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)