Fonetic Focus on Finance

Fonetic has officially opened for business in the U.S with the creation of a fully operational entity in New York designed to bring advanced voice analytics to Wall Street. – Bob’s Guide,   Finextra,   Waters technology,   Intelligent Trading Technology

 

Simon Richards, CEO, Fonetic USA has provided his insights into the significant challenges faced by the banking sector in light of new legislation, including the Dodd-Frank Act in the U.S. and the future MIFID II in Europe. Looking at technology and the role it can play in facilitating change, he highlights how it can be used not just as a compliance tool but as a business enabler as well. – Global Banking & Finance Review

 

Bank Fines

 

The U.S.’s second-largest bank, Bank of America, is paying $772 in the largest settlement regarding credit card “add-ons” won by federal regulators. The action comes as the Consumer Financial Protection Bureau increasingly exercises enforcement capabilities received as part of the Dodd-Frank regulatory overhaul.  - Newsday

 

Royal Bank of Scotland (RBS) has been fined HK$6m by Hong Kong regulators having failed to detect unauthorized transactions made by one of its traders. The move follows last year’s fraud conviction of former RBS trader, Shirlina Tsang, who was sentenced to 50 months in prison after being caught falsifying records of emerging markets trades. – BBC

 

The Attorney General’s office has announced a $7.5 million settlement with Bank of America Corporation’s former CFO, Joe L. Price, in connection with its merger with Merrill Lynch & Co. Senior executives at Bank of America failed to disclose knowledge of mounting losses at Merril Lynch ahead of their vote on a proposed merger. – The New York Times

 

Dodd-Frank

 

The head of Barclay’s US business has resigned as the bank prepares to make changes required by the Dodd-Frank law. Hugh (Skip) McGee is reportedly resigning because of the complexities associated with meeting the Dodd-Frank regulations requiring banks to ring-fence their investment-banking activities across the Atlantic in a holding company. – BBC

 

The U.S. Securities and Exchange Commission (SEC) has formed a group aimed at investigating private equity and hedge funds following Dodd-Frank requirements for the funds to be regulated; discovers that many firms face severe compliance shortfalls. – Huffington Post,   Wall Street Journal,   SWF Institute

 

Almost four years after it was signed into law, the Dodd-Frank Act remains a work in progress, according to law firm, Davis Polk & Wardwell LLP. As of April 1, only 52 percent of its 398 rules were completed. – Wall Street Journal

 

A state regulator has used the Dodd-Frank Act to enforce consumer protections for the first time. Benjamin M. Lawsky, the state’s superintendent of financial services, filed a lawsuit against an auto lender in New York, accused of violating provisions of the Dodd-Frank law, prompting speculation that the action could encourage other state regulators to follow suit. – The New York Times

 

With calls for reforms to the Dodd-Frank Act, a key House Republican has revealed his hopes that President Obama will work with Congress to reform parts of the Dodd-Frank law, outlining his perception that the marketplace is characterised by “tremendous uncertainty.” – The Hill

 

Since the 2010 enactment of the Dodd-Frank Act, the average federal bank regulator earns 2.7 times the average pay of a private banker. – Investors.com

 

Other Financial Sector & Policy News

 

Regulators in the EU have said that while new legislation in response to the financial crisis of 2008 will have a negative effect on the EU’s economic output of 0.3 percent per year, this will be offset by annual economic benefits of up to 1.1 percent of EU output. – Bloomberg

 

The U.S. Department of Justice and the U.K.’s Financial Conduct Authority are reportedly conducting join interviews of UK-based currency traders in connection with an investigation into traders’ alleged rigging of foreign exchange rates. – Reuters