Posts Tagged ‘financial regulation’
About time. The Securities and Exchange Commission (SEC) voted today in a 4 to 1 decision in favor of lifting the advertising ban for hedge funds. A move that was required by the JOBS Act passed last year. The bill was “designed” to decrease funding hurdles for small businesses in the wake of a growing use of crowd-funding. Hedge funds are restricted to investors that have a net worth of at least 1 million (excluding primary residence) or annual salary of 200,000 in previous two years–about 7.8% of Americans.
Have fun all you hedge funds out there, we expect to see some funny Superbowl commercials….
Thanks to Huffington Post for the article: Hedge Fund Ad Ban Lifted
Profits are good, but how you get there in the financial world is often the focus for regulators. Five former traders at the world’s largest financial institutions confirmed that traders are front-running client orders and rigging WM/Reuters rates by pushing through trades before and during the 60-second windows when the benchmarks are set.
Traders are “banging the close” by pushing rates higher or lower and profiting from the difference between the reference rate and the price of the their own products. Even so, experts say that because of the size of the foreign exchange market (4.7 trillion daily), traders would have a hard time manipulating currency rates. And some fund managers prefer the WM/Reuters rates even if it is rigged because it’s more convenient and cheaper than quotes from individual banks.
Don’t jump the gun, this doesn’t scream “more regulation,” but merely an opportunity for increased awareness and compliance. This news comes after after three lenders were fined about $2.5 billion for rigging the London interbank offered rate, or Libor, last year.
Big Banks? Yeah right. Take a look at crowdfunding for your next business idea lawyers. 2.1 billion raised in 2012 alone, 1.6 billion coming from within the U.S., representing an 81% increase from the previous year. In a world where 4 large banks control over half the our money in the U.S., it’s time to move Congress and regulators aside and let crowdfunding compete with “too big to fail” financial institutions (that means you, “JOBS” Act).
Thanks to Kylie MacLellan from Reuters for the article : Global crowdfunding volumes rise 81 percent in 2012 | Reuters.