Week InReview
Friday | Jul 17, 2020
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Get ready for your dog's separation anxiety.
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Dogs have become “overly bonded” to their human companions. They’re more reliant on our presence to stay calm because, for the past four
months, we’ve been around all the time. Dogs signal this dependency when they panic after you leave the room or, god forbid, the house. This phenomenon must be addressed now, long before you return to the office, to avoid doggie meltdowns.
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Bloomberg Businessweek
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Is America heading for a V-shaped economic trajectory after the Covid-19 shock? Or does a U, W – or dreaded L – shape loom instead? That is the question preoccupying many investors – particularly since the equity markets have recovered with a remarkable V shape. But looking at these Roman letters might actually miss the point. (Financial Times – opinion | Jul 16)
A top Federal Reserve official is issuing a warning about fast-growing and largely unregulated shadow lenders: Nonbanks were a big factor in why central banks had to save markets earlier this year, and much more needs to be done to assess the risks posed by the sector, Federal Reserve Vice Chair Randal Quarles said. (Bloomberg Economics | Jul 15)
The U.S. Commodity Futures Trading Commission is examining disclosures by managers of commodity funds that are popular with retail investors. Heath Tarbert, who was appointed chair a year ago, said he was concerned that investors in commodity exchange traded funds were at times not provided with up-to-date information on the investments and strategies pursued by the funds’ managers. (Financial Times | Jul 14)
John Paulson, Stanley Druckenmiller, and George Soros are among billionaire investors who would no longer have to reveal which stocks they own under a U.S. plan to ease disclosure rules — hardly the smaller fund managers that regulators say the overhaul is supposed to benefit. They are far from alone, as other Wall Street icons below that level include Louis Bacon, David Tepper, David Einhorn, and Paul Tudor Jones. (Bloomberg Markets | Jul 14)
The coming earnings season poses a big test for investors and analysts, who say they are flying blind like never before. More than 180 companies in the S&P 500 have pulled their earnings guidance in the wake of the economic crisis wrought by
the Covid-19 pandemic
, limiting the visibility of investors. That has led to the widest dispersion in earnings estimates among analysts since at least 2007. (The Wall Street Journal | Jul 12)
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FSOC starts review of secondary mortgage market, FHFA says
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(Jul 14) — The Financial Stability Oversight Council announced Tuesday that it will begin an activities-based review of the secondary mortgage market, the Federal Housing Finance Agency said in a
statement
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- FHFA Director Mark Calabria said he applauds Treasury Secretary Steven Mnuchin, who leads FSOC, for initiating the review, according to his statement.
- “As demonstrated by the 2008 financial crisis and again by Covid-19, Fannie Mae and Freddie Mac must be well capitalized in order to support the mortgage market during a stressed environment,” Calabria said.
- The FSOC review will assess risks that secondary mortgage market poses to financial system and the efficacy of “various risk mitigants,” the FHFA said.
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(Jul 14) — U.S. Treasury Secretary Steven T. Mnuchin on Tuesday convened a closed meeting of the Financial Stability Oversight Council by telephone. The council discussed developments related to Covid-19 and its impacts on financial institutions and markets. In particular, council members shared information about actions they are taking to monitor the financial system.
In addition, the council heard an update from staff regarding an activities-based review of secondary mortgage market activities. The council also received an update regarding the Federal Reserve Board’s recently announced stress test results, including the additional Covid-focused analysis conducted by the board.
The council voted to approve the
minutes
of its May 14, 2020 meeting. Meeting minutes for the
most recent FSOC meeting
are generally approved at the next meeting and posted online soon afterwards.
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The top cybersecurity news sources you could be reading
Not a day passes without news of a major ransomware attack or phishing scheme. Businesses large and small now must learn the intricacies of data breaches and the dark web, negotiating with hackers, buying cyberinsurance and training employees on the best cyberhygiene.
SEC issues ransomware alert
The Securities and Exchange Commission’s Office of Compliance Inspections and Examinations just released a
risk alert
warning advisors and broker-dealers to immediately review their cybersecurity controls, as one or more threat actors have used phishing and ransomware measures to penetrate financial institution networks, OCIE “has observed ransomware attacks impacting service providers to registrants.” OCIE urged SEC registrants to monitor the cybersecurity alerts published by the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA), including the updated alert
published on June 30
relating to recent ransomware attacks.
SAP issues fix for vulnerability affecting thousands of customers
Enterprise software maker SAP SE said a patch released Tuesday should fix a problem that could have let hackers take control of widely used applications. The Department of Homeland Security called the bug, known as Recon, a
“critical vulnerability”
and urged customers to apply SAP’s update immediately.
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MORE CYBER SECURITY NEWS HERE
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Women’s careers could take long-term hit from Covid-19 pandemic
Juggling work and family has never been easy. Under pandemic conditions, some women say it is proving impossible. The work-from-home balancing act that so many parents are contending with is hitting a tipping point, as schools sort out how to start the impending academic year in August.
Working from home could mean working remote from Barbados
Dubbed the “Barbados Welcome Stamp” and launching this week, the program will allow visitors to stay on the Caribbean island visa-free for up to one year. The aim is to attract remote workers, with a bill to be introduced in Parliament by the government that will remove the local income taxes that normally kick in after six months.
The math of social distancing is a lesson in geometry
Sphere packing might seem like a topic only a mathematician could love. Who else could get excited about finding the most efficient way to arrange circles in the plane, or spheres in space? How to safely reopen offices, schools, and other public spaces while keeping people six feet apart comes down to a question mathematicians have been studying for centuries.
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