SEC, Fed agree to share information

The SEC and the Federal Reserve Board of Governors signed an agreement today that will bolster the sharing of information.

The Securities and Exchange Commission and the Board of Governors of the Federal Reserve System signed a memorandum of understanding today that will bolster the sharing of information about investment and commercial banks.
Under the terms, the SEC will provide the Fed with information on the financial condition, liquidity and capital levels at investment banks.
Meanwhile, the Fed will give the SEC similar data for both banks and bank holding companies.
The regulators will meet at least quarterly to discuss potential regulatory changes based on the information.
The memo also states that the Fed and the SEC will work together to set rules on capital, liquidity and funding positions at investment banks or broker-dealers.
Regulations regarding broker-dealer exemptions from banking will be implemented by both agencies.
The agreement outlined policies on topics such as money laundering, clearance and settlements in banking and securities, as well as the regulation of transfer agents.
“It formalizes and strengthens the ongoing cooperation between our two agencies to enhance the stability of the financial system,” said Federal Reserve Board Chairman Ben S. Bernanke, according to a statement.
The SEC signed a similar agreement with the Commodity Futures Trading Commission of Washington, and an agreement with the Department of Labor is anticipated later this summer.