Published — July 27, 2011 Updated — May 19, 2014 at 12:19 pm ET

Financial stability council warns Congress U.S. markets still fragile

Financial Stability Oversight Council meeting on Nov. 23, 2010 Susan Walsh/The Associated Press

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The Financial Stability Oversight Council (FSOC), comprised of U.S. regulators of financial services, warned Congress of the continued fragility of the U.S. financial system and called for increased protection in several key areas.

Those areas included the $2.7 trillion short-term funding market known as the “triparty repo” market, as well as money-market mutual funds, the council said in its first annual report. The repo market temporarily froze during the 2008 financial crisis and drained a key source of funding for investment companies and banks, the Wall Street Journal reports. FSOC recommended that the Securities and Exchange Commission increase stability in money-market funds by changing from a fixed to floating share price, and imposing capital standards to absorb losses.

FSOC also warned that the United States faces potential losses connected with the European debt crisis. Any assumptions of market stability, the report said, should be met with “a heavy dose of skepticism.”

Stressed hedge fund managers – Billionaire investor George Soro is returning $1 billion to outside investors so that he can avoid registering his giant investment fund with the Securities and Exchange Commission. Instead, he will now manage the fund – worth $25 billion – as a family business.

The move is “an unfortunate consequence” of the Dodd-Frank financial regulations, Soros wrote in an investor letter. Under rules adopted since the Dodd-Frank reform law, a fund must register with the SEC unless it manages investments for a single family.

Marketwatch reports that Soros is the latest investor to return outside investor funds, but the first to connect the decision with SEC registration requirements. Previously, activist investor Carl Icahn explained his decision by saying he didn’t wish “to be responsible to limited partners through another possible market crisis,” while investor Stanley Druckenmiller said he was “dissatisfied” with his performance at Duquesne Capital Management.

The move by Soros seems to be “not simply about the registration, but the greater uncertainty as to who will come under scrutiny and exactly how the rules apply,” said Anthony Michael Sabino, a professor at St. John’s University’s Peter J. Tobin College of Business. “We still have a long way to go before we can fully understand all the ramifications of Dodd-Frank.”

Debt debate inspires rap video – With less than a week for Congress and the White House to prevent the United States from defaulting on its debt, comedian Remy Munasifi is circulating a music video urging action. “Raise the debt ceiling, raise the debt ceiling,” he raps in a music video called – what else — “Raise the Debt Ceiling.”

Munasifi, wearing a track suit, black cap, and dollar-sign bling, throws U.S. currency around as he explains, “$14 trillion in debt, but yo we ain’t go no qualms. Dropping $100 bills and million-dollar bombs. Social Security surplus? Oh guess what? It’s gone.”

The video was posted by Reason.TV, a website affiliated with the libertarian magazine Reason. It is the third in a series of collaborations between Munasifi and Reason TV. Munasifi concludes by urging quick government action: “Our debt is more unsustainable than my rap career.”

Consumer complaints – The most frequent consumer complaint in 2010 was for misleading information in selling new or used cars, faulty repairs, and towing disputes, according to an annual survey of state, county and city agencies from 18 U.S. states. The No. 2 complaint was for credit- and debt-related problems such as debt relief services, credit repair, abusive debt collection tactics, mortgage-related fraud, and billing disputes.

The survey by the Consumer Federation of America, National Association of Consumer Agency Administrations, and the North American Consumer Protection Investigators added a new category to the top 10 complaints: fraud. This group of complaints was for bogus sweepstakes and lotteries, work-at-home schemes and other scams.

The survey also collected suggestions to protect consumers. These ranged from tougher laws to curtail abusive debt collection practices to imposing stiff monetary penalties if landlords knowingly rent property that is or is about to be in foreclosure.

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linksys ac1750 reviewinstall itunes on windows 7Bob FrankstonLinda GordonET69 Recent comment authors
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sam fetters
sam fetters

What do AT&T, Verizon and Crown Castle International Corp have in common? The largest institutional shareholders of each includes firms like: Vanguard, BlackRock, State Street (the “Big Three”), Invesco, Fidelity (FMR), JP Morgan, Wellington Management, Geode, T Rowe Price, Bank of America, and other of the largest money-management and investment firms, whom operate collaboratively (even comprising the largest shareholders of each other), forming virtual monopolies amongst the largest “competing” corporations, in most every single industry, via large share holdings. (source = These are the same firms whom also largely own the third largest telecom, T-Mobile. The own the largest… Read more »

Jello Beyonce
Jello Beyonce

I’ve a theory that the supposed “Trade Wars” and “sanctions” and political/military strife going on between the U.S., China, Russia, etc. are merely distractions, serving to divert attention away from the growing authoritarianism and Oligarchic control spreading across the globe. “Nationalism” is being used as a propagandist covert means of continued increasing Globalism. As this article states: “A Russian woman stood up to speak at one of these public meetings, and she said that when she lived in Russia, the government slam dunked her and she had no say,” King said. “Now she lives in the United States of America,… Read more »


Marx was right about capitalism . Capital gets more and more concentrated in fewer and fewer hands. There is no way out of this greed. We need socialism!

Linda Gordon
Linda Gordon

5g is a kill grid. The depployment of this weapon is an act of terroism genocide and ecocide. The marketers need to be jailed as terrorists.

Bob Frankston

The real issue with 5G is that it’s an attempt to roll back the Internet and return to the telecom of the 1970s when the phone company controlled all.

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I have read the post and it is really helpful as I have got to know about the 5G wireless cities which are accepting the technology and other cities which are rejecting it.

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Controvery is the name of the game.