Carol E. Curtis

A Case Study in Manipulating the System

June 2, 2010

Buried in Wednesday’s Financial Crisis Inquiry Commission hearing was a telling vignette of just how off-kilter rating systems got at Moody’s Investors Service, one of the Big Three credit rating agencies that together control 90 percent of the market. Mark Froeba, a lawyer and former Moody’s senior vice president for the rating of derivatives in the United States, was on the final panel of the three-panel hearing focusing on the credibility of credit ratings at Moody’s.…

All Eyes on the Chief Compliance Officer

May 26, 2010

Three words keep cropping up in the financial reform package passed by the Senate on May 20: Chief Compliance Officer.

Hedge Fund Registration: Drilling Down to the Cost

May 19, 2010

Registration of hedge fund advisers is a virtual certainty under current financial reform proposals. So key questions for fund advisers are: How much will it cost me? And what will be the impact on systems, operations and technology?

Next Up To Register: Advisers to Private Equity, Venture Capital Funds

May 12, 2010

Until now, advisers to private equity and venture capital funds thought they were home free when it comes to registering with the Securities and Exchange Commission.

Hedge Fund Expertise Moves Down Market

May 5, 2010

Sophisticated hedge fund technology is moving down to a level where small- and medium-size investment advisers can use it.

Archiving Obligations Extend Beyond Email

April 28, 2010

Some experts say that if Goldman had used some of the newer forms of e-communication, it might have been spared the public reading of embarrassing e-mails.

Winners and Losers in the Derivatives Clearing Debate

April 21, 2010

Winners include clearing houses, and particularly ICE Trust US, the first US firm to clear derivatives, as they expand existing electronic systems to clear OTC derivatives contracts between member firms.

Scrutiny of Operational Fundamentals Growing

April 14, 2010

The multiplicity of state and federal allegations filed against Morgan Keegan & Co. largely come down to simple risk and operational failures -- and underscore regulators’ growing scrutiny of these fundamentals.

Do Securities Firms Need a CGO?

April 7, 2010

The chief compliance officer is getting renewed emphasis in proposed financial regulatory reforms. But a chief governance officer may be what is really needed at securities firms.

The Yin and Yang of Financial Regulatory Reform

April 1, 2010

In Chinese philosophy, yin and yang are polar or seemingly contrary forces that are nevertheless interconnected and interdependent. The concept might well apply to the Senate’s Democratic and Republican wings, as they consider the financial regulatory reform package that emerged from the Senate Banking Committee March 22.

Questions of Independence for Proposed Risk Agency

March 24, 2010

Students of financial regulatory reform can be forgiven for not being totally up to speed on the bill cleared by the Senate Banking Committee March 22.

The Operational Challenges of 'Bespoke' Accounts

March 17, 2010

At the same time that investors in hedge funds are increasingly demanding managed accounts, these “bespoke accounts” also pose operational challenges – including additional overhead and systems requirements – for hedge fund managers.

To Attract Institutional Capital, Hedge Funds Need IT Edge

March 10, 2010

There's good news for hedge funds -- at least, for those able to meet the increasingly rigorous standards of institutional investors in critical areas such as risk management, transparency and operations.

Consumer Agency Wrangling Obscures Derivatives Reform

March 3, 2010

A consumer financial protection agency may be important. But protection from weapons that can produce mass financial destruction -- derivatives -- is more urgent.

Home State Moves to Regulate Hedge Funds

February 25, 2010

Connecticut is not waiting for Congress to come up with legislation requiring hedge funds to register with the Securities and Exchange Commission and open their books to inspection. The state that is the capital of the hedge fund industry wants to take fund regulation into its own hands.

Pre-Trade Compliance Technology is No Longer an Option

February 17, 2010

Since the financial crisis blew through the securities industry, the impact on IT systems has been dramatic. In one key area, pre-trade compliance technology, the crisis has spurred a transition from option to near-necessity.

Regulations Haven’t Caught Up with the Cloud

February 10, 2010

Regulatory and licensing issues are delaying adoption of cloud computing and online, on-demand computing, known as Software as a Service (SaaS), by securities firms. Nevertheless, as rules are worked out, these technologies should take hold over time.

Technology -- And Preventing Another Crisis

February 3, 2010

It’s widely recognized that politics – particularly as practiced by Congress --plays a central role in the outcome of financial regulatory reform. But in a January report from Boston-based research firm Aite Group titled “Smart Regulation,” author and senior Aite analyst Paul Zubulake goes a step further. Leaving politics aside, he writes, “The key component of all the discussion is how regulators can use technology to prevent another crisis.” …

Mind your E-Manners (sort of)

January 27, 2010

It’s not only the courts and the Securities and Exchange Commission that are looking over brokers’ shoulders when they communicate electronically. FINRA has now weighed in with guidance to member firms on how they use social networking sites – including Facebook, Twitter, LinkedIn and blogs – in communicating with the public.

He Said, She Said in Securitization Split

January 20, 2010

The Securities Industry and Financial Markets Association (SIFMA) is wasting no time getting back on its feet after a dust-up with the American Securitization Forum (ASF) that led to the termination of their eight-year-old affiliation earlier this month.

Finally, the Truth about Hedge Funds

January 13, 2010

Step aside, Securities and Exchange Commission. The Managed Funds Association – the main hedge fund trade association – is launching an ambitious data collection initiative aimed at finally getting its arms around the true size and nature of the industry.

Hedge Fund Transparency Won’t Extend to Media

December 23, 2009

For journalists covering the traditionally secretive hedge fund industry, opportunities to meet with leading hedge fund executives are few and far between. An exception: The Managed Fund Association’s annual networking conference, which features a large exhibit hall, first-rate speakers, and plenty of opportunities to talk with some of the industry’s best-known names. Until this year.

A Wall Street Christmas Poem (Lieberman edition)

December 17, 2009

As the gathering storm over financial regulatory reform approaches, this poem is dedicated to folks who fear Lieberman may provide a storm all his own.

Rolling Thunder

December 10, 2009

When industry lobbyists target a Congressional proposal for defeat, the roar can be deafening.

States Step in Where Feds Fear to Tread

December 4, 2009

In the $330 billion auction rate securities (ARS) scandal, when the market froze up after customers were told the risky securities were as safe as cash, state regulators took the initiative in winning money back for ordinary investors, and holding the wrongdoers accountable.