Derivatives clearinghouses owned by CME Group Inc. (CME) (CME) and Intercontinental Exchange Inc. have been designated systemically important by U.S. regulators, a step that moves them closer to heightened supervision. ICE Clear Credit, the world’s largest credit-default swap clearinghouse, and CME Inc., the clearinghouse owned by the world’s largest futures exchange, received the designation from the Financial Stability Oversight Council. The moves were confirmed by Kelly Loeffler, a spokeswoman for Atlanta-based Intercontinental Exchange, and Michael Shore, a spokesman for Chicago-based CME Group. The designations were approved this week by FSOC as part of an initial set of so-called financial market utilities that require increased oversight by regulators including the Federal Reserve. The designations, which are subject to appeal, may be completed “as early as this ...
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The three directors who oversee risk at JPMorgan Chase & Co. (JPM) include a museum head who sat on American International Group Inc.’s governance committee in 2008, the grandson of a billionaire and the chief executive officer of a company that makes flight controls and work boots. What the risk committee of the biggest U.S. lender lacks, and what the five next largest competitors have, are directors who worked at a bank or as financial risk managers. The only member with any Wall Street experience, James Crown, hasn’t been employed in the industry for more than 25 years. “It seems hard to believe that this is good enough,” said Anat Admati, a professor of finance at Stanford University who studies corporate governance. “It’s a massive ... Continue reading →
