Federal Reserve Board to Become Fully Involved in Enforcement Decisions.

On February 27th, Reuters quoted Federal Reserve Board Chair Janet Yellen as telling the Senate Banking Committee that the Board will make changes to its enforcement policy so that the Board will be "fully involved in important decisions." Yellen Testimony.


Circumstantial Smoke.

On February 27th, Bloomberg reported a study conducted by an Emory University accounting professor found that SEC employees were more likely than the general public to sell shares of companies under investigation. The data analyzed for the report did not indicate whether the employees had access to upcoming agency action nor did it show whether the employees made or lost money. Nevertheless, "It does suggest it is likely, or probable, that something is going on." Circumstantial Smoke.


18 Firms Suspend Participation in Analyst Surveys.

On February 26th, New York Attorney General Eric Schneiderman announced interim agreements with 18 financial firms to end the practice of providing certain clients with early access to analyst sentiment. New York Attorney General Press Release.


Europe Adopts New Rules for Fund Managers.

On February 25th, the Financial Times summarized the new rules for fund managers agreed upon by the European Parliament. The rules will be effective in 2016. New Rules.


New Bank Leverage Rules Almost Ready.

On February 25th, Reuters summarized the comments of FDIC Vice Chairman Thomas Hoenig. Hoenig told reporters that regulators have almost finalized new leverage rules for banks. The final rules will closely follow those proposed in August, 2013. Leverage.


Systemically Important Effort.

On February 24th, Bloomberg described the lobbying efforts of asset managers as they try to keep the Financial Stability Oversight Council from designating them as "systemically important." Lobbying.


Arbitrary Behavior.

On February 24th, Reuters detailed the allegations a former Financial Industry Regulatory Authority deputy regional director has made in a wrongful discharge lawsuit she has filed against FINRA. Among other things, the plaintiff alleges inappropriate behavior by arbitrators and age discrimination. Arbitrary Behavior.