Week InReview
Friday | Nov 29, 2019
Tweet of the Week
in case you missed it...
When short-term borrowing costs spiked in September, it marked the culmination of long-term stresses that the Federal Reserve is now working to tame. The repo blow-up of 2019 set markets on edge and prompted the Fed to pump billions of dollars of emergency funding into the financial system. Here, we break down what went wrong, what happens next, and whether markets can avoid another cash crunch. (Financial Times | Nov 26) See also: NY Fed injects short-term liquidity into financial system

Only two out of the 12 regional Federal Reserve banks wanted to lower the rate commercial banks are charged for emergency loans ahead of the U.S. central bank’s last policy meeting, minutes from the discussion of the discount rate showed on Tuesday. (Reuters | Nov 26)

Spoofing, market manipulation, false reporting, and commodities fraud dominated CFTC enforcement over the past year, as the derivatives regulator filed a record number of parallel cases with the Justice Department. Nearly two-thirds of the Commodity Futures Trading Commission’s 69 enforcement cases in fiscal 2019 focused on those four areas, according to the agency’s second annual enforcement report released yesterday. (Bloomberg Law | Nov 26)

The SEC said Monday its members had voted to propose a new rule on the use of swaps, options, futures and other derivatives by mutual funds and exchange-traded funds. If enacted, the proposed rules would replace a patchwork of guidelines issued over recent decades to enable funds to work around a 1940 law that restricts their use. (The Wall Street Journal | Nov 25)

U.S. regulators are considering making it easier for Wall Street to issue exchange-traded funds that rely on derivatives to juice returns. Under a Monday proposal, firms would be allowed to sell some leveraged and inverse ETFs without seeking special approval from the Securities and Exchange Commission. (Bloomberg Law | Nov 25)
the cyber cafe
Ghost ships, crop circles, and soft gold: A GPS mystery in Shanghai
A sophisticated new electronic warfare system is being used at the world’s busiest port. But is it sand thieves or the Chinese state behind it?

Passwords should become a thing of the past. Here's why.
Most of the recent data breaches stem from stolen passwords . As digital platforms pile up gigabytes of data, including personal information and the credentials we use to get access to their digital services, the cost of attacks for hackers has decreased significantly. You can now buy login credentials to someone’s bank or Uber account on the dark web for as little as $7

The web has a padlock problem  –  and your internet safety is at risk
We've been taught to look out for that little padlock to ensure a website is secure. But it's dangerous to rely on just one detail.
—  ZDNet
binge reading disorder
Recession is edging closer. Pass the tequila.
Recession is very close to the U.S. In fact, it couldn’t be closer. Mexico is now technically in recession. By Mexican standards, this isn’t yet a serious contraction. And by anyone else’s standards, two quarters of marginally negative growth seem relatively painless. The country suffered vastly worse economic convulsions after a botched devaluation sparked the Tequila Crisis in 1994, and again after the Lehman Brothers bankruptcy in 2008.

You’re tracked everywhere you go online. Use this guide to fight back.
You can’t stop all of it, but you don’t have to give up. Here are some mildly terrifying things  I learned when I recently did an online privacy checkup: Google was sharing my creditworthiness with third parties. If you want Target to  stop sharing your information  with marketers, you have to call them. And, my favorite: If you would like Hearst, the publishing giant, to stop sharing your physical mailing address with third parties, you have to  mail a physical letter  with your request to the company’s lawyers.

Wall Street wades into sports gambling as legalization spreads
The line between trading and gambling has always been fuzzy. So now that 13 U.S. states have live legal sports betting and several more have approved it, following a 2018 Supreme Court  ruling , it’s natural to wonder if Wall Street will start looking for a piece of the action.
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