Lawrence McDonald

Larry McDonald, Senior Director, Newedge USA LLC, says while he is bullish on U.S. financials this year, he believes they are currently overbought.  He explains why in 2012 the increased transparency and bank liabilities will give analysts more insight as to Wall Street’s earnings power.

Article By Yalman Onaran, Bloomberg U.S. regulators, required by Congress to remove credit ratings from banking rules, have devised a plan anchored in a Paris-based group’s rankings that assign zero risk to most European government debt. The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency proposed rules last [...]

Sharing his forecast for the new year and the sectors to watch, with Larry McDonald, Newedge Senior Director, who says utilities and financials will be the sectors to watch in 2012.

Provided By DC Tripwire  Yesterday the Federal Reserve Board of Governors issued a proposal on federal stability rules governing the nation’s largest banks and those institutions, which the Financial Stability Oversight Council (FSOC) will designate as systemically important. The impact of the proposal would govern from capital requirements to single-party credit exposures among the largest and [...]

Article By Marcy Nicholson and Frank Tang, Reuters U.S. commodity markets have shrunk almost 9 percent since MF Global’s collapse as farmers, investors and traders close out positions, according to a Reuters analysis of data that suggests there may be lasting effects from the industry’s most disruptive broker failure. While several different factors likely figured [...]

From my partner, DCTripwire.com: Issue:  This week the Federal Reserve approved the final proposed regulation on the rules for debit-card interchange fees on a 4-1 vote, with Governor Duke dissenting over concerns about community banks. Impact:  Under the proposed formula, the Fed would set a $0.21 base fee cap plus a $0.01 possible fee for [...]

From my partner, DCTripwire: SEC Adopts Three Proposed Rules under Dodd-Frank Including Incentive-Based Compensation This morning, the SEC voted to adopt three proposed rules including a controversial proposed rule regulating incentive-based compensation arrangements at firms with $50B or more in assets under management. The vote was 3-2, with conservative Commissioners Casey and Paredes dissenting. In addition [...]

Pressure Increases from House on Dodd-Frank Slowdown ·         Tuesday, two House committees held hearings regarding the quality of Dodd-Frank implementation of derivatives and commodities rules. Between the testimony of Members, industry executives, and the concerns of both SEC Chairman Schapiro and CFTC Chairman Gensler, it has become clear the FY08 funding [...]

From my partner, DCTripwire: Major Actions Last Week: White House Treasury and HUD released their GSE reform proposal, due under the Dodd-Frank Act. This week, President Obama continued promoting his innovation and entrepreneurship initiatives, giving a speech on the National Wireless Initiative at Northern Michigan University. On Tuesday, President Obama and Vice President Biden held a [...]

From my partner, DCTripwire: State of the Banking Industry, Winter 2011 This is the first of a regular series of updates which will track the most important Washington, DC policy issues facing the banking industry. Look for future updates in the Spring and Summer. Bottom Line: The banking industry’s profits are continuing to be squeezed [...]