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Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

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November 24, 2024

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December 23, 2024

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The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 4 … 6 Next

Most Read

Central Banks

Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

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Artificial Intelligence

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August 15, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

>

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 4 … 6 Next

Most Read

Central Banks

Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

>

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

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December 23, 2024

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>

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\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 4 … 6 Next

Most Read

Central Banks

Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

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Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

>

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Central Banks

Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

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December 23, 2024

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Follow The Distributed

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\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 4 … 6 Next

Most Read

Central Banks

Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

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August 15, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

>

Follow The Distributed

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ADVERTISEMENT

\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 4 … 6 Next

Most Read

Central Banks

Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

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Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

>

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 4 … 6 Next

Most Read

Central Banks

Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

>

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 4 … 6 Next

Most Read

Central Banks

Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

>

Follow The Distributed

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\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 4 … 6 Next

Most Read

Central Banks

Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

>

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 4 … 6 Next

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Central Banks

Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

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Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

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December 23, 2024

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\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 4 … 6 Next

Most Read

Central Banks

Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

>

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 23, 2024

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By subscribing, you agree with our privacy and terms.

Type your email here

>

Follow The Distributed

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\n

Credit Suisse Challenges<\/h2>\n\n\n\n

In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 4 … 6 Next

Most Read

Central Banks

Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

>

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n

See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n

Credit Suisse Challenges<\/h2>\n\n\n\n

In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 4 … 6 Next

Most Read

Central Banks

Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

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August 15, 2024

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December 23, 2024

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Follow The Distributed

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\n

The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n

See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n

Credit Suisse Challenges<\/h2>\n\n\n\n

In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 4 … 6 Next

Most Read

Central Banks

Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

>

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n

The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n

The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n

See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n

Credit Suisse Challenges<\/h2>\n\n\n\n

In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n

The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n

The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n

See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n

Credit Suisse Challenges<\/h2>\n\n\n\n

In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 23, 2024

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\n

To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n

Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n

The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n

The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n

See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n

Credit Suisse Challenges<\/h2>\n\n\n\n

In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 4 … 6 Next

Most Read

Central Banks

Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

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August 15, 2024

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Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

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Follow The Distributed

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\n

The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n

To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n

Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n

The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n

The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n

See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n

Credit Suisse Challenges<\/h2>\n\n\n\n

In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

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December 23, 2024

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\n

FINMA Report <\/h2>\n\n\n\n

The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n

To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n

Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n

The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n

The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n

See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n

Credit Suisse Challenges<\/h2>\n\n\n\n

In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 4 … 6 Next

Most Read

Central Banks

Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

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Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

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Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

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Type your email here

>

Follow The Distributed

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\n

According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n

FINMA Report <\/h2>\n\n\n\n

The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n

To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n

Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n

The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n

The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n

See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n

Credit Suisse Challenges<\/h2>\n\n\n\n

In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n

According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n

FINMA Report <\/h2>\n\n\n\n

The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n

To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n

Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n

The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n

The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n

See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n

Credit Suisse Challenges<\/h2>\n\n\n\n

In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

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December 23, 2024

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\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14708,"post_author":"18","post_date":"2023-12-20 02:23:41","post_date_gmt":"2023-12-19 15:23:41","post_content":"\n

In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n

According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n

FINMA Report <\/h2>\n\n\n\n

The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n

To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n

Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n

The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n

The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n

See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n

Credit Suisse Challenges<\/h2>\n\n\n\n

In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 4 … 6 Next

Most Read

Central Banks

Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

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By subscribing, you agree with our privacy and terms.

Type your email here

>

Follow The Distributed

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ADVERTISEMENT

\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14708,"post_author":"18","post_date":"2023-12-20 02:23:41","post_date_gmt":"2023-12-19 15:23:41","post_content":"\n

In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n

According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n

FINMA Report <\/h2>\n\n\n\n

The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n

To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n

Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n

The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n

The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n

See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n

Credit Suisse Challenges<\/h2>\n\n\n\n

In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14708,"post_author":"18","post_date":"2023-12-20 02:23:41","post_date_gmt":"2023-12-19 15:23:41","post_content":"\n

