Hedge funds

The goal is to address an existing "bottleneck" in financing for small and mid-sized enterprises (SMEs) in the defense industry.

The transaction will free up as much as $500 million for loans in Latin America and the Caribbean to help alleviate poverty and protect the environment.

Federal Reserve Vice Chair for Supervision Michael Barr said in a speech Tuesday that banks might need to establish margin to counteract counterparty risks presented by private funds.

The key to the trade is that the instruments, worth about $20 billion in all, are pegged to the now-defunct London interbank offered rate, or Libor.

The U.K. manager's assets have declined from peak of nearly $20 billion before a spate of 2020 losses.

The Securities and Exchange Commission and the Federal Reserve have questioned prime brokers about the basis trade as well.

The loans coming across their desks include car debt and personal loans, from consumer lenders including LendingPoint, Best Egg and Upstart Holdings Inc., as well as regional banks.

Federal officials have questioned prime brokers about leveraged trading in government bonds by their fast-money clients.

The Financial Stability Oversight Council has struggled to find its footing since its creation in Dodd-Frank. The Treasury secretary has signaled a more aggressive role for the panel, including reviving its authority to target nonbank behemoths.

Yellen announced she has revived a hedge fund working group so agencies can “share data, identify risks and work to strengthen our financial system."

Treasury Secretary Janet Yellen said she prefers to have the Financial Stability Oversight Council flag hazardous activities by nonbanks rather than subject specific firms to heightened supervision.

AMC and American Airlines took advantage of surprise stock-price surges to cash out shares and raise liquidity for possible debt reduction — a massive stroke of good fortune for the companies as well as their creditors.

A low-rate environment has allowed companies in need of financing to avoid defaults or bankruptcy, making it difficult for credit managers to profit. At the same time, the broader market has provided far better investor returns over the past year, at least before the past week.

Regulators already finalized a rollback of the proprietary trading ban section of the rule but signaled then that their overhaul was not finished.

The agencies handed banks a significant victory when they finalized revisions to the Dodd-Frank proprietary trading ban, but officials also plan to re-propose changes to the “covered funds” section of the rule.

Wall Street’s push to clean up a $10 trillion corner of the derivatives market is getting poor reviews from an important audience: global financial regulators.