(Reuters) - Commodity Futures Trading Commission chief Gary Gensler has convinced regulators to insert new language into the Volcker rule restricting foreign banks from evading the rule, Bloomberg reported on Friday. The new language, which clarifies the Volcker rule's definition of trading solely outside the United States, ensures that banking giants such as Deutsche Bank AG and Barclays Plc are not an exception to the regulation's ban on proprietary trading, according to the report, which cited sources briefed on the change. Gensler and the CFTC were not immediately available to comment to Reuters. The CFTC was earlier sued by three Wall Street trade groups to fight the tough overseas trading guidelines and accused it of making changes to the guidelines without seeking public input.
The U.S. Attorney's Office in Manhattan is looking into why JPMorgan Chase & Co did not file a suspicious activity report about Bernard Madoff before he was arrested for running a multibillion-dollar Ponzi scheme, the Wall Street Journal reported on Friday, citing people close to the probe. The bank is negotiating a settlement with U.S. Attorney Preet Bharara's office over the matter that will likely include a fine and a deferred prosecution agreement, the Journal reported. JPMorgan had raised concerns with UK regulators about Madoff more than a month before his arrest in December 2008, the Journal reported.
The Federal Reserve will start reducing its massive bond-buying program no later than March, according to a Reuters poll on Friday, with a handful of Wall Street firms expecting the U.S. central bank taking action as early as December following a second straight month of robust jobs gains. The poll canvassing 18 of the 21 primary dealers - those banks who are permitted to deal securities directly with the Fed - found that eight of them expect the first so-called tapering of bond purchases to begin in March. Friday's poll results, which followed a stronger-than-expected reading of the U.S. job market in November, with the unemployment rate falling to a five-year low, slightly moved forward the anticipated time frame for the first tapering by the Fed. In the November poll, two of the 16 dealers surveyed did not see the wind down beginning until April 2014.