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The article discusses findings from the financial stability trends report of the Office of Financial Research which shows the serious implications of the Brexit referendum on global financial stability. It notes that Great Britain's exit from the European Union (EU) has already harmed investor confidence and created uncertainty on British regulations to address investment and trade relations in the EU, U.S., and other countries.

Opinion. Discusses specific points that banks should address in the investment-product program statements required by the Comptroller's office. Avoiding conflicts; Common practice in the mutual fund industry; Spelling out the risks; Acknowledging receipt; Incorporation of National Association of Securities Dealers (NASD) rules; Suitability inquiries; Standards for salespeople.

The article reports that the federal banking regulators in the U.S. explore on whether to exempt trust-preferred securities-supported collateralized debt obligations (CDOs) from Volcker Rule. Topics discussed include a lawsuit filed by the American Bankers Association (ABA) against the regulators, available-to-maturity securities, and investment registration which might be limited.

The article reports on U.S. Securities and Exchange Commission (SEC) member Daniel Gallagher's views on money market mutual funds, noting he said he might support an option that requires money funds to have a floating share price and also noting his opposition to SEC Chairman Mary Schapiro's plan to make money funds a safer investment which is discussed.

The article reports on the U.S. Federal Housing Finance Board's approval of an investment rule for public interest directors. The rule calls for allowing public interest directors to invest in mutual funds which invest in Home Loan bank members. The Finance Institutions Reform, Recovery and Enforcement Act of 1989 is not affected.

The article reports that the United States Office of Federal Housing Enterprise Oversight Director James Lockhart has taken a softer stance on restricting mortgage portfolios at government-supported enterprises (GSE). Lockhart has frequently argued that the portfolios should be downsized to prevent systemic risk. Comments made by Lockhart regarding portfolios and the mortgage market are presented.

Highlights the speech of Matthew Fink, president of the Investment Co. Institute, during the group's annual meeting, in which he called for the regulation of alternative investments. Citation of risks created by certain alternative investment products; Call made by the institute to the Securities and Exchange Commission for a review of these portfolio investment programs.

Focuses on the positive response of bankers in the United States to the merchant banking rule released by federal regulators that removes a $6 billion cap on investments. Criticism on the restrictions imposed by the cap; Cap's contradiction of the Gramm-Leach-Bliley Act of 1999's intent to promote investment banking by financial holding companies.

Reports on the rule released by United States Federal Deposit Insurance Corp. regulators governing the activities and investments allowed by state banks and their affiliates. Allowing of its regulated institutions to do any activity through a financial subsidiary that is allowed for a national bank.

Reports on a move by 10 United States consumer advocacy groups to urge the Securities and Exchange Commission to require mutual funds to improve disclosure of their portfolios' holdings to shareholders. Some of the groups that have signed a petition on the matter; Rules that are in effect as of August 2000; Why the groups are arguing for more frequent disclosure of holdings.

Reports on community banks' opposition against efforts to reform Federal Home Loan Bank investment policies in the United States. Federal Housing Finance Board's plan to limit the amount of capital that commercial banks and thrifts may keep in the system; Reasons why community banks oppose the reform efforts.

Reports on the United States Department of Housing and Urban Development's (HUD) plan to impose a rule to limit Federal National Mortgage Association and Federal Home Loan Mortgage Corp.'s nonmortgage investments. Competitive Consumer Lending Coalition's support to HUD's plan; Enterprises' exemption from state or local taxes.

Reports on the interagency statement released by the Federal Reserve Board, Federal Insurance Corp. and the Comptroller's Office on retail sales of nondeposit investment products. Failure to comply to be treated as an unsafe and unsound banking practice; Mandatory disclosure on the nature of investment products offered; Call for public information campaigns.

Reports on the recommendations of Iowa Congressman Jim Leach on derivatives issues. Threat of legislation; Study on risks; Formation of interagency task force; Need for formalized effort; Guidelines from Office of the Comptroller of the Currency.

Reports on speculation that regulators will be unable to fulfill President Bill Clinton's request that the Community Reinvestment Act be revamped by the end of 1993. Prime movers of the reform; October target for proposal for public comment; `Strategic plan' approach.

Reports that the Office of Thrift Supervision has simplified a rule governing subsidiary investments. Clarification of activities that can be conducted through operating subsidiaries and service corporations; Publication of the rule in the Federal Register.

Comments on the FAS 115 accounting regulations covering investments in the United States. Effects of holding securities to maturity on banks' opportunity to gain profit; Regulations' flaws.

Reports on the statement by the head of the General Accounting Office that Congress might pass new laws to rein in derivatives in spring 1995.

Comments on the three separate investment categories created by the Securities and Exchange Commission. `Held to maturity'; `Held for sale'; `Trading account'; Impact of these categories on the current investment policies.

Reports on the guidelines issued by the Office of Thrift Supervision (OTS) on investing in structured notes. Issuance of a warning; Majority of structured notes issued by the Federal National Mortgage Association (Fannie Mae); Features of the structured notes.

Reports on the delay in the release of new reporting requirements for derivatives contracts. Regulators' proposal of additional disclosures regarding banks' off-balance-sheet derivatives; Disclosures to require banks to break down national contract amounts by instrument type.