FASB, IASB Work on Entity Draft
The Financial Accounting Standards Board and the International Accounting Standards Board published an exposure draft on the Conceptual Framework for Financial Reporting: The Reporting Entity. The draft is a joint FASB, IASB project to develop a common and improved conceptual framework to provide a sound foundation for developing future accounting standards. It discusses what constitutes a reporting entity, which in different situations could be a group of entities, a single entity, or only a portion of an entity. The deadline for comments is July 16. Read more 

FFIEC Answers SAFE Questions
The Federal Financial Institutions Examination Council published a question and answer document on the Secure and Fair Enforcement for Mortgage Licensing Act. The law requires individual mortgage loan originators to register with the Nationwide Mortgage Licensing System and Registry, a database established by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators to support the licensing of mortgage loan originators by the states. FDIC recently approved a draft final rule to put the federal registration requirement into effect, which will require registration by individual residential mortgage loan originators employed by agency-related institutions. These originators will obtain a unique identifier that will stay with them regardless of employment. FFIEC explained that the Office and Management and Budget is reviewing the draft rule. The draft rule would provide financial institutions with 180 days to complete initial registrations once the system is operational. Read more 

Blumenthal Sues Moody, S&P
Connecticut Attorney General Richard Blumenthal sued Moody and Standard & Poor for knowingly assigning tainted credit ratings to risky investments backed by subprime loans. Blumenthal said Moody’s and S&P’s alleged misconduct helped create the economic crisis. The lawsuit alleged that Moody and S&P knowingly catered to the demands of investment banks and other large issuers of structured finance securities to increase their own revenues. “These credit rating agencies gave the best ratings money could buy -- catering to their powerful investment bank clients, rather than objectively rating risky bonds,” Blumenthal said. He claimed the companies’ lack of independence and objectivity violated the Connecticut Unfair Trade Practices Act. Read more 

Senate Approves Treasury Nominees
The Senate confirmed three nominees for key Treasury position for international finance. Ian H. Solomon will be the executive director for the International Bank for Reconstruction and Development, Walter C. Jones will serve as the executive director of the African Development Bank and Douglas A. Rediker will be the U.S. alternate executive director to the International Monetary Fund Board. Previously, Solomon was senior advisor to the Treasury Secretary on international and domestic issues, including the Administration's global food security initiative. Jones has worked in the areas of international development, business, law and finance for more than 20 years and previously served as a senior investment officer at the Overseas Private Investment Corporation. Rediker was previously the director of the Global Strategic Finance Initiative at the New America Foundation, which focuses on the relationship between global finance, capital flows and foreign policy. Read more