogue traders, client fraud and other so-called operational risks, global regulators said.
http://jlne.ws/i8Cso7

Banks Face Political Contribution Ban in Municipal Derivatives Business
Bloomberg
Banks that arrange derivative trades with U.S. states, municipalities and public-pension systems may be barred from giving to the campaigns of politicians with the power to award them work.
http://jlne.ws/ewlFQA

Goldman CDS trading activities under fire
By Francesco Guerrera, Justin Baer and Telis Demos, FT.com
Goldman Sachs ' trading activities in the credit insurance market in 2007 have come under attack from a US senator after e-mails revealed a senior trader urged colleagues to "kill" some investors' positions.
http://jlne.ws/g3lRjL

RBS was a disaster on a massive scale - so was the FSA's 'report'
AFP Telegraph Finance News via Yahoo! UK & Ireland Finance
Lord Turner's investigation is better late than never, but did it achieve anything?
http://jlne.ws/emtl1B

Citigroup Names Obama's Orszag Vice Chairman of Investment Bank
Bloomberg
Citigroup Inc. , the biggest bailout recipient among U.S. banks during the financial crisis, hired former White House Budget Director Peter Orszag to be vice chairman of its investment-banking division.
http://jlne.ws/hv7HPz