Hedge funds

The proposed capital rule risks driving borrowers away from the traditional banking industry and into the arms of shadow banks, whose support during stressful times can be fleeting.

Federal Reserve Vice Chair for Supervision Michael Barr said in a speech Tuesday that banks might need to establish margin to counteract counterparty risks presented by private funds.

Beyond Citadel, recipients of stock tips described in legal documents — without being named — include people at block-trading specialist CaaS Capital Management, Segantii Capital Management and Evolution Capital Management, according to people with knowledge of the matter.

When Gensler arrived at the SEC in 2021, he took on just about everything. Rules for stock-market trading, Treasury-security clearing, executive-pay disclosures, private equity, crypto, short-selling, climate-change risks, even AI: nothing seemed off limits. But now, three years later, to Big Finance, the verdict is clear: Gary Gensler overreached.

The Securities and Exchange Commission and the Federal Reserve have questioned prime brokers about the basis trade as well.

The Securities and Exchange Commission plows ahead with plans to boost oversight of the private fund industry. 

Federal Reserve Gov. Michelle Bowman said regulations on banks have spurred the growth of unsupervised non-bank financial institutions like fintechs and private equity firms.

The crypto lender Voyager Digital is pursuing settlements with two top executives after an internal probe uncovered potential claims of gross negligence stemming from risky loans made to the defunct hedge fund Three Arrows Capital, court papers show.

The banks have reportedly facilitated trades of Russian sovereign and corporate debt. Two Democrats in Congress want more information, saying that the dealings, though legal, may undermine efforts to hold Russian President Vladimir Putin accountable for the invasion of Ukraine.

The Financial Stability Oversight Council has struggled to find its footing since its creation in Dodd-Frank. The Treasury secretary has signaled a more aggressive role for the panel, including reviving its authority to target nonbank behemoths.

The scheduled meeting with members of the House Financial Services comes at a time when large banks are warning of significant losses tied to the derivatives blowup at the hedge fund Archegos Capital.

Treasury Secretary Janet Yellen conducted her first meeting as chair of the Financial Stability Oversight Council and set the stage for a potential recalibration of the panel's role after it was weakened in the Trump administration.

Treasury Secretary Janet Yellen said she prefers to have the Financial Stability Oversight Council flag hazardous activities by nonbanks rather than subject specific firms to heightened supervision.

Banks weren't involved in the trading frenzy, but some observers say the regulatory response should address risks to all financial institutions.

Regulators already finalized a rollback of the proprietary trading ban section of the rule but signaled then that their overhaul was not finished.

The agencies handed banks a significant victory when they finalized revisions to the Dodd-Frank proprietary trading ban, but officials also plan to re-propose changes to the “covered funds” section of the rule.

Attempts to roll back a safeguard on derivatives would give megabanks a $40 billion windfall, putting taxpayers on the hook.

The company protects digital assets with hardware-based security, biometrics and quorums. Hedge funds are already signing on.

Data scientists from NASA, Google and hundreds of other places are working for financial firms in their spare time. Is this a good idea?

The funds have brought in record amounts thanks to lowered fees and more salespeople; ex-Goldman managing director says in suit he was blamed for trades.