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05/12/2011 | SIFMA

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European banks restructure foreign businesses
The Wall Street Journal (12/2)

  Washington Roundup  
  

House panel subpoenas MF Global's Corzine
The House Agriculture Committee subpoenaed former MF Global CEO Jon Corzine, forcing him to appear at a hearing this week about the collapse of the brokerage firm. "We agree that his testimony is essential to fulfill our objectives on behalf of our constituents and to complete the hearing record," said Rep. Frank Lucas, R-Okla., chairman of the committee. A House Financial Services subcommittee and the Senate Agriculture Committee plan to vote on issuing subpoenas to Corzine. The New York Times (tiered subscription model)/DealBook blog(12/2), Reuters(12/2), Bloomberg(12/2)

SEC to examine municipal advisers
The Securities and Exchange Commission will examine municipal advisers to ensure that they are not violating laws and rules governing municipal securities. Elaine Greenberg, head of the SEC's municipal securities and public pensions unit, declined to provide details about what would be covered in the examinations. The Bond Buyer (special access for readers of SIFMA SmartBrief)(12/2)

Commentary: Basel rules make financial system more vulnerable
Peter Wallison, a senior fellow at the American Enterprise Institute, explains capital requirements for financial institutions under Basel rules. He argues that the rules would make the broader system more vulnerable to a common shock. "This does not mean that all regulation is counterproductive," he writes. "Yet the way it is currently pursued under the Basel rules will -- through encouraging future common shocks -- make the financial system more, rather than less, vulnerable to systemic breakdowns." The Wall Street Journal(12/3)

Commentary: Central banks' move is well-intentioned blunder
Columnist Thomas G. Donlan argues that the U.S. and Europe are not learning from past mistakes, and are starting to repeat them. Meanwhile, some of the most influential central banks are starting to print money again, sparking a rally in the markets. However, the consequences of the central banks' action are likely to be detrimental and won't resolve problem, Donlan writes. Barron's (subscription required)(12/3)