In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n

According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n

FINMA Report <\/h2>\n\n\n\n

The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n

To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n

Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n

The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n

The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n

See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n

Credit Suisse Challenges<\/h2>\n\n\n\n

In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14708,"post_author":"18","post_date":"2023-12-20 02:23:41","post_date_gmt":"2023-12-19 15:23:41","post_content":"\n

In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n

According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n

FINMA Report <\/h2>\n\n\n\n

The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n

To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n

Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n

The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n

The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n

See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n

Credit Suisse Challenges<\/h2>\n\n\n\n

In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 4 … 6 Next

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June 21, 2024

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December 23, 2024

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\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14708,"post_author":"18","post_date":"2023-12-20 02:23:41","post_date_gmt":"2023-12-19 15:23:41","post_content":"\n

In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n

According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n

FINMA Report <\/h2>\n\n\n\n

The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n

To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n

Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n

The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n

The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n

See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n

Credit Suisse Challenges<\/h2>\n\n\n\n

In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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By subscribing, you agree with our privacy and terms.

Type your email here

>

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14708,"post_author":"18","post_date":"2023-12-20 02:23:41","post_date_gmt":"2023-12-19 15:23:41","post_content":"\n

In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n

According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n

FINMA Report <\/h2>\n\n\n\n

The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n

To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n

Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n

The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n

The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n

See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n

Credit Suisse Challenges<\/h2>\n\n\n\n

In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14708,"post_author":"18","post_date":"2023-12-20 02:23:41","post_date_gmt":"2023-12-19 15:23:41","post_content":"\n

In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n

According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n

FINMA Report <\/h2>\n\n\n\n

The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n

To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n

Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n

The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n

The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n

See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n

Credit Suisse Challenges<\/h2>\n\n\n\n

In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

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\n

The Fed's December meeting minutes are set to be disclosed at 2:00 p.m. ET, potentially providing information regarding the central bank's shift toward reducing interest rates. Although it's widely anticipated that the Fed will keep interest rates unchanged this month, traders have priced in a 65.7% probability of a 25 basis point rate reduction in March, according to CMEGroup's FedWatch tool.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Surged Significantly After The Release Of Lower Than Anticipated Inflation Figures<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Richmond Fed President Thomas Barkin, a voting member in the FOMC's rate-setting committee, said recently that the U.S. central bank is \"making real progress\" towards taming inflation and a soft landing seeming \"increasingly conceivable\". Encouragingly, the American Association of Individual Investors (AAII) Sentiment Survey indicated a surge in optimism among individual investors regarding the short-term outlook for the U.S. stock market, reaching its peak level in more than two and a half years.<\/p>\n\n\n\n

Despite this, JPMorgan Asset Management advises investors to be cautious due to potential recession risks. At the same time, analysts at Soci\u00e9t\u00e9 G\u00e9n\u00e9rale anticipate a turbulent 2024 for U.S. stocks, projecting fluctuations that could involve nearing recent highs, encountering declines, and subsequently rebounding.<\/p>\n\n\n\n

This week will witness a series of labor market data releases, culminating in the government's December employment report on Friday. These reports could significantly influence the forecast for the Fed's interest rate trajectory this year, prompting investors to scrutinize the data. Jeffrey Roach, chief economist at LPL Financial, added<\/a>:<\/p>\n\n\n\n

 \"The job market is cooling and we should see confirmation of that in this Friday\u2019s jobs report\"<\/em><\/p>\n\n\n\n

Following the progress of Wall Street's main indexes seen last year, investors are still optimistic about the prospect of another robust year ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession, especially as the Fed initiates rate cuts in the first half of 2024.<\/p>\n","post_title":"Wall Street's Main Indexes Fell At The Beginning Of 2024 year. Investors Locked In Profits After A Strong 2023 And Wait For The Federal Reserve's Meeting","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-fell-at-the-beginning-of-2024-year-investors-locked-in-profits-after-a-strong-2023-and-wait-for-the-federal-reserves-meeting","to_ping":"","pinged":"","post_modified":"2024-01-06 18:33:13","post_modified_gmt":"2024-01-06 07:33:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14888","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14708,"post_author":"18","post_date":"2023-12-20 02:23:41","post_date_gmt":"2023-12-19 15:23:41","post_content":"\n

