Week InReview

One for the Ages

"... history has shown that tight trading ranges often get undone in a violent way. So daily moves of 1% or more in coming days are likely, even though they have been a rarity this year."

S&P 500 notches smallest trading range in 45 years
- The Wall Street Journal
Fri Sep 29, 2017
Let's recap
In case you missed it . . .
FSOC calls unusual last-minute meeting to rethink designation;  Fed Chair Yellen said to endorse change in AIG's status (Sep 28)

Unspent capital, cheap debt and highly favorable borrowing terms help fuel boom (Sep 28)

Fannie-Freddie overhaul near do-or-die with Corker stepping away
For nearly a decade, "wait 'til next year" has been the refrain for proponents of overhauling mortgage giants Fannie Mae and Freddie Mac. For U.S. Senator Bob Corker, arguably the biggest advocate of that push, it will either be next year or never. (Sep 27)

SEC, DOL working together on advisers' conduct standards
The SEC and the Labor Department are working "closely and constructively" to implement appropriate standards of conduct for financial professionals who advise investors, SEC Chairman Jay Clayton told the Senate Banking Committee; and SEC standards should be "clear and comprehensible to the average investor," consistent across retirement and non-retirement assets, and coordinated with the DOL and state insurance regulators (Sep 26)

Leveraged loans are back and on pace to top pre-financial crisis records
Investors worry this could pressure financial markets if global economic expansion fades (Sep 24)
The Cyber Cafe
New SEC unit will target cyber-related misconduct
(Sep 25) -- The Securities and Exchange Commission said it is creating a new cyber unit within the enforcement division, which will focus on wrongdoing such as market manipulation schemes that spread false information through social media, hacking to obtain nonpublic information and misconduct perpetrated on the dark web.

The SEC's Cyber Unit will focus the Enforcement Division's substantial cyber-related expertise on targeting cyber-related misconduct, such as:
  • Market manipulation schemes involving false information spread through electronic and social media
  • Hacking to obtain material nonpublic information
  • Violations involving distributed ledger technology and initial coin offerings
  • Misconduct perpetrated using the dark web
  • Intrusions into retail brokerage accounts
  • Cyber-related threats to trading platforms and other critical market infrastructure
Binge reading disorder
Hand-curated, chosen with love.
Treasure map of the ETF world revealed
Identifying institutions that own marketable securities is tough for asset managers.

Big investors want directors to stop sitting on so many boards
Governance advisers and even boards themselves say directors risk spreading themselves too thin.

How big banks became our masters
Rana Foroohar, an associate editor and global business columnist for the Financial Times, penned an OpEd piece on f inancial scandal and wrangles over financial rule-making.