Week InReview
Friday | Jun 14, 2019
Lord Keynes meets Christine Lagarde
The illustrati on above points to a  humorous conversation  — ' Lord Keynes Pays a Visit' —  envisioned by International Monetary Fund historian Atish Ghosh should John Maynard Keynes stop by the institution he co-founded some 75 years ago.
in case you missed it...
Help the administration overhaul mortgage-finance companies Fannie Mae and Freddie Mac, or he will do what he can on his own as director of the Federal Housing Finance Agency. Fannie and Freddie are critical to half the nation’s mortgages and have been under government control since 2008. For more than a decade, policy makers have tried and failed to return them to the private sector. Calabria is expected to send his ideas to Congress as early as this week. (The Wall Street Journal | Jun 12)

The SEC should deter bond dealers from using an “abusive” trading practice that hurts market competitiveness, the agency’s Fixed Income Market Structure Advisory Committee said. The tactic, known as “pennying,” describes a dealer sending a client’s request to sell a bond to the market and giving the customer the same or a slightly better price for it than the best bid out there. This use of “last look” in the auction process discourages competing dealers from making aggressive bids or even participating. (Bloomberg Law | Jun 11)

Bitcoin and its fellow cryptocurrencies have surged in popularity partly because they’ve offered a way to skirt the government oversight exercised over traditional financial systems. Well, get ready to kiss much of that autonomy goodbye. (Bloomberg Cryptocurrencies | Jun 11)

Some financial firms and Republican lawmakers are concerned that time is running out for US regulators to make progress in rolling back post-crisis financial rules under the 2010 Dodd-Frank Act before the country's 2020 election. Regulators say they are making changes as fast as they can. (The Wall Street Journal | Jun 10)

The Commodity Futures Trading Commission has done little to correct shortcomings in stress tests of clearinghouses, the CFTC's inspector general said in a report. "We also remain concerned that market participants may be given a misleading impression about the substantive quality and independence of CFTC's stress-testing reports and capabilities," the report said. The inspectors said they were “disappointed” that mid-level CFTC officials found responsible for “mismanagement and dysfunction” last year remain part of the stress-testing program. (MLex | Jun 10)
the cyber cafe
Hacker toolkits for sale
Organized crime groups are selling access to the computer networks of financial firms like Bank of America Corp. and hacking tools targeting these companies, according to a British researcher who posed as a buyer on several dark web marketplaces.

Secrets shared with CFTC may be vulnerable
Confidential market information collected from hedge funds and brokers by the main U.S. derivatives regulator is vulnerable to hacking because of the agency’s outdated computer systems, according to an internal watchdog.

Cybersecurity extends to apps service workers use
Maintenance and service workers in the field are increasingly using connected apps, which come with distinct cybersecurity risks. Companies can help themselves with layers of security, rigorous monitoring of use and a security design review, writes Mark Hearn of Irdeto.
binge reading disorder
10 things people in finance should never say
Any of us can lapse into lazy shorthand. But it is something best avoided: Use of trite or clichéd formulations neither reflects well on us, nor does it show respect for the reader or listener.

New study of old real estate bubbles (1582-1810) finds two surprising similarities with modern bubbles
Amsterdam had three large real estate bubbles from 1582 to 1810. The real estate market was entirely different 200-400 years ago but those Amsterdam bubbles shared at least two similarities with modern real estate bubbles.

The deal hidden in your 401(k)
Why don’t more people take advantage of it? The likely culprits are the inertia and myopia of savers and retirement-plan providers — as well as a possible conflict of interest at investment firms that are supposed to put their clients first.