Morning Bell

G-20 officials say euro-zone rescue fund must be increased
Finance ministers from the Group of 20 nations are calling to bolster the size of the euro-zone's rescue fund. But German Finance Minister Wolfgang Schaeuble warned that the European sovereign-debt crisis won't be resolved by increasing the fund or printing more money. "Economic stimulus is ineffective in the face of major structural shortcomings," Schaeuble said. "The strategy of piling up more debt will stunt rather than stimulate growth in the long run." Financial Times(tiered subscription model)(26 Feb.), The Wall Street Journal/Dow Jones Newswires(25 Feb.), The Telegraph (London)(26 Feb.)

Currency volatility remains a concern among G-20 leaders
Officials attending the weekend's Group of 20 meeting discussed their concerns about volatility in currency markets, but the issue wasn't the focus. "The debate has been dominated by euro-zone issues, but currency volatility has been discussed and may be included in the communique along with high oil prices," said one G-20 official. "The yuan and the yen were not specifically discussed. The yen's fall lately is seen as normal. So currencies were not at centre stage." The Wall Street Journal/Dow Jones Newswires(26 Feb.)

Industry News

Transaction tax would hit asset management hard, group warns
An industry group estimated that if the EU's proposed tax on financial transactions were in place last year, it would have cost the asset-management industry about €38 billion. Financial Times (tiered subscription model)(26 Feb.)

Volbroker paves the way for a currency-volatility index
Volbroker, a platform for trading foreign exchange options, is starting to publish information about the volatility of seven currency pairs. The move clears the way for a volatility index for currencies. "By creating an independent, reliable reference point that the market can rely on, products such as volatility indexes and cash-settled forward-volatility agreements can be created and expanded," said Terry Benson, Tradition-ICAP's global head of business development. Financial News Online (U.K.) (subscription required)(27 Feb.)

Flottement autour du renforcement du fonds de secours européen

L'agenda Europe du 27 février et 2 mars 2012

Le Bundestag devrait approuver le deuxième plan d'aide à la Grèce

Morning Bell

Foreign governments continue to pressure U.S. on Volcker rule
Regulators and central bankers from the U.K., Canada and Japan have already voiced concerns with U.S. officials about the Volcker rule, and other foreign entities are expected to follow suit. The European Commission reportedly plans to speak with officials at the Treasury Department. Rob Toomey, managing director and associate general counsel at SIFMA, said the group backs calls to exempt sovereign-debt trading. "We spot-on agree with the positions taken by these foreign authorities -- how they are viewing the restrictive interpretation of market making and how that impacts their debt," Toomey said. See SIFMA's Volcker Rule Resource Center, including two recent studies on the impact of the proposed rule. IFLR.com (subscription required)(2/7)

Industry News

ISDA and SIFMA ask judge to suspend position limits rule
ISDA and SIFMA asked a federal judge to suspend a Commodity Futures Trading Commission rule that limits commodity speculation. "Compliance efforts will include restructuring of corporate relationships and divestment -- irreversible changes in ownership," Eugene Scalia, a lawyer for the associations, wrote in a court filing. "These costs are being incurred now and will continue to rise absent a preliminary injunction, and they will be impossible to recoup if the rule is invalidated -- as it likely will be." Bloomberg Businessweek(2/7), Reuters(2/7)

FinCEN demands anti-money-laundering programs from nonbank lenders
The Financial Crimes Enforcement Network is requiring nonbank mortgage lenders to develop anti-money-laundering plans and file reports about suspicious activities. FinCEN Director James H. Freis Jr. said the final rule closes a gap in regulations. SIFMA AML 2012is your opportunity to hear from FinCEN officials, other top federal regulators, and experts from across the financial services industry. Register today. American Banker (free registration)(2/7)

Muni sector largely unaffected by European crisis, Moody's says
A Moody's Investors Service report says the European sovereign-debt crisis has not significantly affected the credit quality of the U.S. municipal sector. "The U.S. municipal market's most direct links to the credit challenges faced by European governments and banks is through the issuers' exposure to material counterparty risk," said Tim Blake, managing director at Moody's. "These exposures are low in the aggregate but are material for a small number of issuers and such risks are already incorporated in our municipal ratings." The Bond Buyer (subscription required)(2/7)