Week InReview

"These plans would dramatically restructure Fannie and Freddie, and put in place a federal guarantee on certain mortgage securities. This protection would kick in after private investors have taken initial losses through the new "credit risk transfer" market. Under most of these plans Fannie and Freddie would still exist, but with a more limited role, perhaps as utility-like mortgage guarantors."

Aaron Back in the Wall Street Journal
Fri May 26, 2017
Let's recap
In case you missed it . . .
Other leaders won't 'gang up' on the new U.S. president; focus to be on terrorism and security, where all agree (May 25)

Former Securities and Exchange Commission chair Mary Jo White doesn't expect to see any big regulatory changes under the Trump administration, though she does believe there will be a "change in philosophy" (May 25)

FSOC reimagined as boon, not bane, for Wall Street
The council offers Mnuchin as its chairman a forum to hammer out a consensus about how rules are applied; he can't force regulators to change or rewrite rules, but will have ways of cajoling potential dissenters (May 24)
Repo clearinghouse adds buy-side in move to quash systemic risk
Firm talking with cash-lending investors seeking to join; program that would bring in money-funds is still in the works (May 23)
Government enforcers take aim at compliance officers
Profession fears it is being sacrificed over desire to punish individuals for misdeeds (May 22)
The Cyber Cafe
Cybersecurity news every Friday
Companies ramp up recruiting veterans as cybersecurity urgency grows
Many veterans have the cybersecurity skills and attitude to be successful in the public sector with the right support.

Leonardo to roll out anti-ransom tool after large-scale attacks
Defense organizations among customers to get the software; Rome-based company warned clients ahead of ransomware attacks

The wide-ranging impact of New York's cybersecurity regulations
New York's toughest regulations yet are now in effect. Here's what that means for your company.
Basel bank capital rules
Global deal within reach: committee official
(May 25) Global regulators are confident they will soon finalize a deal to revamp the contentious bank capital standards known as Basel III. William Coen, secretary general of the Basel Committee on Banking Supervision - who warned of the 'dark side' of long transitions - said in London that negotiators are moving forward with restrictions, one of which would  ensure that big banks don't understate risks. European and Japanese regulators oppose this 'output floor' on risk, which they claim would punish their banks. The U.S. has been the floor's most vocal defender.
FX code of conduct
BIS responds to recent scandals
(May 25) The Bank for International Settlements' Foreign Exchange Working Group, comprised of regulators and market participants, released the  FX Global Code  with 55 principles that cover ethics, transparency, governance, information sharing, electronic trading, algorithmic trading and prime brokerage. Development of the code began in May 2015, when the BIS governors commissioned a working group of the Markets Committee of the BIS to do two things: establish a single global code of conduct for the wholesale FX market and to come up with mechanisms to promote greater adherence to the code.
Binge reading disorder
Hand-curated, chosen with love
Torsken kommer nå!
This month the Norwegian central bank introduced a new 200-kroner note with a picture of a cod on it using this video. Robin Wigglesworth did a "quick and dirty" translation, although  "there are a number of rhymes and references to Norwegian popular culture that are impossible to convey to an international audience."

Torsken kommer nå!
"The cod is coming."

In Taormina, a playground for the jet set, Trump's worlds will collide
Despite the town's temporary transformation into a police state in paradise for the Group of 7 summit meeting, Taormina's postcard panoramas, its exaggerated Epcot Italian-ness and its reputation as the sun-drenched pleasure dome for reality TV stars, aging playboys and affluent Russians remain intact.

In case you want to feature a champagne cocktail at a Memorial Day brunch, here's one of our favorite recipes.