Fed warns banks of tougher tests
The Federal Reserve has warned banks in the US that tests of their ability to survive a financial crisis will be made tougher – with new risk assessments and regular checks to ensure they fix any weaknesses identified in the process.
Fed governor Daniel Tarullo, who is head of regulatory matters at the central bank, said he expected more attention to be focused on macro elements of the so-called “stress tests”, such as exposures shared by multiple banks, and the risk they pose to the broader financial system. Tarullo said the standards for the biggest banks were the toughest, and it was not enough for them to meet the minimum capital planning standards.
Supreme Court backs phone privacy
US police must obtain a warrant to search a suspect’s smartphone after the Supreme Court ruled on Wednesday that constitutional privacy protections apply to the often extensive data people keep on the devices in their pockets.
Flaw in PayPal security system
Duo Security, a Michigan-based cyber security company, says its researchers have found a way to bypass PayPal’s so-called two-step authentication – where a code is sent to a user’s mobile phone to confirm they are logging in – on the PayPal app. PayPal has prided itself on its top-notch security but its parent company eBay suffered a cyber attack in May, when encrypted passwords to the e-commerce site were stolen.
Aereo loses copyright battle
The US supreme court ruled yesterday that technology start-up Aereo breached copyright law by allowing its customers to watch TV programmes over the internet while paying nothing to the main broadcasters.
Scarcity of female fund managers
Women such as Helena Morrissey and Katherine Garrett-Cox may have landed top jobs in the sector, but, overall, fund management continues to be very much a male-dominated career. Research from Bestinvest, the wealth manager, reveals that only seven per cent of investment funds are run by female managers.
The Daily Telegraph
Wonderbra owner sold for £320m
The owner of underwear brand Wonderbra has been sold for €400m (£320m) to US T-shirt company Hanes. DBApparel, which also owns lingerie brand Playtex and sportsbra brand Shock Absorber, has been under private equity group Sun European Partners' ownership since 2006.
Right to Buy ended in Scotland
The Scottish parliament overwhelmingly voted to abolish Scottish council tenants’ right to buy their home in the final death knell for one of the most popular policies of the Thatcher era. The body rejected by a margin of 103 votes to 12 a last-ditch effort by the Conservatives to save the policy.
THE WALL STREET JOURNAL
Portugal may issue dollar bonds
Portugal is mulling selling dollar-denominated bonds for the first time since 2010. “We are looking to do a dollar bond this year with the aim to diversify our investor base,” said João Moreira Rato, president of Portugal's debt agency.
Arabtec leads Dubai stocks rebound
Dubai's market rebounded yesterday, erasing almost all of the previous session's losses, on bargain buying and as investors picked up Arabtec stock after the company said it would remain a listed entity. The benchmark DFM index finished 6.1 per cent up at 4,253.04, after falling nearly seven per cent in the previous session.