European Council President Donald Tusk has rejected the idea of a Brexit deal that lets the UK financial sector access the EU single market as it does now. Meanwhile, European Commission Vice President Jyrki Katainen says that the EU financial sector is prepared to keep running smoothly and that no service disruption is expected even if a "hard Brexit" occurs.
The deep-seated and fundamental problems that caused the financial crisis have been eliminated by reforms adopted by the Group of 20 nations, said Mark Carney, chairman of the Financial Stability Board and governor of the Bank of England. There are still some serious issues that need to be addressed, including the vulnerability of computer systems to cyberattacks and risks raised by financial technology, he said.
President Donald Trump has signed a bill to end a three-day shutdown of the government. Senate Democrats voted for an interim measure that funds the government through Feb. 8 after Senate Majority Leader Mitch McConnell, R-Ky., said he would allow a vote on an immigration bill in coming weeks.
The Senate has voted 84-13 to confirm Jerome Powell as chairman of the Federal Reserve. Powell will assume the duty when the term of Chair Janet Yellen ends Feb. 3.
Federal Reserve Chairman Jerome Powell says he expects the central bank to press ahead with interest-rate increases as it works to get inflation up to its 2% target. Gradual increases will support steady economic expansion and a strong labor market "as long as the economy continues broadly on its current path," he says.
The House has passed the final version of the tax bill after procedural issues forced another vote. The measure heads to President Donald Trump, but when he will sign it is unclear.
Funds sponsored by asset managers are going to come under close scrutiny from the Financial Stability Board, said Chairman Mark Carney. The FSB is looking at what funds can do to manage the risk of being hit by runs in times of market stress.
President Donald Trump nominated Jerome Powell, whom former President Barack Obama appointed as Federal Reserve governor in 2012, to be chairman of the central bank. If confirmed, Powell will succeed Chair Janet Yellen, whose term ends in February.
Harvey Pitt, Christopher Cox and Mary Schapiro, all former heads of the Securities and Exchange Commission, said at an industry conference that the SEC should write and enact a fiduciary rule putting clients' interest first. "It doesn't matter what you are called; it matters what you do," said Pitt, chairman from 2001 to 2003. "If people are giving advice, they should be held to the same standards."
British Prime Minister Theresa May said in a policy speech a Brexit deal must cover financial services. UK financial firms can do without EU passporting rights, she said, but market access between the UK and the EU should be based on regulatory outcomes.