“FSA wants to vet top bank appointment shortlists - Forbes” plus 4 more |
- FSA wants to vet top bank appointment shortlists - Forbes
- Stocks In Neutral After Crossing 10,000 - KDKA
- Funding of New Consumer Agency Cloudy And Controversial - CNBC
- Job fair for people over 50 - Cincinnati.com
- Microsoft calls for new data technology trade rules - Telecom Magazine
| FSA wants to vet top bank appointment shortlists - Forbes Posted: 14 Oct 2009 10:51 AM PDT LONDON, Oct 14 (Reuters) - The Financial Services Authority (FSA) wants to closely vet senior job candidates when top banks draw up shortlists -- not after they pinpoint a preferred candidate -- Britain's financial regulator said on Wednesday. Since October 2008, when the FSA started scrutinising top banking candidates in the wake of the credit crisis, it has quizzed 172 candidates for top positions. Eighteen withdrew applications, it said. In a letter to 5,000 chief executives of financial institutions, the FSA said it expected to be engaged early in the recruitment process -- or companies risked appointment announcements being derailed. Although some compliance officers at banks broadly support the FSA efforts to scrutinise banks, others have accused the regulator of risking imposing unacceptable restrictions on business strategies, appointments and company independence. The FSA has demanded it interview top candidates for jobs including chairman, chief executive, finance director and risk director at key banks -- and supervise senior staff with so-called 'significant influence functions' (SIFs). 'One of the key questions we expect relevant senior management of a firm to be able to answer is: 'What are the circumstances under which the firm will fail?' 'In assessing competence, we will expect senior management to be able to demonstrate their understanding of the inherent risks in the business/markets and to articulate what plans are in place to mitigate the risk of failure,' the FSA wrote in the letter. A beefed-up FSA is riling parts of the financial industry as it slams tough new capital and liquidity requirements on banks, scrutinises appointments and attempts to both spearhead global attempts to curb bonuses and take on a greater enforcement role. 'The onus is on firms to ensure candidates applying for influential positions are fit and proper to perform the role,' said Graeme Ashley-Fenn, FSA director of permissions, decisions and reporting. 'Our individually tailored approval interviews will help us assess whether the individual has the right experience and understanding but also whether they will enhance the overall management strength and insight of the firm.' Financial institutions wanting to appoint top staff need to send an application to the FSA outlining role responsibilities, recruitment, interview and appointment processes and how they have ensured the candidate is fit and proper for the job. Interviews, which take place at the FSA offices, last about 90 minutes. Since Aug. 6, the FSA has also started interviewing staff at overseas parent companies, whose decisions are regularly taken into account by a UK-based subsidiary, as well as traders who are likely to exert 'significant influence' on a firm. (Reporting by Kirstin Ridley; Editing by Jon Loades-Carter) Keywords: FSA APPOINTMENTS/ (kirstin.ridley@thomsonreuters.com; +44 207 542 7987; Reuters Messaging: kirstin.ridley.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Neither the Subscriber nor Thomson Reuters warrants the completeness or accuracy of the Service or the suitability of the Service as a trading aid and neither accepts any liability for losses howsoever incurred. The content on this site, including news, quotes, data and other information, is provided by Thomson Reuters and its third party content providers for your personal information only, and neither Thomson Reuters nor its third party content providers shall be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. This content has passed through fivefilters.org. |
| Stocks In Neutral After Crossing 10,000 - KDKA Posted: 15 Oct 2009 08:05 AM PDT Stocks In Neutral After Crossing 10,000
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| Funding of New Consumer Agency Cloudy And Controversial - CNBC Posted: 15 Oct 2009 08:05 AM PDT With a key Congressional committee moving on legislation creating a powerful consumer financial products watchdog, the agency's vague and unusual funding structure is likely to draw greater scrutiny. "The whole issue of how it gets funded--how it fits into the appropriation process and whether taxpayers pay for it--all has to be worked out," says veteran banking industry analyst Bert Ely of Ely & Company. "To what extent is it supposed to cover all its costs or produce revenue that exceeds its costs?" Questions abound about the controversial agency, which was first proposed by the Obama administration in June and is meant to assume some of the existing regulatory responsibilities of the Federal Reserve as well as other entities. And buried under the financing discussions is the fundamental issue of whether Congress is encroaching on the central bank's independence. Unlike existing banking regulatory agencies, such as the Office of the Comptroller of the Currency, the CFPA will not be entirely funded by industry fees, known as assessments. It also wouldn't receive supplemental income via the normal Congressional appropriations process. What's more, who and what will be paying those assessment fees is still unclear. The House Financial Services Committee discussion draft of the bill simply states "any person who engages directly or indirectly in a financial activity, in connection with the provision of a consumer financial product or service … or in connection with the provision of a consumer financial product or service, provides a material service…." That casts a net beyond the typical financial sector. "The thinking in part is to assess non-bank financial institutions," said one knowledgeable Congressional source, ahead of the committee's markup Thursday and Friday. "Pay-day lenders, mortgage companies." Mortgage companies are definitely in. Not only are their products specifically mentioned in the bill, but the industry has been vilified for its predatory lending practices, the subprime mortgage meltdown and its contribution to the foreclosure crisis. Credit unions, say analysts, are very likely out. Credit card companies, given the recently passed credit card law, would presumably be in. But what about insurers? It gets complicated because five bank holding companies (JPMorgan Chase [JPM Loading... () "It becomes a huge issue: What industries, organizations are going to subject to