Federal Reserve Board ("FRB") Governor Jerome H. Powell discussed financial stability reforms and cautioned against supervisory interventions that "lean against" the credit cycle. The Governor delivered his remarks at the Stern School of Business of New York University. According to Mr. Powell, the agenda for financial stability reform that relates to global systemically important banks ("G-SIBs"), financial market infrastructure and money markets is well developed. With regard to G-SIBs, Mr. Powell discussed higher capital requirements, liquidity regulation and stress testing, and noted that

The SEC charged the brokerage firm VCAP Securities ("VCAP") and its CEO with defrauding and deceiving other market participants while conducting auctions to liquidate collateralized debt obligations ("CDOs"). An SEC investigation found that VCAP and its CEO improperly arranged for a third-party broker-dealer to bid secretly at these same auctions on behalf of their affiliated investment adviser, which VCAP did in order to acquire certain bonds to benefit the funds that it managed and served as a liquidation agent. According to the SEC, VCAP had access to all of the confidential bidding

MFA President and CEO Richard H. Baker issued a statement applauding the European Commission's proposal for a Capital Markets Union. The proposal is intended to minimize impediments to cross-border investments in the European Union, develop a more diversified financial system by complementing bank financing and provide greater investment incentives in the region. See: MFA Statement; Proposal for Capital Markets Union.

The MSRB announced that Robert Fippinger has been named Chief Legal Officer. Mr. Fippinger will oversee all legal and external affairs. Se e: Press Release.

The U.S. Attorney's Office for the Southern District of New York announced charges against a former investment management firm employee (the "employee") for obstruction of justice and perjury relating to an investigation by the SEC into potential violations of the federal securities laws. According to the U.S. Attorney's office, when a representative of the SEC called the firm in an attempt to speak with the firm's President, the employee, on three occasions, answered the phone and pretended to be either the investment firm President or another employee. See: Press Release; SEC Litigation