U.S. Lawmakers Scrambled to Secure a Deal on Raising the Debt Ceiling, with Time Running Short Before a Potential Default on August 2
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JULY 29, 2011 U.S. lawmakers scrambled to secure a deal on raising the debt ceiling, with time running short before a potential default on August 2. The Federal Reserve began to prepare guidance to banks on how to handle a potential default or credit downgrade. A congressional panel began looking into whether the Obama administration tried to unduly influence Standard & Poor's before the credit rater revised its outlook on the U.S. debt rating to negative. The SEC adopted rules that could help avoid a future flash crash, and Britain warned Germany and other European Union partners not to dilute new bank capital rules. TOP STORIES Vote delayed on U.S. debt bill as default date looms ....................................................... 6 Lawmaker probing if Treasury meddled in S&P rating .................................................... 6 SEC adopts large-trader reporting system ....................................................................... 7 UK warns against diluting bank capital rules ................................................................... 7 FINANCIAL SERVICES REGULATORY REFORM U.S. bank regulator nominees back new capital rules ..................................................... 8 Fed readies debt-limit guidance for financial firms .......................................................... 8 U.S. agencies look for credit rating alternatives .............................................................. 9 UK's Cable feels vindicated, now eyes bank reform -report ............................................ 9 CFTC to consider three final rules at Aug 4 meeting ....................................................... 9 EU seen imposing standards to avert trading glitches .................................................. 10 India to raise mandatory takeover offer threshold and regulate mutual fund distributors....................................................................................................................... 10 Regulators must risk more to push growth, says Greenspan ....................................... 10 South Korea set to deregulate to grow its own version of Goldman ............................ 11 New law to ease EU debt collection ................................................................................ 11 China to speed up village bank approvals ..................................................................... 11 ENFORCEMENT Lehman executives, auditor must defend investor lawsuit ........................................... 12 Lehman trustee appeals $1.1 billion win for Barclays ................................................... 12 Madoff trustee set back in lawsuits vs banks ................................................................ 13 UBS wins Madoff case transfer, GAO probes Picard ..................................................... 13 Fannie/Freddie regulator sues UBS on $900 million loss .............................................. 13 DoJ presses Wells Fargo on loans ................................................................................. 14 Lehman's "flip" appeal flops in landmark UK ruling ...................................................... 14 Broker settles with U.S. states in muni investigation .................................................... 14 Merrill Lynch units ordered by panel to pay $8.1 million ............................................... 15 Sky Capital founder guilty in boiler room fraud ............................................................. 15 German "mini Madoff" jailed for 10 years and 8 months ............................................... 16 STEC says SEC staff may recommend civil injunction .................................................. 16 Guilty ex-SAC exec no 'greedy yuppie' -lawyer .............................................................. 16 Trader to pay $1 million in metals futures case ............................................................. 17 South Korea warns UBS local unit for leaking clients' trading info .............................. 17 Harbottle, law firm News Corp says bungled inquiry ..................................................... 17 SUPERVISION UBS talking to regulators about CoCo alternatives ....................................................... 18 Credit Suisse sees robust CoCo market despite FSB snub .......................................... 18 Macquarie may face big-bank capital charge, says Moody's......................................... 18 UK to shine light on bank-insurer liquidity swaps ......................................................... 19 Fed orders RBS Group to improve its U.S. operations .................................................. 19 EU markets regulator calls for debt transparency at banks .......................................... 19 China unlikely to raise bank reserve ratio in August ..................................................... 20 South Korea to undertake stress test on banks' FX funding ......................................... 20 PE deals should bring long-term benefit, says Taiwan regulator .................................. 20 UK insurers set up register of bogus claimants ............................................................. 21 U.S. regulators close three small banks ......................................................................... 21 ACCOUNTING & FINANCIAL STANDARDS Doubts emerge over US move to global accounting ..................................................... 21 IASB seeks feedback on future accounting rules .......................................................... 22 More U.S. lawsuits target Chinese reverse mergers ...................................................... 22 UK company auditors told to stand up to banks ............................................................ 22 UAE president orders audit bureau shake-up ................................................................ 23 GOVERNANCE U.S. court shoots down SEC shareholder election rule ................................................. 23 European pay curbs to hit hedge funds, private equity ................................................. 24 EU Commission asks banks to reveal pay packages..................................................... 24 DERIVATIVES Asia may struggle to meet G20 derivative deadline, says ISDA .................................... 24 EU watchdog may ban some ETF retail sales ................................................................ 25 EXCHANGES & TRADING PRACTICES Hong Kong to continue showing firms' names during trading ...................................... 25 CME rivals sit pat on policies as US default looms ........................................................ 26 SGX proposes new algorithm for equilibrium prices ..................................................... 26 NYSE moves to delist Longtop Financial ....................................................................... 26 FUNDS MANAGEMENT Soros to return outsiders' hedge fund money, cites regulations .................................. 27 Senator Shelby says Soros hypocrite for reforms dodge.............................................. 27 Funds industry warns UK losing allure over tax, regulation ......................................... 27 FINANCIAL CRISIS & ECONOMY Bank CEOs warn "grave" consequences if no debt deal ............................................... 28 Bank cash cushions can soften U.S. credit blow ........................................................... 28 Bank trading slump, risk curbs to spark more European job losses ............................ 28 U.S. debt downgrade would hit repo market .................................................................. 29 Australian banks in good shape: central bank ............................................................... 29 TAX Business body warns no UBS tax deal for Credit Suisse .............................................. 29 Greece mulls retroactive levy for tax evaders ................................................................ 30 CME tax situation 'untenable,' may exit state ................................................................. 30 Philippines issues tax rules on REITs ............................................................................ 30 Czech government aims to eliminate dividend tax in 2013 ............................................ 31 CURRENCY Hong Kong central bank tweaks CNH rules for banks ................................................... 31 Brazil taxes derivatives to brake currency rally ............................................................. 31 China to press ahead with FX reserves diversification .................................................. 31 Japan eyes FX speculators ............................................................................................. 32 TRADE & CROSS BORDER UBS says granted some immunity in LIBOR probe ....................................................... 32 Putin secures WTO assurances from EU executive ....................................................... 33 India oil firms park money with central bank to pay Iran ............................................... 33 CORRUPTION U.S. says cooperating with China to repatriate graft fugitives ...................................... 33 UK fraud watchdog recovers 11 million pounds from Macmillan .................................. 34 Diageo settles U.S. civil bribery charges ........................................................................ 34 India cabinet drafts anti-graft bill, activists slam as weak ............................................