alert

FINRA Alert! Short Interest – What It Is, What It Is Not. In post, FINRA calls out how some websites might be redistributing the Short Sale Volume Daily File and refer to the data as “short interest,” incorrectly.

by Dismal-Jellyfish Source: https://www.finra.org/investors/insights/short-interest What Is Short Interest? To understand what short interest is, we should first talk about short sales. Put simply, a short sale involves the sale of a stock an investor does not own. When an investor engages in short …

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SEC Alert! SEC proposing new rules (386 pages) relating to a broker-dealer’s duty of best execution. Enhances the existing regulatory framework calling for more robust policies and procedures for broker-dealers engaging in certain conflicted transactions with retail customers.

by Dismal-Jellyfish https://public-inspection.federalregister.gov/2022-27644.pdf https://public-inspection.federalregister.gov/2022-27644.pdf While the Commission believes the existing regulatory framework concerning the duty of best execution has helped broker-dealers fulfill their duty to their customers, the Commission believes this regulatory framework can be made more effective. In particular, …

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Inflation Alert! Inflation in services (where nearly 2/3 of consumer spending goes) jumped +0.6% month-to-month and 7.5% year-over-year to a 40 year high. Inflation is NOT slowing down and data shows it is becoming entrenched in services, where the bulk of money is spent.

by Dismal-Jellyfish Source: https://www.bls.gov/news.release/cpi.nr0.htm Good afternoon, as the title of the post states, approximately 2/3 of consumer spending goes into services and as we will see below, inflation is still running rampant! Things like housing, healthcare, insurance, education, streaming services (for example …

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Federal Reserve Alert! Federal Reserve Board announces the designation of the Chairs and Deputy Chairs of the 12 Federal Reserve Banks for 2023

Source: https://www.federalreserve.gov/newsevents/pressreleases/other20230110a.htm The Federal Reserve Board on Tuesday announced the designation of the Chairs and Deputy Chairs of the 12 Federal Reserve Banks for 2023. Each Reserve Bank has a nine-member board of directors. The Board of Governors in Washington appoints …

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Inflation Alert! Fed Governor Michelle W Bowman: ‘once we achieve a sufficiently restrictive federal funds rate, it will need to remain at that level for some time’ ‘It is likely that as a part of this process, labor markets will soften somewhat before we bring inflation back to our 2 percent goal.’

by Dismal-Jellyfish Source: https://www.federalreserve.gov/newsevents/speech/bowman20230110a.htm Thank you, Bill, and I’d also like to thank Alex Sanchez and the Florida Bankers Association for the invitation to be with you today. It is a pleasure to be here in person to discuss issues that …

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FDIC Alert! FDIC Quarterly Banking Profile for the 3rd quarter: Number and Assets of Banks on the “Problem Bank List”. FDIC Problem Bank List is a confidential list, published by FDIC every quarter, of U.S. banks and thrifts that are on the brink of financial insolvency

by BoatSurfer600 https://www.fdic.gov/analysis/quarterly-banking-profile/qbp/2022sep/chart8.xlsx FDIC Quarterly Banking Profile for the third quarter: Number and Assets of Banks on the “Problem Bank List”. FDIC Problem Bank List is a confidential list, published by FDIC every quarter, of U.S. banks and thrifts that …

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Federal Reserve and FDIC Alert! The agencies identified two deficiencies in the 2021 plan submission of Credit Suisse AG, which pertain to resolution planning cash flow forecasting capabilities and governance for their U.S. operations.

by Dismal-Jellyfish Source: https://www.fdic.gov/news/press-releases/2022/pr22088.html The Federal Reserve Board and the Federal Deposit Insurance Corporation announced today the results of their joint review of the resolution plans for 71 domestic and foreign banking organizations. Resolution plans must describe a financial company’s strategy …

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Office of Financial Research Alert! OFR finds Hedge Fund Activities Can Influence the U.S. Treasury Yield Curve.

