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Financial Markets
Top stories summarized by our editors
10/15/2021

The clear consensus among Federal Reserve policy makers that it is time to start scaling back the central bank's bond buying program does not extend to what the Fed should do in response to the surge in inflation, or whether it should do anything at all. Over the past 24 hours, views expressed publicly by Fed officials range from serious concern about inflation to dismissal of current dynamics as a short-term trend that will fade away over time.

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Reuters
10/15/2021

Wall Street's soaring investment banking dealmaking more than made up for weak loan demand and low interest rates in the third quarter. Investment banking fees shot up 67% at Morgan Stanley, 52% at JPMorgan Chase, 39% at Citi and 23% at Bank of America.

10/15/2021

Simon Puleston Jones, former European head of the Futures Industry Association, has launched an online private marketplace for environmental, social and governance investments, tailored to the needs of institutional investors. The platform will follow criteria managed by the consulting firm Climate Solutions.

10/15/2021

As the yield on government debt edges higher, some major US banks are shifting cash into Treasurys. The change in strategy could increase bank earnings by several percentage points, analysts say.

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Reuters
10/15/2021

Morgan Stanley will launch a bond offering on the heels of a third-quarter earnings report which showed a 25% rise in year-on-year revenue to $14.75 billion, a move likely to be followed by other major banks eager to sell debt before interest rates rise significantly. The 11-year portion of the $5 billion bond will offer yields 1 percentage point above Treasuries, although the spread in early discussions stood at 1.15 percentage points, one source said.

10/15/2021

The Basel Committee on Banking Supervision said in a report that despite the challenges of the coronavirus pandemic its member jurisdictions are making progress toward full implementation of the Basel III bank capital standards. All jurisdictions have now adopted final rules for countercyclical capital buffers, the report said.

10/15/2021

A default on the US government's debt was averted when President Joe Biden signed into law a bill raising the cap to $28.9 trillion. The measure gives the government the ability to keep paying its bills until December.

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Reuters, The Hill
10/15/2021

The Securities and Exchange Commission is close to allowing exchange-traded funds investing in bitcoin futures to trade, sources said. The bitcoin ETF proposals filed by ProShares and Invesco are linked to futures rather than the cryptocurrency itself and were filed under mutual fund rules SEC Chairman Gary Gensler has said offer important investor protections.

10/15/2021

Most banks may be able to start using the Federal Reserve's new domestic standing repo facility as soon as early 2022, said Lorie Logan, an executive vice president at the New York Fed. Currently only Wall Street primary dealers that regularly act as counterparties to the Fed have access to the facility.

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Reuters
10/15/2021

The Securities and Exchange Commission voted to invite public comment on a proposed executive compensation clawback rule that it discussed in 2015 but never finished. The rule would increase the power of the SEC to require the clawback of executive compensation when a company is forced to restate its financial results due to a compliance failure.

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Reuters