SEC Proposes New Requirements to Enhance Short-Term Borrowing Disclosure

On Friday, September 17, 2010, the SEC proposed new rules requiring public companies to disclose information regarding short-term borrowing.  The new rules are designed "to enable investors to better understand whether amounts of short-term borrowings reported at the end of reporting periods are consistent with amounts outstanding throughout the reporting periods."  Enhanced disclosure would be included in the Management's Discussion and Analysis of Financial Condition and Results of Operations section of a public company's quarterly and annual reports and would include quantitative information for each type of short-term borrowing used as well as additional information to provide a context for the quantitative data.

Read the SEC Press Release 

Secretary of the Treasury Designates Transfer Date for Bureau of Consumer Financial Protection

The Secretary of the Treasury recently designated July 21, 2011 as the date for the transfer of the consumer financial protection functions currently housed in various existing financial regulatory agencies to the Bureau of Consumer Financial Protection.  The new Bureau was established under the recently enacted Dodd Frank Wall Street Reform and Consumer Protection Act.

Read the Notice in the Federal Registrar 

European Commission Proposes New Regulation Regarding OTC Derivatives Market

On Wednesday, September 16, 2010, the European Commission proposed new regulations aimed at "bringing more safety and more transparency to the over-the-counter (OTC) derivatives market."  The new regulations are intended to increase transparency, reduce counterparty risk, and reduce operational risk.  The new regulations would apply to financial institutions and non-financial institutions that "have large positions in OTC derivatives." 

Read the European Commission Press Release 

European Union Endorses Reformation of a Framework for Financial Supervision

On Tuesday, September 7, 2010, the European Commission endorsed an agreement with the European Parliament aimed at reforming the framework for financial supervision.  The proposed reforms will create a European Systemic Risk Board (ESRB), providing "macro-prudential oversight of the financial system and three European authorities for the supervision of the banking, insurance, and securities industries.

United Kingdom Treasury Launches Consultation on Investment Firm Insolvency

On Thursday, September 16, 2010, the United Kingdom's Commercial Secretary to the Treasury, Lord Sassoon, proposed in a consultation paper a new special administration regime targeting investment firm insolvency.  The new regime would emphasize the objectives of returning client assets, engaging with market infrastructure bodies and authorities, and maximizing returns to creditors.