Compliancex

Report Sees Flaws in Workings of the Vatican Bank [TNYT] The Vatican is mostly compliant with international transparency and anti-money-laundering standards, but its bank still lags in monitoring suspicious activities or carrying out sufficient due diligence, according to a report issued Wednesday backed by the Council of Europe.

Detention for New Oriental [WSJ] The education of U.S. investors on the risks of overseas-listed Chinese stocks continues. Shares in New Oriental Education & Technology Group, one of China’s largest private education providers, plunged 57% in the last two days, wiping almost $2 billion off its market value. An investigation by the Securities and Exchange Commission, combined with allegations of fraud from short seller Muddy Waters

South Korea Widens Rate-Fixing Probe, Bank Shares Fall [TNYT] South Korea’s anti-trust agency, probing suspected collusion in setting three-month rates, has inspected offices of the local unit of Standard Chartered PLC and three local banks as part of the investigation, the four banks said on Thursday.

“Window-Smashing” UBS Investment Adviser May Be Responsible For 70 Incidences of Vandalism in SoCal [WallStreetJobReport] Michael Steven Poret, a broker at UBS Financial Services, was arrested in Encino last week. Police say that Poret vandalized numerous businesses along Ventura Boulevard and several private homes in Beverly Hills.

Central Bankers Eyeing Whether Libor Needs Scrapping [Reuters] Central bankers and regulators will hold talks in September on whether the troubled global Libor interest rate can be reformed or whether it is so damaged that the benchmark of borrowing costs should be scrapped.

High-Speed FX Trading Provokes Backlash From Banks [Reuters] Traders’ frustration at being outpaced by high-speed computer algorithms operating on foreign exchange dealing platforms is contributing to a fall in spot volumes on the market’s two biggest trading venues and prompting some to look elsewhere.

Libor Reported As Rigged In ’08 Proving 2012’s Revelation [Reuters] Barclays Plc’s admission that it rigged the London interbank offered rate shows regulators, central bankers and politicians weren’t paying attention when everyone from Citigroup Inc. to the Bank for International Settlements indicated that the measure was being manipulated.

Central Bankers Eyeing Whether Libor Needs Scrapping [Reuters] Central bankers and regulators will hold talks in September on whether the troubled global Libor interest rate can be reformed or whether it is so damaged that the benchmark of borrowing costs should be scrapped.

Geithner Says Firms’ Failures Prove Dodd-Frank Need [Bloomberg] U.S. Treasury Secretary Timothy F. Geithner said risk-management failures at firms including JPMorgan Chase & Co. (JPM) prove the importance of the Dodd-Frank financial rules overhaul. “We still have unfinished business,” Geithner said in remarks prepared for a meeting of the Financial Stability Oversight Council in Washington today.

Regulators Fine Altamonte Springs Investment Brokerage For ‘Willful’ Violations [OrlandoSentinal] An embattled investment brokerage in Altamonte Springs has been sanctioned by regulators for “willfully violating” certain federal securities laws, according to an industry agency’s ruling, though regulators have allowed it to continue operating as it contests other allegations of misconduct.