In a detailed report released on Tuesday, the Swiss financial regulator, FINMA<\/a>, shed light on the near collapse of Credit Suisse in late 2022, advocating for increased regulatory powers to prevent similar crises in the future.<\/p>\n\n\n\n

According to a Reuters report, the regulator, which has faced criticism for its oversight of the bank, defended its actions during the crisis, stating that it took \"far-reaching and invasive\" measures to address deficiencies at Credit Suisse. Despite these efforts, the regulator admitted that its actions were insufficient to overcome fundamental issues in the bank's strategy implementation and risk management.<\/p>\n\n\n\n

FINMA Report <\/h2>\n\n\n\n

The report reveals that from 2018 to 2022, FINMA conducted 108 on-site reviews at Credit Suisse<\/a>, identifying 382 \"points requiring action,\" with 113 deemed high or critical risks. Despite these efforts, the regulator contends that its options and legal powers were exhausted.<\/p>\n\n\n\n

To prevent liquidity crises in the future, FINMA proposes the implementation of appropriate stress-testing processes and a heightened focus on the feasibility of banks' liquidity plans.<\/p>\n\n\n\n

Notably, FINMA expressed the need for stronger regulatory powers, including the ability to impose fines and the option to publicize details of enforcement proceedings. The regulator is also considering the adoption of a \"senior managers regime\" to delineate specific responsibilities for senior executives, mirroring a framework already in place in the UK.<\/p>\n\n\n\n

The report corroborates details previously reported by Reuters regarding Credit Suisse's precarious financial situation in the autumn of 2022. The bank was reportedly on the brink of collapse, considering drawing on 50 billion Swiss francs in emergency liquidity support from the Swiss central bank.<\/p>\n\n\n\n

The crisis prompted discussions of nationalizing Credit Suisse and injecting 50 billion francs into the bank to keep it afloat. However, the bank, eventually taken over by UBS, decided against this move due to feared negative signals.<\/p>\n\n\n\n

See Related:<\/em><\/strong> An Acute Case Of Bank Run; How Depositors Wiped Out US$75B From Credit Suisse<\/a><\/p>\n\n\n\n

Credit Suisse Challenges<\/h2>\n\n\n\n

In retrospect, Credit Suisse faced severe liquidity challenges in December 2022, with clients withdrawing 138 billion francs during the fourth quarter. The bank was on the verge of utilizing emergency liquidity support but refrained from doing so.<\/p>\n\n\n\n

The report discloses that FINMA had imposed higher liquidity requirements on Credit Suisse in response to funding pressures in 2020 and 2021. However, these measures proved inadequate, with the bank initially resisting some of the regulatory interventions.<\/p>\n\n\n\n

Only under repeated pressure did Credit Suisse establish a reporting system to monitor the implementation of required measures.<\/p>\n\n\n\n

The Swiss government, Swiss National Bank<\/a> (SNB), and FINMA intervened to support UBS's takeover of Credit Suisse, aiming to protect the bank's creditors and ensure financial stability.<\/p>\n\n\n\n

With FINMA overseeing Switzerland's globally important bank, UBS, which boasts a balance sheet nearly twice the size of the entire Swiss economy at $1.6 trillion, the call for regulatory reforms becomes even more pressing.<\/p>\n","post_title":"Swiss Watchdog FINMA Advocates For Stronger Powers After Credit Suisse's Near-Imploding Crisis","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"swiss-watchdog-finma-advocates-for-stronger-powers-after-credit-suisses-near-imploding-crisis","to_ping":"","pinged":"","post_modified":"2023-12-20 02:23:47","post_modified_gmt":"2023-12-19 15:23:47","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14708","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14205,"post_author":"18","post_date":"2023-11-10 00:50:07","post_date_gmt":"2023-11-09 13:50:07","post_content":"\n

In finance, a subtle yet crucial transformation has been taking place. It is a change that has the potential to impact the very core of the financial system. In Washington, D.C., regulators recently gathered to discuss a significant shift in how they approached risk and oversight.<\/p>\n\n\n\n

