Google is negotiating to invest in Symphony Communication Services, the messaging startup backed by major Wall Street financial institutions, sources said. Symphony is seen as a competitor to Bloomberg and Thomson Reuters, which also provide services to financial professionals.
Regulators must work harder to help individual investors appreciate the risks presented by new technologies that cybercriminals use to commit fraud, said Securities and Exchange Commission Chairman Jay Clayton. He said he plans to give cybersecurity a high priority in the SEC's enforcement actions.
The Financial Stability Board is poised to start phasing in its total loss-absorbing capital rules for the largest banks in the world in 2019, sources said. However, the FSB, which is led by the Bank of England's Mark Carney, has eased the requirements a bit, with major banks needing to hold capital and debt equivalent to 16%, but eventually increasing to 18%, of their risk-weighted assets. The leverage ratio requirement will increase from 6% to 6.75%, according to sources.
Bank of England Governor Mark Carney has told lawmakers that while he supports the majority of post-crisis rules, some might impede market functioning. "Some of the interaction between some of the regulatory decisions -- once you layer on top technological changes and other factors -- [means] there may need to be some adjustments," Carney said.
US Treasury Secretary Steven Mnuchin met with Bank of England Governor Mark Carney and discussed the US role in global financial regulations. "Secretary Mnuchin underscored that he looked forward to working with Governor Carney on international financial regulatory issues and noted that one of the administration's core principles for financial regulation is to promote American interests in international financial regulatory negotiations and meetings," according to a Treasury Department statement.
Congress should empower the Financial Stability Oversight Council to coordinate financial regulators when it comes to cybersecurity and other areas where they overlap, Treasury Secretary Steven Mnuchin told the House Appropriations Committee. The call comes despite efforts by Republican lawmakers to narrow the council's authority.
The Federal Reserve raised its benchmark interest rate to a range between 0.75% and 1%, its second rate hike in three months but only the third increase since the global financial crisis. Fed Chair Janet Yellen said the central bank will take a cautious approach to further rate increases because it isn't as optimistic about the growth ahead for the economy as some business executives and stock market investors.
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.