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December 5, 2008 Sign up Forward Archive Advertise News on the capital markets, securities and financial industry   Morning Bell    Securitization market faces significant challenges Because the largest buyers of securitized bonds are no longer buying and few new buyers are taking their place, the sector has taken a step backward. "We are back to where we were several years ago, with real investors who pay cash for assets [the only buyers]," said Sanjeev Handa of TIAA-CREF. The excess supply is pushing down the value of securities. "The problem is liquidity," said Cecilia Tarrant, Morgan Stanley managing director. "This may be a great price to buy these securities at. But most buyers [of triple-A securitized debt] were levered buyers, and these are now not around." Financial Times (free content) (12/4)   Video View    Bernanke says "more needs to be done" on foreclosures   Source: CNBC Despite good-faith efforts to stem the problem, the foreclosure rate is too high, harming both homeowners and the economy as a whole, Federal Reserve Chairman Ben Bernanke said. He told a Fed meeting on mortgage and housing markets that he wants to see policies to prevent foreclosures when there is hope of doing so. CNBC (12/4), Financial Times (free content) (12/5), Reuters (12/4), NYTimes.com (12/4) Data management has never been more complicated. Simplify it here. Download this Free Gartner Research report. The report — Gartner's Magic Quadrant for Data Loss Prevention (DLP), Content Monitoring and Filtering — answers key questions including how to evaluate different DLP problems and which solution providers have the most comprehensive offerings to meet a wide variety of DLP challenges.   Industry News    China tells U.S. to fix economic fragility Chinese officials urged their U.S. counterparts, including Treasury Secretary Henry Paulson, to stabilize the U.S. economy, protect Chinese investments and increase the savings rate in the U.S. "We hope the U.S. side will take the necessary measures to stabilize the economy and financial markets as well as guarantee the safety of China's assets and investments in the U.S.," said Wang Qishan, a vice premier. Paulson was in Beijing to discuss long-term economic issues between the two nations. Financial Times (free content) (12/4) Shareholders to vote on BofA's takeover of Merrill Lynch Merrill Lynch and Bank of America shareholders are set to vote today on the merger between the two companies. If approved in the separate votes, the deal is expected to close by the end of the year. Bank of America's takeover of Merrill Lynch illustrates the blurring of the lines between investment and commercial banks. The Wall Street Journal (tiered subscription model) (12/5) Editorial: N.Y. Fed pick will play a crucial role The New York Federal Reserve presidency may be one of the most important job openings in the world, but little attention is being paid to it as the media focuses on Cabinet picks being made by President-elect Barack Obama. Obama tapped the current president of the New York Fed, Timothy Geithner, to be his Treasury secretary. "In the current financial panic, the New York Fed has become more central than ever. From Bear Stearns to AIG to Citigroup, Mr. Geithner has been part of the triumvirate making seat-of-the-pants bailout decisions with Fed Chairman Ben Bernanke and Treasury Secretary Hank Paulson," the newspaper said. The Wall Street Journal (tiered subscription model) (12/5)   Regulatory Roundup  Fed officials consider unconventional steps While central banks around the world drop interest rates to battle the global downturn, the Federal Reserve is weighing its options. The Fed's target rate is already at 1%, so officials are looking into more unusual measures. Such efforts could include targeting rates it doesn't normally focus on, such as rates on Treasury bonds or consumer borrowing. The Wall Street Journal (tiered subscription model) (12/5) FASB sets July 1 for release of GAAP codification The Financial Accounting Standards Board will release codification of accounting standards on July 1. Once released, the codification will become the single official source of nongovernmental U.S. generally accepted accounting principles. "Preparers and auditors of financial statements need to familiarize themselves with the changes so that they are ready for the switch," FASB Chairman Robert Herz said. For a more detailed look at FASB's plan, see this Journal of Accountancy article. Financial Week (12/4)   Legislative Update  Dodd, Frank may block Paulson from remaining TARP funds Senate Banking Committee Chairman Christopher Dodd and House Financial Services Committee Chairman Barney Frank say they may not give Treasury Secretary Henry Paulson the remaining $350 billion from the economic rescue fund. "I would be a very hard person to convince that this crowd deserves to have their hands on the next $350 billion," Dodd said in reference to the Bush administration. "I am through with giving this crowd money to play with." Bloomberg (12/5)   Technology  After review, SEC approves NYSE unit's market-data fees The Securities and Exchange Commission has approved market-data fees proposed by NYSE Arca, a unit of NYSE Euronext. Lobbying groups had opposed the fees after SEC staffers signed off on them in 2006. Fees for market data make up a significant portion of income for exchanges. The Wall Street Journal (tiered subscription model)/Dow Jones Newswires (12/4)   Investor Trends  November passes without a single high-yield bond deal November marked the first month since March 1991 that there was not a single high-yield corporate bond deal. In 1991, the market was in shambles. The current drought signals that investors have "no appetite for risk." NYTimes.com/DealBook (12/4) Investors withdrew $12 billion from mutual funds last week Investors withdrew $12 billion from stock-based mutual funds last week. That more than erased the $10.4 billion investors contributed to mutual funds one week earlier. "Mutual fund money is performance following ... when the market goes down (investors) take their money out," said Vincent Deluard, a TrimTabs analyst. CNNMoney.com (12/4)   SIFMA News  SIFMA events: Your tickets to keeping abreast of the industry SIFMA conferences and events bring together policymakers, regulators and industry experts to examine and discuss the changing landscape of financial services. Make an investment by clicking here, to serve your firm and clients better by being part of these premier events. SIFMA is your powerful resource regarding the securities industry and global capital markets. SIFMA Resources SIFMA.org  |  Advocacy  |  Educational Programs/Conferences  |  Newsroom Legislative and Regulatory Activity  |  Member Committees  |  Newsletters   SmartQuote  I don't possess a lot of self-confidence. 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