Week InReview
Friday | Apr 6, 2018
Federal Reserve Bank of San Francisco President John Williams was selected to run the U.S. central bank's powerful New York branch, installing a monetary economist in Fed Chair Jerome Powell's inner circle and a banking-industry outsider to help oversee Wall Street (Bloomberg Quint | Apr 3)

State efforts on fiduciary standards slow
Activity at the state level to raise investment-advice standards has slowed recently, as a Maryland lawmaker withdrew a fiduciary provision from his bill and the timeline for a Nevada regulatory proposal remains uncertain. (Investment News | Apr 3)

New York Fed launches U.S. Libor contender, slow takeup seen
Publishing the rate is the first step in a multi-year plan to transition more derivatives away from the London interbank offered rate, which regulators say poses systemic risks if it ceases publication (Reuters | Apr 3)

Treasury meets with banks, trading firms as it weighs releasing more market data
The debate over making the data public divides the financial-services industry. In general, big banks favor keeping the data for regulators' use only, while high-speed traders and hedge funds support making it public. (The Wall Street Journal | Apr 2)

Liquidity regulation is back
The current liquidity-coverage ratio is the latest iteration of regulations that go back a century or more. Reserve requirements predate the Federal Reserve. (Money & Banking | Apr 2)
The Cyber Cafe
Cybersecurity news every Friday
Why notification overload is killing enterprise cybersecurity teams
Most security operations centers (SOCs) can only handle seven to eight incident investigations per day, and have little time for threat hunting.

Cybersecurity and the new era of space activities
Governments, critical infrastructure, and economies rely on space-dependent services - for example, the Global Positioning System (GPS) - that are vulnerable to hostile cyber operations. However, few space-faring states and companies have paid any attention to the cybersecurity of satellites in outer space, creating a number of risks.

Software asset management: A new defense against cybersecurity threats
Cyber criminals are opportunists who seek the path of least resistance. Rather than wasting efforts attacking hardened firewalls, they instead snoop out the often-overlooked back doors to a company's network, such as unsupported or unapproved software, abandoned user IDs, poor passwork protection, or the unmanaged server under an IT analyst's desk.
SEC cybersecurity needs more work
... internal watchdog says 
(Apr 3) -- The Securities and Exchange Commission's Office of the Inspector General said the agency is improving its IT security, but the program has not yet reached a level of maturity to be deemed effective, according to an audit report. The findings came after the SEC's September disclosure of a breach in its Electronic Data Gathering, Analysis, and Retrieval (EDGAR) corporate filings database and as the SEC works to launch a massive market-surveillance database known as the Consolidated Audit Trail. The IG's office made 20 recommendations in areas such as risk management, security training, and incident response.
Moody's warns on escalating CLO risks
Record $35 billion of CLOS issued in 1Q18
(Apr 5) -- One month after a U.S. appeals court freed CLO managers from risk-retention rules, Moody's Investors Service said that investors in collateralized loan obligations are agreeing to weaker protections in their securities as issuance heats up, giving them a heightened risk of losses if the market sours. Safeguards designed to ensure a minimum quality in the loans CLOs buy and package into bonds are eroding, making the assets backing the securities more vulnerable if market conditions change, Moody's said in a report.
Binge reading disorder
Hand-curated, chosen with love
Vice index shows cost of drugs, booze around the world
The cost of maintaining a drugs, alcohol and cigarettes habit got a lot more expensive in the U.S. last year, rising the most of almost anywhere in the world, the annual Bloomberg Global Vice Index shows.

The striking similarities between mortgage-backed securities and the 17th century financial system
The 2008 financial crisis echoed the Stuart dynasty economic fallout.

The world's most important number
Libor was vulnerable to being tweaked in self-serving ways: an interview with the author of  " The Spider Network: How a Math Genius and a Gang of Scheming Bankers Pulled Off One of the Greatest Scams in History ."
- Bloomberg View