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Britain’s FSA (Their SEC Analog) Shuttered, Functions Moved To UK Central Bank

June 20, 2010 (By Bud Burrell)

– From Front and Center, by Bud Burrell –

In a stunning move last week, the United Kingdom liquidated its Financial Services Authority (its analog to the US’ Securities and Exchange Commission) with little notice, and in the move, shifted all of their regulatory functions and authority to the UK Central Bank. The stated reasons for this move were several. First, the Government cited numerous regulatory oversight failures, not the least being their failure to pick up on the monstrous frauds in sub-prime mortgages and CDO’s. Other breaches of their fiduciary duties included failures to properly regulate UK hedge funds, along with the absence of proper oversight of off shore entities involved in manipulation while under Commonwealth legal authority. [entire post]

Tags: 1.5 Trillion gdp, 3rd largest employer in world, 400% debt to gdp, bank of england, different legal systems, fsa divergences with us sec, fsa shuttered, national health employs 1.4 million, sec functions to federal reserve, stutz bearcat short squeeze, uk central bank, uk unemployment 25%
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Forex: Dollar Finishes Higher Versus European Currencies

August 24, 2009 (By Brewer Investment Group)

– From “The Brewer Blog”, by Brewer Investment Group –

The lack of fresh economic news kept the Forex markets in check most of the day but the U.S. Dollar did post a gain against most majors. The gains and losses were split between relatively lower yielding European currencies and the higher yielding Pacific Rim currencies.

The EUR USD started the day slightly better led by the performance in European equity markets but turned negative throughout the U.S. session. Fed Chairman Bernanke’s upbeat comments on Friday seemed to have worn off with traders instead choosing to focus on the more subdued comments by European Central Bank President Trichet. Thoughts that the U.S. economy was recovering faster than the Euro Zone may have also weighed on the Euro.

Traders continued to press the GBP USD lower in a move that began August 6th when the Bank of England announced an increase in the funding for its asset-buyback program. This announcement is being perceived as bearish because it is basically a license to print money. Furthermore, the prospect of a huge budget deficit is also being seen as a major negative.

The Dollar gained back some ground versus the Swiss Franc. Last week the USD CHF was under pressure after the Swiss National Bank decided to sell its interest in UBS after the banking giant reached an agreement with the U.S. Internal Revenue Service. This news sent a signal that the Swiss banking system had stabilized. [entire post]

Tags: australia, bank of england, bernanke, canadian dollar, eropean currencies, euro, euro zone, european central bank, forex, internal revenue service, japanese yen, new zealand, pacific rim currencies, swiss franc, swiss national bank, u.s. dollar, u.s. economy, ubs
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Forex: Euro Holds Gains Despite Bernanke’s Bullish Comments

August 21, 2009 (By Brewer Investment Group)

– From “The Brewer Blog”, by Brewer Investment Group –

The EUR USD managed to hold on to its overnight gains despite bullish comments from Fed Chairman Bernanke that boosted the U.S. Dollar. Early in today’s trading session the Euro rallied sharply higher following the release of better than expected economic reports from France and Germany. The reports unexpectedly showed improvements in French manufacturing and German services. The Euro was trading firm at the New York opening but positive comments from Bernanke regarding the recovery in the global economic community helped the U.S. Dollar improve, thereby limiting gains in the Euro.

Bernanke’s comments also helped pressure the GBP USD. The British Pound opened the New York session a little better on the bullish news out of Europe, but gains were erased after Bernanke’s comments. Fundamentally this currency pair remains weak because of the growing U.K. deficit and expansion of the Bank of England’s quantitative easing program. Traders want to see an improvement in the U.K. economy before committing to the long side.

The USD JPY reversed early morning losses to post a gain at the close of the session. Overnight the Japanese Yen was trading higher because of the reversal of the carry trade following weakness in Asian stock markets. The surge in U.S. equity markets and the thought of an economic recovery in the U.S. encouraged traders to buy the Dollar and sell the Yen throughout today’s session. Technically this currency pair formed a closing price reversal bottom which could lead to a follow-through rally next week. [entire post]

Tags: australia, bank of england, bernanke, british pound, canada, canadian dollar, economiuc, forex, france, germany, new zealand, recovery, u.k., u.s. dollar
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