Economy-LI

Despite market rebound, profits scant
6:57 pm
Mon November 10, 2014

Wall Street Bonuses Will Be Flat This Year

Trader Sean Spain works on the floor of the New York Stock Exchange, Monday, June 24, 2013.
Credit AP Photo/Richard Drew

A new survey finds that Wall Street bonuses this year will be flat despite strong gains in the stock market.

This comes as hundreds of new rules take effect pushing the industry away from making risky bets.

In the past those risky bets led to big profits and big bonuses. But the Dodd-Frank Wall Street Reform Act introduced rules requiring banks to keep more cash on hand and curb the kinds of complicated trading that led to the financial collapse in 2008.

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"hundreds of thousands may have been harmed"
2:12 pm
Tue October 21, 2014

NY regulators accuse top lender of repeated abuse

Bank regulators in New York are accusing the nation's largest subprime mortgage lender of errors that might have harmed hundreds of thousands of borrowers.

New York's Department of Financial Services accuses Ocwen Financial of backdating letters warning of foreclosure or unsuccessful loan modifications. This means that by the time a borrower receives a letter from Ocwen, it's already too late to do anything about it.

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$760M increase over 2013
5:52 pm
Thu October 16, 2014

SEC brings record fines for financial wrongdoing

In 2013, Securities and Exchange Commission (SEC) Chair Mary Jo White established a policy of enforcing low-level offenses to deter larger financial crimes.
Credit AP Photo/Carolyn Kaster

The Securities and Exchange Commission says 2014 has brought a record number of fines against traders and others who sought to mislead investors.

This year the commission brought an additional $760 million dollars in fines against wrongdoers, a 22 percent increase compared to year prior. Regulators attribute the increase to smarter use of data and analytical tools to analyze bad behavior.

Also this year, the SEC tried a new approach where more resources are devoted to small infractions in hopes of deterring larger crimes.

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Less stringent rules for startups
6:00 am
Wed October 15, 2014

Lawksy plans softer rules for Bitcoin

New York’s top banking regulator says he plans to relax pending rules set to govern Bitcoin and other virtual currencies. The more startup-friendly requirements come after criticism that the state has moved too quickly to regulate the new technology.

Futurists see virtual currencies as revolutionizing the financial industry the same way the Internet has revolutionized nearly everything.

New York was the first jurisdiction to introduce rules on Bitcoin. Regulators hope to mark the path for other jurisdictions to follow.

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"regulators are too slow to catch them"
9:47 pm
Wed September 17, 2014

SEC penalizes first high-frequency trader

May 7, 2010, file photo. Traders work on the floor of the New York Stock Exchange the day after the "Flash Crash" and The Dow Jones industrials dropped 1,000 points. The crash brought scrutiny to high-frequency trading and other computerized strategies that move buy and sell orders at blinding speeds.
Credit AP Photo/Richard Drew

The Securities and Exchange Commission (SEC) charged a New York trading firm with the largest fine ever for breaking rules designed to keep risky trades from unraveling the financial system.

It is also the first time the SEC penalized a high-frequency trader.

High-frequency traders, or flash traders, make millions of trades a minute. They are the focus of an ongoing debate over whether those trades make the market function better or exploit slower, traditional traders.

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