by Dismal-Jellyfish Source: https://www.financialresearch.gov/the-ofr-blog/2022/12/27/hedge-fund-activities-can-influence-the-us-treasury-yield-curve/ The March 2020 stress on the U.S. Treasury market raised questions about the role of hedge funds in the financial system and whether their activities can increase systemic risk. Using a sample of regulatory hedge fund data …

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FICC – MBS Alert! Capped Contingency Liquidity Facility (“CCLF®”) Reset Reminder and Adjustable Percentage Update FICC will change the adjustable percentage from 80% to 90% for purposes of calculating the Defined Capped Liquidity Amount

by Dismal-Jellyfish Source: https://www.dtcc.com/-/media/Files/pdf/2022/12/21/MBS1171-22.pdf What is the Capped Contingency Liquidity Facility (“CCLF®”)? On April 25, 2017, the Commission approved FICC’s adoption of the Clearing Agency Liquidity Risk Management Framework (‘‘Framework’’), which broadly describes FICC’s liquidity risk management strategy and objective to maintain …

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SEC Alert! SEC Charges Financial Services Professional and Associate in $47 Million Front-Running Scheme

Source: https://www.sec.gov/news/press-release/2022-228 The Securities and Exchange Commission today announced fraud charges against Lawrence Billimek, an employee of a major asset management firm with securities portfolios worth billions of dollars, and Alan Williams, who previously worked at several financial industry firms, for …

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SEC Alert! SEC Charges Samuel Bankman-Fried with Defrauding Investors in Crypto Asset Trading Platform FTX. Defendant concealed his diversion of FTX customers’ funds to crypto trading firm Alameda Research while raising more than $1.8 billion from investors

Source: https://www.sec.gov/news/press-release/2022-219 The Securities and Exchange Commission today charged Samuel Bankman-Fried with orchestrating a scheme to defraud equity investors in FTX Trading Ltd. (FTX), the crypto trading platform of which he was the CEO and co-founder. Investigations as to other securities …

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Federal Reserve Alert! Vice Chair for Supervision Michael S. Barr in speech: “We are currently evaluating whether the supervisory stress test that is used to set capital requirements for large banks reflects an appropriately wide range of risks.”

Source: https://www.federalreserve.gov/newsevents/speech/barr20221201a.htm In my first speech as Vice Chair for Supervision in September, I said that the Federal Reserve Board would soon engage in a holistic review of capital standards. My argument, then and now, is that our review of regulatory …

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Federal Reserve Alert! Federal Reserve Board announces annual indexing of reserve requirement exemption amount and low reserve tranche for 2023. To be set at $36.1 million, up from $32.4 million in 2022, and the low reserve tranche will be set at $691.7 million, up from $640.6 million in 2022.

by Dismal-Jellyfish Source: https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20221129a1.pdf The Federal Reserve announced the annual indexing of the reserve requirement exemption amount and the low reserve tranche for 2023. The annual indexation and publication of these amounts are required by law and does not indicate a change …

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Federal Reserve Alert! Fed releases Financial Stability Report, their framework for assessing the resilience of the U.S. financial system and presents the Board’s current assessment. They see as vulnerabilities: Asset valuations, Borrowing by business and households, Leverage, and Funding Risks.

Source: https://www.federalreserve.gov/publications/files/financial-stability-report-20221104.pdf Against this backdrop, our view of the current level of vulnerabilities is as follows: Asset valuations. Higher interest rates and a weaker outlook for the economy led prices of financial assets to fall amid heightened volatility, but real estate prices …

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Inflation Alert! Interest payments in the third quarter up 13.59% ($88.125 billion) from last quarter and 24% ($143.667 billion) from this time last year.

by Dismal-Jellyfish Interest costs and the national debt could be even higher if interest rates continue their upward trajectory and outperform CBO’s economic forecast. They planned for this, right?!?!?! CBO estimated CPI inflation will total 4.7 percent in CY 2022, 2.7 …

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