This story from Bloomberg just hit the wires this morning. Bank of America is shifting derivatives in its Merrill investment banking unit to its depository arm, which has access to the Fed discount window and is protected by the FDIC.
Stuart Washington March 7, 2011 INVESTORS should be banned from trading contracts for difference unless they prove they can handle the highly complex derivatives, the Financial Ombudsman Service has said. The call for a ban in the service's annual review goes beyond the independent complaints body's earlier written submission to the corporate regulator asking for comprehensive education to protect investors. ''In our experience, the only investors who trade in CFDs successfully are sophisticated traders who watch and manage their investments full-time,'' FOS said in its review. Advertisement: Story continues below The service raises the need for CFD traders to obtain a certificate from an accountant or financial planner to show they are competent to trade the complex derivatives. Its investments ombudsman, Alison Maynard, said in an interview: ''We think a certificate from
The incoming head of the newly created United Kingdom corporate regulator, Martin Wheatley, has warned our regulator that it may need new draconian powers to ban retail investors from using complex financial products.