A collection of stories from SmartBrief publications and around the web…
Rough week for FINRA: Mason Braswell at InvestmentNews took FINRA to task for the lack in transparency when it comes to firms reporting diversity data. But that was nothing compared to tag-team smack down FINRA absorbed from the Wall Street Journal and the Public Investors Arbitration Bar Association. WSJ went after the self-regulatory organization for not doing an adequate job of keeping track of brokers’ regulatory violations, criminal misconduct and other “red flags.” Then the PIABA followed-up by releasing a study that found FINRA “‘routinely’ strips out some possible red flags on brokers from its database in the information it makes available to investors.” So not only is FINRA not catching all the misconduct it should. It is also deleting some of the misconduct it actually does catch. Ouch!
Gone in 143 seconds: Asset managers have been in the headlines lately for the too-big-to-fail threat they pose, but clearinghouses aren’t too far behind them. The Financial Times details the case of KRX and how the Korean exchange handled the misadventures of HanMag Securities, a South Korean securities group that faced bankruptcy after being decimated by 143 seconds of erroneous electronic trades.
Banks make progress on Basel III: It looks like global banks are making progress when it comes to meeting Basel III capital requirements. In the first six months of 2013, the banks halved the shortfall they need to close to meet the Basel III basic capital requirements, which are scheduled to phase in fully by 2019. Worldwide, the gap stands at $79 billion, with large European banks accounting for more than half of that shortfall.
Milken says feds need to step back from mortgage market: U.S. housing policy in recent years has hurt the middle class, skewing priorities and increasing the burden on taxpayers, writes Michael Milken, chairman of the Milken Institute. Federal officials would do everyone a favor if they backed away from the mortgage market, Milken argues. “Investments in quality education and improved health will do more to accelerate economic growth than excessive housing incentives. That will give everyone a better chance to achieve the real American dream.”
Off Finance: Pamela Druckerman writes a witty piece for the New York Times about “What You Learn in Your 40s” … With less than 100 days to go until the World Cup kicks off, Team USA on Wednesday took on Ukraine in a match deemed as an opportunity for some U.S. players to prove their worth to coach Jurgen Klinsmann. In a dreary 2-0 defeat, many of the Americans seized the opportunity … showing Klinsmann why they should NOT be on the plane bound for Brazil.
Boca Bound: SmartBrief will be reporting and live-tweeting next week from the 39th Annual International Futures Industry Conference.