Regulatory Oversight<\/h2>\n\n\n\n

The stage was set at the Financial Stability Oversight Council (FSOC), a powerful entity led by the Treasury Department, with a mission to safeguard the financial system from potential threats. They agreed to ramp up their oversight of a group that had, until recently, operated in relative obscurity: non-banks.<\/p>\n\n\n\n

Non-banks, including asset managers and hedge funds, have gained prominence in the financial world. Concerns were growing about the risks they might pose to the system. But this wasn't a sudden decision; it was a revival of a tough regime that had been somewhat sidelined under the previous administration.<\/p>\n\n\n\n

The key change in the process was the designation of non-banks as \"systemically important financial institutions\" (SIFIs). This designation would subject them to greater oversight and stricter capital and liquidity requirements, potentially giving the U.S. Federal Reserve more say in their operations.<\/p>\n\n\n\n

The new approach marked a significant departure from the previous one, where regulators focused on policing risky activities instead of individual firms. Treasury Secretary Janet Yellen voiced concerns about this outdated perspective, stating that it was \"a flawed view of how financial risks develop and spread.\" <\/em>She emphasized that designating firms as SIFIs was one of several tools available to the panel.<\/p>\n\n\n\n

Under the revamped process, FSOC would identify potential SIFIs based on existing information and give the company a chance to respond. The company would then discuss the matter with its primary regulator and the FSOC. Only if two-thirds of FSOC's 10 members voted in favor would a non-bank be designated as a SIFI. These designations would be reviewed annually.<\/p>\n\n\n\n

The financial industry's reaction was swift and critical. Experts described the SIFI designation as a blunt tool that focused disproportionately on individual companies, rather than holistically assessing risk. Similarly, the Managed Funds Association, which represents hedge funds, argued that non-banks didn't pose the same risks as banks and criticized the designation process.<\/p>\n\n\n\n

The Way Forward<\/h2>\n\n\n\n

As the financial landscape undergoes these changes, the implications remain uncertain. However, the new approach is aimed at addressing the concerns about non-banks gradually taking on more financial activity, often with less transparency.<\/p>\n\n\n\n

Although the changes may create uncertainty in the market, the regulatory shift is aimed at maintaining the stability of the financial system. The financial industry may grumble, but this evolution reflects an ongoing effort to adapt to the ever-changing world of finance.<\/p>\n\n\n\n

So, what's next? Only time will tell how this new oversight regime will play out. As financial activity continues to evolve and adapt, regulatory bodies must remain vigilant to ensure the stability and security of the financial system.<\/p>\n\n\n\n

In this evolving financial landscape, one thing is certain: the watchful eye of regulators will continue to keep a close look on non-banks, as they play an increasingly significant role in the financial world. While the road ahead may be uncertain, regulators are committed to safeguarding the financial system from potential risks, wherever they may arise.<\/p>\n","post_title":"Regulators Strengthen Financial Controls As Non-Banks To Have Enhanced Oversight","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regulators-strengthen-financial-controls-as-non-banks-to-have-enhanced-oversight","to_ping":"","pinged":"","post_modified":"2023-11-10 00:50:16","post_modified_gmt":"2023-11-09 13:50:16","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14205","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":14113,"post_author":"14","post_date":"2023-11-05 22:55:54","post_date_gmt":"2023-11-05 11:55:54","post_content":"\n

This Tuesday, the Federal Reserve commenced a two-day gathering to discuss monetary policy. It is widely anticipated that after this meeting, the central bank will keep interest rates unchanged, as indicated by the CME Group's FedWatch tool.<\/p>\n\n\n\n

The crucial factors in determining the duration of the restrictive monetary policy will be the Federal Reserve's statements on Wednesday and the monthly job report scheduled for Friday. Hugh Johnson, chairman and chief economist of Hugh Johnson Economics, said<\/a>:<\/p>\n\n\n\n

\"Everyone's waiting for the Federal Reserve's decision and the employment report on Friday. Investors since late July have become worried because the possibility of a hard landing has increased and that's why today there's so much attention on the Fed.\"<\/em><\/p>\n\n\n\n

