WASHINGTON (Source: By Ronald D. Orol, MarketWatch) — Securities regulators on Wednesday acted to issue new rules on how major financial institutions run their derivatives businesses, responding to concerns that some banks sold investors securities that were fraught with conflicts of interest.All five commissioners at the Securities and Exchange Commission voted to move forward with the latest set of regulations to mandated by the Dodd-Frank Act, the landmark financial overhaul written in the wake of the financial crisis of 2008.
Under the proposed rules, so called “security-based swap dealers” such as Goldman Sachs Group Inc. GS -0.02% , J.P. Morgan Chase & Co. JPM +0.57% and Morgan Stanley MS -1.16% would be required to disclose to counter-parties material information about their derivatives deals, including material risks, characteristics, incentives and potential conflicts of interest.
Source: By Ronald D. Orol, MarketWatch
June 29, 2011, 1:26 p.m. EDT
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