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Fed announces additional round of bank stress tests in response to Covid-19

The continued uncertainty around the Covid-19 pandemic has prompted the US Federal Reserve Board to announce another round of bank stress tests to see how large banks stand up against two scenarios featuring severe recessions. 

FSOC warns over Fannie Mae and Freddie Mac financial stability threat

The government sponsored enterprises (GSE) Fannie Mae and Freddie Mac could threaten financial stability and may need more capital according to the Financial Stability Oversight Council (FSOC). 

SEC chairman believes SPACS offer healthy competition to IPOs

Special purpose acquisition companies (SPACS) accompanied by adequate disclosures offer healthy competition to traditional initial public offerings (IPOs), said the chairman of the US Securities and Exchange Commission (SEC), Jay Clayton.

Fed extends capital conservation measures for banks

For the fourth quarter of this year, banks with more than $100bn in total assets will be prohibited from making share repurchases, the US Federal Reserve said in a statement.

Money market funds potentially face more rules

New rules for money market funds could be in the works following comments from deputy US Treasury Secretary Justin Muzinich that the reforms dating from the 2007-9 global financial crisis may not go far enough. 

Moody’s says payment holidays cloud bank credit quality assessments

Large volumes of deferrals on debt repayments granted by banks to borrowers is masking the true credit quality of these institutions, Moody’s Investors Service said in a report, warning that it expects delinquencies to increase rapidly as these measures and government support schemes wind down. 

SEC sets up emerging risks detection unit

The US Securities and Exchange Commission (SEC) has put together a new unit called the Event and Emerging Risks Examination Team (EERT) tasked with detecting emerging threats. 

CFTC votes to reduce its international oversight

Commissioners at the US Commodity Futures Trading Commission (CFTC) voted on July 22 to reduce oversight of derivatives trades to mostly US entities and passed a second vote on capital requirements for traders involved in bilateral swaps transactions. 

SEC allows companies to raise capital on NYSE through direct listings

Companies will be allowed to raise capital through direct listings on the New York Stock Exchange (NYSE) following a ruling by the US Securities and Exchange Commission (SEC).

US Fereral Reserve

US Fed stress tests criticised for being confusing and inadequate

In recent years, stress tests by the US Federal Reserve have been relatively incident free, but this year’s exercise has run into sharp criticism in some quarters including from a former Fed member