Regulation

Connecticut Attorney General Richard Blumenthal recently filed suit against a bank and local money manager who served as custodians for two feeder funds that invested with convicted Ponzi-schemer Bernie Madoff.

Large banks have repeatedly prevailed in battles to preserve federal preemption in Congress and the courts, but that victory string is likely to be broken by the regulatory reform bill being debated in the Senate this week.

The more things change, the more they remain the same. In the early 1980s, the nation faced a serious retirement challenge, with Social Security estimated to have unfunded liabilities of about $6 trillion and worries about whether the Greatest Generation would be able to afford its retirement.

In an ironic twist, the Fed Reserve — one of the most derided regulators for its failure to prevent the financial crisis — may emerge from regulatory reform with its bank supervisory powers intact and authority enhanced.

The banking industry is scrambling to devise a new strategy to weaken the regulatory reform bill after Republicans failed to cut a bipartisan deal before the legislation advanced to the Senate floor Thursday.

The Insured Retirement Institute on Thursday sent a “broad, comprehensive” response to the request for information on lifetime income that the U.S. Departments of Treasury and Labor recently issued.

The SPARK Institute filed a comment letter Thursday on the Employee Benefits Security Administration’s proposed guidance on 401(k) investment advice. SPARK’s concern is Department of Labor’s attempt to define acceptable investment practices and theory, instead of leaving the decision on what type of advice to offer, be it computer- or adviser-based, to plan sponsors and administrators.

WASHINGTON—Although some of the “most profound” proposals in regulatory reform made during the wake of the economic collapse are now not likely to happen, Richard Ketchum, chairman and CEO of the Financial Industry Regulatory Authority said Thursday that the financial services industry still has a responsibility to act aggressively at detecting fraud before it’s cleaning up the mess at the end.

Although some of the “most profound” proposals in regulatory reform made during the wake of the economic collapse are now not likely to happen, FINRA's Ketchum said the financial services industry has a responsibility to act aggressively at detecting fraud before it cleans up the mess at the end.

Most of the trades involved a single penny-stock company.