Sam Stovall, the chief investment strategist at CFRA Research, noted that while hardly anyone anticipates an interest rate increase in November, the likelihood of the Federal Reserve raising rates in December is increasingly uncertain. The latest economic data showed a solid increase in U.S. labor costs in the third quarter which added concerns that the Fed could keep interest rates higher for longer and even increase rates one more time by the end of 2023.<\/p>\n\n\n\n

This situation poses challenges for companies with substantial credit or variable interest rate loans. Increased borrowing expenses will negatively impact corporate earnings and deter businesses from seeking loans to support new ventures, potentially hampering economic growth and job opportunities. It is important to note that U.S. equities are tracking their third straight month of losses, with the S&P 500 and the Nasdaq on course for their biggest October percentage decline since 2018.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

The New York Federal Reserve's recession probability indicator indicates that there is a 56% likelihood of a U.S. recession occurring within the next year, although this figure has decreased from the 66% recorded in August. Even if the U.S. ultimately avoids a recession in the upcoming months, the Fed\u2019s aggressive monetary policy strategy from the past year and a half may only now be starting to hurt the economy.<\/p>\n\n\n\n

JPMorgan strategist Marko Kolanovic also predicts that the majority of negative consequences stemming from higher interest rates have not materialized yet. He points out a rising pattern in consumer loan delinquencies and corporate bankruptcies, indicating that these trends are likely to continue unless there is a reduction in interest rates.<\/p>\n\n\n\n

At the same time, the escalation of geopolitical uncertainties introduces an additional challenge and heightens the potential for unforeseen risks in both markets and economic performance. Considering all of these factors, the perspective is likely to stay cautious as long as interest rates remain significantly restrictive and the looming presence of geopolitical risks persists.<\/p>\n","post_title":"Investors Are Waiting For The Outcome Of The Federal Reserve's Monetary Policy Meeting. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"investors-are-waiting-for-the-outcome-of-the-federal-reserves-monetary-policy-meeting-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2023-11-05 22:56:37","post_modified_gmt":"2023-11-05 11:56:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14113","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13812,"post_author":"14","post_date":"2023-10-13 00:33:00","post_date_gmt":"2023-10-12 13:33:00","post_content":"\n

Shares on Wall Street are advancing after Atlanta Fed Bank President Raphael Bostic said this Tuesday that the U.S. central bank does not need to raise rates any further. The 10-year Treasury yield fell immediately off from its 16-year peak after his words, which is also positive because rising yields on long-term U.S. Treasury bonds directly influence financing costs for households and businesses.<\/p>\n\n\n\n

Last week, we had a situation when \"hawkish\" comments from Fed officials kept the 10-year Treasury yield buoyant, and the result was that investors shifted their money away from stocks, leading to a decrease in stock prices. Atlanta Fed Bank President Raphael Bostic also added that the U.S. economy remains healthy, and because of this, he sees no recession ahead.<\/p>\n\n\n\n

Financial markets welcomed this information, and investors now expect that the Fed is shifting away from the prospect of a November interest rate hike. CME's FedWatch tool reported that the chance of interest rates remaining unchanged in November and December meetings stays at around 88% and 74%.<\/p>\n\n\n\n

However, it is important to keep in mind that Federal Reserve Chair Jerome Powell warned several times in the last several weeks that the U.S. central bank is \"prepared\" to increase interest rates further if needed as it seeks to bring inflation down to its 2% target. Because of this, investors' focus will turn to inflation readings, including September producer price and consumer price indexes, for more clues on interest rates path.<\/p>\n\n\n\n

At the same time, the focus of investors remains on escalating tensions in the Middle East between Israel and the Palestinian Islamist group Hamas after Hamas' surprise strike on Saturday that killed hundreds of Israelis. The Israeli military has since said it called up an unprecedented 300,000 reservists and was imposing a total blockade on the Gaza Strip, raising expectations of a possible ground assault.<\/p>\n\n\n\n

The markets' initial reaction to the major geopolitical developments in the Middle East was a bout of risk aversion, and the latest news is that Israeli air strikes attacked Gaza, razing entire districts in the densely populated and impoverished enclave, filling morgues with Palestinians, including women and children, as it took \"revenge\" for a deadly weekend of Hamas attacks that triggered some of the worst blood-letting in 75 years.<\/p>\n\n\n\n

