Week InReview

Things that make you say hmmm...

Under European regulations, banks are required to charge explicit prices for research. U.S. regulations will also allow them to charge those prices. However, brokers claim an SEC technicality requires them to register with the agency as an investment adviser in order to sell stand-alone analysis, thus subjecting them to a much stricter level of oversight.

"The moves may disappoint investor advocates and some officials at U.S. pension funds because they've been urging the SEC to to go even further. They want the regulator to allow what's happening in Europe to also happen in the U.S. -- a system where investors can easily buy research from one brokerage, while paying another to execute trades."

Fri Oct 20, 2017
Let's recap
In case you missed it . . .
Disquiet rumbles over dumb indexing distortions fueling a classic bubble (Oct 19)

Investors brace for big drops in cruel world of rich assets
Investors worldwide face a grim dawn of low returns across debt and equity markets as early as next year, with rich valuations and feeble growth seen pushing gains below historic norms (Oct 19)

Why Wall Street's fear index remains calm
The Vix index is a 30-day measure and does not give weight to long-tailed risks (Oct 18)

How big is the risk of another Black Monday equities crash?
Thirty years on, the market is different but has similar characteristics, from high valuations to trading strategies that could accelerate a sell-off (Oct 17)

Mnuchin says will take on 'orderly liquidation' after FSOC report
The secretary of the Treasury said he expects to publish a much-anticipated review of the Financial Stability Oversight Council (FSOC) ahead of a review of special rules that would allow regulators to step in and unwind a troubled lender (Oct 13)
The Cyber Cafe
Cybersecurity news every Friday
Cybersecurity concerns continue to speckle remote-access compositions
A one-size-fits-all approach is dangerous. U se cases should define the methodology for your remote access.

Researchers uncover flaw that makes Wi-Fi vulnerable to hacks
Cybersecurity watchdogs and researchers are issuing warnings over risks associated with a widely used system for securing Wi-Fi communications after the discovery of a flaw that could allow hackers to read information thought to be encrypted, or infect websites with malware.

Pentagon turns to high-speed traders to fortify markets against cyberattack
Experts attend brainstorming sessions to identify how hackers might wreak havoc.
HUD Secretary in the House
GSE reform and credit risk on the agenda
(Oct 12) -- At a House Financial Services Committee hearing, Ben Carson, secretary of the Department of Housing and Urban Development, discussed housing finance reform, FHFA (Federal Housing Finance Administration), and Fannie Mae and Freddie Mac, saying HUD would be an "active participant" with other policymakers in housing finance reform. Carson said reforms should  provide access to credit to worthy borrowers, reduce taxpayer exposure to risk, and involve more private sector capital.
Binge reading disorder
Hand-curated, chosen with love.
'Psychopath' hedge fund managers make less money than nice guys
Being manipulative and mean isn't the secret to success, a new study by two psychology professors says.

A sense of humor could mean you're a healthier, happier, and smarter person
Albert Einstein attributed his brilliant mind to having a childlike sense of humor. Indeed, a number of studies have found an association between humor and intelligence .

The economist who realized how crazy we are: book review by Michael Lewis
Richard Thaler made the equations a lot more messy. Which is good.