it," says Ely. "It also becomes very much of a cost-shifting exercise" in that assessment fees by other agencies may either be shared and/or diverted. Nationally chartered banks, for instance, already pay assessment fees to the federal comptroller to cover safety-and-soundness exams as well as compliance activities. A similar arrangement exists on the state level. So would funding from the comptroller be diverted? Given the lack of detail at this point—more than usual for massive legislation—it's impossible to determine how many institutions would be covered, what the assessment rates would be and thus what percentage of the operating funds would be generated from that source. On top of that, all institutions, apparently, will not be treated equally, which would presumably require additional criteria and metrics. Fees will be "based on the size and complexity" of a covered entity, the draft bill states, but also "its compliance record." That sounds punitive, say analysts, and "highly unusual", according to one former Fed official. Analysts say an unusually high amount of detail will seemingly be left to the new agency's director. Fed Piggy Bank Highly unusual certainly describes the agency's other source of funding. The bill states that each year the Fed's "Board of Governors shall transfer funds in an amount equaling 10 percent of the Federal Reserve System's total system expenses (as reported in the Budget Review of the Board of Governors most recent Annual Report to Congress) to the [CFPA] Director for the purposes of carrying out the authorities granted in this title." That 10 percent presumably represents the Fed's operating costs for supervision and compliance activities of its consumer division, a good part of which entails implementing and enforcing the Community Reinvestment Act, according to people familiar with central bank's operations. (The new agency will be in charge of the CRA.) Based on the most recent report, system expenses, excluding the costs of printing and transporting the US currency, totaled $3.37 billion in 2008. Some $3.45 billion was budgeted for 2009. Ten percent of those levels amounts to $337 million and $345 million, respectively. Yet, there's no single line item in the budget review that fits the compliance description, making it difficult to extrapolate, and the Fed's consumer functions are carried out by both the board and the regional banks, further complicating the issue. The Fed did not respond to a request to break down its consumer protection functions, staffing levels or operating costs. "It is pulling ten percent out of the hat," says veteran economist David Jones, who has written several books about the central bank. "It's sort of an artificial construct." This content has passed through fivefilters.org.  This posting includes an audio/video/photo media file: Download Now |
| Job fair for people over 50 - Cincinnati.com Posted: 15 Oct 2009 07:51 AM PDT A job fair for people over the age of 50 is scheduled to be held Oct. 22 from 10 a.m. to 3 p.m. at Newport on Levee, 1 Levee Way in Newport. Participating businesses and organizations include Ajilon Staffing, American Red Cross, Fifth Third Bank, FranNet, Huff Realty, Indiana Wesleyan University, Kelly Services, National College, Northern Kentucky Community Action Commission and Primerica Financial Services. The Northern Kentucky Chamber of Commerce is collaborating with AARP to host the fair in conjunction with the Northern Kentucky Area Development Districts annual Senior Expo. Experts say older workers are staying in or rejoining the workforce for a variety of reasons, from keeping health coverage to making up for the gap in needed income not covered by pensions or other retirement income resources. Businesses interested in participating should call Tara Sorrell Proctor, (859) 578-6399, or visit www.nkychamber.com. Booth space is free to chamber members registered by Sat. Oct. 17. A $50 will be charged to non-members. This content has passed through fivefilters.org. |
| Microsoft calls for new data technology trade rules - Telecom Magazine Posted: 15 Oct 2009 06:54 AM PDT Microsoft calls for new data technology trade rules Rules need to keep up with Internet trading WASHINGTON (Reuters) - Countries need to forge new trade rules governing the movement of electronic data across borders as the world becomes increasingly connected, a Microsoft official said on Wednesday. As more and more software services are provided over the Internet, "people will be calling on computers located around the world," said Brad Smith, senior vice president and general counsel for the U.S. software giant. "We have a patchwork of laws around the world that is increasingly creating a very confusing almost quagmire for information providers," Smith said at the Global Services Summit -- a meeting that brought together banking, telecommunications, shipping and other service industry professionals. One country may insist that e-mails be kept for a year for security purposes while another requires they be erased after six months to protect privacy, he said. "If that's the case, it's very difficult to locate a data center in one country and provide that service to consumers in another country," Smith said. Technology will continue to change and "the trade rules will need to change in order for these benefits to continue to flow around the planet," Smith said. Former U.S. Trade Representative Charlene Barshefsky, in a speech to the same group on Tuesday, suggested the creation of a new Internet trade agreement to foster the delivery of software services across borders. Smith did not endorse that approach, saying a variety of mechanisms may be appropriate. Peter Cowhey, a senior counsel in the U.S. Trade Representative's office, told the service group the Obama administration was taking a comprehensive at trade rules governing information communication technology. There are a number of "barriers at the border" that potentially could be addressed through the World Trade Organization or bilateral forums, Cowhey said. Those include a conflict between globally coordinated standards for information communication technology and national standards some countries have pursued, he said. It also is important that legitimate efforts to boost cybersecurity are done in a way that maximizes global efficiency and commerce, Cowhey said. Consumer choice and data privacy issues, as well as the procedures that governments follow when they restrict access to global information services are other areas that might be ripe for international rule making, he said. This content has passed through fivefilters.org. |
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