<\/figure>\n\n\n\n

John Praveen, managing director & co-chief investment officer at Paleo Leon, said that while the Fed's dovish comments are helping stocks and cryptocurrencies, the situation could easily change if, for example, the fighting between Israel and Hamas spread to other countries in the region. John Praveen, managing director & co-chief investment officer at Paleo Leon, added<\/a>:<\/p>\n\n\n\n

\"Everybody has one eye on the Middle East conflict, and if tensions escalate, equities will sell off in that instance because of increased uncertainty and risk aversion.\"<\/em><\/p>\n\n\n\n

Investors should keep in mind that stocks aren't the only assets that could significantly lose their value, and cryptocurrencies could also be in the situation to make an even bigger fall, especially if Bitcoin fell again below $25,000 support level.<\/p>\n","post_title":"Atlanta Fed Bank President Raphael Bostic Said The U.S. Central Bank Does Not Need To Raise Rates Any Further. What Does This Mean For The Stock And Cryptocurrency Market?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"atlanta-fed-bank-president-raphael-bostic-said-the-u-s-central-bank-does-not-need-to-raise-rates-any-further-what-does-this-mean-for-the-stock-and-cryptocurrency-market","to_ping":"","pinged":"","post_modified":"2023-10-13 00:33:21","post_modified_gmt":"2023-10-12 13:33:21","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13812","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":13731,"post_author":"18","post_date":"2023-10-08 01:00:05","post_date_gmt":"2023-10-07 14:00:05","post_content":"\n

In a world where digital payments are becoming the norm, privacy and data protection concerns have never been more critical. The recent push for a digital euro by the European Central Bank (ECB) has brought these concerns to the forefront, prompting consumer lobby group Finance Watch to call for stricter privacy safeguards.<\/p>\n\n\n\n

The digital euro is part of a global trend among central banks, including the Federal Reserve and the Bank of England, to stay ahead of technological advances in payments. While this move promises greater convenience and efficiency, it also raises important questions about personal privacy. Click here<\/a> to read more about the digital euro.<\/p>\n\n\n\n

Finance Watch, a European consumer group that conducts research and advocacy on financial regulation, recently published a policy paper highlighting the need for robust privacy and data protection measures when using a digital euro. Their key concerns revolve around maintaining the anonymity of cash transactions and preventing market concentration.<\/p>\n\n\n\n

While Finance Watch acknowledges the necessity of preventing money laundering and illegal activities, they argue that the proposed EU law leans too far towards security and lacks sufficient protection for user privacy. The proposed law provides higher levels of privacy for offline transactions, like using cash, but falls short in online transactions.<\/p>\n\n\n\n

The consumer watchdog proposes that the privacy and data protection standards for small, low-value online transactions should match those applied to offline transactions. This approach would ensure that users enjoy cash-like privacy regardless of how they use the digital euro.<\/p>\n\n\n\n

The European Commission has put forth a draft law to provide legal backing for the digital euro. However, critics fear that it might not offer the same level of privacy as traditional cash transactions. EU financial services chief Mairead McGuinness has emphasized the importance of a thorough and careful legislative process, urging against rushing the decision.<\/p>\n\n\n\n

The Bank of England has taken a different approach by initiating a national debate to address public concerns about a digital pound potentially enabling government surveillance. This approach reflects a growing awareness of balancing technological advancements with privacy rights.<\/p>\n\n\n\n

As we move towards a more digital economy, it's crucial for policymakers to carefully consider and address these concerns to ensure the protection of individual privacy in the digital age. The call from prominent quarters for stronger privacy safeguards serves as a reminder that, in this digital era, our privacy should remain a top priority.<\/p>\n","post_title":"Why \u201cFinance Watch\u201d Consumer Group Urges Stronger Protection For The Digital Euro","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"why-finance-watch-consumer-group-urges-stronger-protection-for-the-digital-euro","to_ping":"","pinged":"","post_modified":"2023-10-08 01:00:37","post_modified_gmt":"2023-10-07 14:00:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13731","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 4 … 6 Next

Most Read

Central Banks

Inflation’s Persistence Keeps Central Banks In Wait-And-See Mode

June 21, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

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Type your email here

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