DBS Bank as first mover?

[Secretariat]

http://www.businessinsider.com/singapore-bank-to-uncle-sam-stick-it-where-the-sun-dont-shine-2012-10

...... foreign banks have been in turmoil over the last two years as a result of all this legislation. Nobody wants to crawl in bed with the US government, and some banks have taken action by shuttering US citizens’ accounts. Americans are even being dumped from foreign corporate boards.

Yet just yesterday, DBS Bank in Singapore stood up to the US government, indicating that they would not be registering with US authorities for at least .... one Dodd Frank provision pertaining to swaps. Nordea Bank in Sweden made a similar statement.

[Secretariat]

The act of DBS Bank, if adopted by other major non-US banks throughout, may mean something big, or may mean nothing to the markets.

I let the traders of this forum to share their insights.

[radha08]

In LAY-mans terms.....singapore....BOLEH....

[richwang]

There are 16 Titles in Dodd-Frank Act:

Title I: Financial Stability
Title II: Orderly Liquidation Authority
Title III: Transfer of Powers to the Comptroller of the Currency, the Corporation, and the Board of Governors
Title IV: Regulation of Advisors to Hedge Funds and Others
Title V: Insurance
Title VI: Improvements to Regulation of Bank and Savings Association Holding Companies and Depository Institutions
Title VII: Wall Street Transparency and Accountability Act
Title VIII: Payment, Clearing and Settlement Supervision
Title IX: Investor Protections and Improvements to the Regulation of Securities
Title X: Bureau of Consumer Financial Protection
Title XI: Federal Reserve System Provisions
Title XII: Improving Access to Mainstream Financial Institutions
Title XIII: Pay It Back Act
Title XIV: Mortgage Reform and Anti-Predatory Lending Act
Title XV: Miscellaneous Provisions
Title XVI: Section 1256 Contracts

Still learning ....
Thanks,
Richard

[leesg123]

too cheem for me :banghead:

[buttercarp]

too cheem for me :banghead:

In summary it is an act which :

promote the financial stability of the United States by improving accountability and transparency in the financial system,

to end "too big to fail",

to protect the American taxpayer by ending bailouts,

to protect consumers from abusive financial services practices,

and for other purposes.

http://en.wikipedia.org/wiki/Dodd%E2%80%93Frank_Wall_Street_Reform_and_Consumer_Protection_Act

[richwang]

http://www.sec.gov/about/offices/owb/dodd-frank-sec-922.pdf


Whistleblowers receive 10% - 30% of the cash collected due to the information provided by whistleblowers.

Thanks,
Richard

[Secretariat]

The legislation is complex with multiple titles, implementation of these lagi complex.

But this is property forum, so there was no intention to cover these here, nor am I qualified to.

Basically, since the subprime crisis, the United States and the European Union in particularly have came up with various legislations to exert much greater supervisions in their banking system. UK as well, curbing the bonus being paid to London traders etc. No more secret bank accounts in Switzerland etc.

Quietly (this means not reported in mainstream media), the affected banking people have been comtemplating of ways to operate away from these legislations, legally. Fairly normal behavior, it happened all the times, before subprime, and also in future.

Singapore and HongKong have been positioning themselves to capture a slice of these new business. For us, just look at the extend of expansion in MBFC.

Maybe another report of the same news, can illustrate better.

http://online.wsj.com/article/SB10001424052970203400604578072221988442386.html

Another thing is, it is a general acknowledgement that US and Singapore work closely, especially the role Sinagpore, GIC played in several bailouts during the subprime crisis.

That DBS Bank came out first to indicate non registration for its swaps, there can be a significant there. It is improbable that this was done without MAS consultation. Read in between the lines if you want, but what is the intention of MAS as far as US dollar goes.

(Maybe Laguna can add his insights here?)

Anyone remember the flurry of visits taken place recently? LHL to Malaysia, Australia, Australia PM to Indonesia. China etc. What is the hidden agenda?

[richwang]

SGD is bench marked with a basket of currencies.
In that basket, USD will become less and less important,
Asian currencies will become more and more important.

So I don't see any immediate impact to the market.
If you are talking about trend, here we go:

http://www.singstat.gov.sg/stats/themes/economy/natac.html

Stock of Foreign Direct Investment in Singapore:

US increased from 31,356M to 65,432M from Year 2000 to 2010
(almost doubled)

But at the same time,
China increase from 890M to 11,515M
(12 times!)


Thanks,
Richard

[Secretariat]

SGD is bench marked with a basket of currencies.
In that basket, USD will become less and less important,
Asian currencies will become more and more important.

So I don't see any immediate impact to the market.
If you are talking about trend, here we go:

http://www.singstat.gov.sg/stats/themes/economy/natac.html

Stock of Foreign Direct Investment in Singapore:

US increased from 31,356M to 65,432M from Year 2000 to 2010
(almost doubled)

But at the same time,
China increase from 890M to 11,515M
(12 times!)


Thanks,
Richard

You know the basket of currencies and the bands?

[richwang]

If I know the details of the basket and band, I will be in jail.
It is a confidential.

http://www.mas.gov.sg/Monetary-Policy-and-Economics/The-Singapore-Economy/~/media/MAS/Monetary%20Policy%20and%20Economics/The%20Singapore%20Economy/RED/Recent_Economic_Developments_Sep.ashx

But it is trade weighted, so the Chinese Yuan weighting relative to USD is increasing.
Many banks have their in-house model to make very good guess.

http://bluephoenixfinancial.com/investment-management/blog/4853-barclays-mas-sgd-neer-stance-favorable-for-front-end

Thanks,
Richard

[Secretariat]

If I know the details of the basket and band, I will be in jail.
It is a confidential.

http://www.mas.gov.sg/Monetary-Policy-and-Economics/The-Singapore-Economy/~/media/MAS/Monetary%20Policy%20and%20Economics/The%20Singapore%20Economy/RED/Recent_Economic_Developments_Sep.ashx

But it is trade weighted, so the Chinese Yuan weighting relative to USD is increasing.
Many banks have their in-house model to make very good guess.

http://bluephoenixfinancial.com/investment-management/blog/4853-barclays-mas-sgd-neer-stance-favorable-for-front-end

Thanks,
Richard

Yes, Richard.