About: Net capital rule

Facets (new session)
Description
Metadata
Settings
- Rule:
- Inverse Functional Properties:
- "Same As":

About: Net capital rule Goto Sponge NotDistinct Permalink

An Entity of Type : dbo:Country, within Data Space : dbpedia.demo.openlinksw.com associated with source document(s)
QRcode icon

http://dbpedia.demo.openlinksw.com/describe/?url=http%3A%2F%2Fdbpedia.org%2Fresource%2FNet_capital_rule

The uniform net capital rule is a rule created by the U.S. Securities and Exchange Commission ("SEC") in 1975 to regulate directly the ability of broker-dealers to meet their financial obligations to customers and other creditors. Broker-dealers are companies that trade securities for customers (i.e., brokers) and for their own accounts (i.e., dealers). The 2004 rule change remains in effect. The companies that received SEC approval to use its haircut computation method continue to use that method, subject to modifications that became effective January 1, 2010.

Attributes	Values
rdf:type	yago:WikicatUnitedStatesHousingBubble yago:AdministrativeDistrict108491826 yago:District108552138 yago:Location100027167 yago:Object100002684 yago:PhysicalEntity100001930 yago:Region108630985 yago:YagoGeoEntity yago:YagoLegalActorGeo yago:YagoPermanentlyLocatedEntity country
rdfs:label	Net capital rule (en)
rdfs:comment	The uniform net capital rule is a rule created by the U.S. Securities and Exchange Commission ("SEC") in 1975 to regulate directly the ability of broker-dealers to meet their financial obligations to customers and other creditors. Broker-dealers are companies that trade securities for customers (i.e., brokers) and for their own accounts (i.e., dealers). The 2004 rule change remains in effect. The companies that received SEC approval to use its haircut computation method continue to use that method, subject to modifications that became effective January 1, 2010. (en)
dcterms:subject	United States housing bubble United States securities law
Wikipage page ID	19609792 (xsd:integer)
Wikipage revision ID	1090456502 (xsd:integer)
Link from a Wikipage to another Wikipage	Bear Stearns Dean Witter Reynolds Joseph Stiglitz Paul S. Atkins Robert Hall (economist) Leverage (finance) Prepared testimony Christopher Cox Frank Partnoy GAO Goldman Sachs Gramm-Leach-Bliley Act Morgan Stanley Andrew Lo Lehman Brothers Slate (magazine) Haircut (finance) U.S. Securities and Exchange Commission William H. Donaldson John Coffee Long-Term Capital Management Alan Blinder Daniel Gross Barry Ritholtz Basel Committee on Banking Supervision Broker-dealer Form 10-K Form 10-Q United States housing bubble Harvey Goldschmid Henry Paulson United States securities law Financial regulation Merrill Edge New York Stock Exchange New York Times Niall Ferguson Securities Investor Protection Corporation Securities regulation in the United States Generally Accepted Accounting Principles Mark-to-market accounting Special purpose entity Financial crisis of 2007-2009 Glass–Steagall Act Rating agencies New York Sun dbr:Consolidated_Supervised_Entity
Link from a Wikipage to an external page	http://www.newyorkfed.org/research/quarterly_review/1987v12/v12n3article1.pdf https://www.sec.gov/about/offices/oia/oia_market/key_rules.pdf https://www.sec.gov/divisions/marketreg/bdaltnetcap.htm https://www.sec.gov/divisions/marketreg/bdnetcapital.htm
sameAs	Net capital rule Net capital rule Net capital rule Net capital rule
dbp:wikiPageUsesTemplate	dbt:Citation_style dbt:Multiple_issues dbt:Original_research dbt:Reflist
has abstract	The uniform net capital rule is a rule created by the U.S. Securities and Exchange Commission ("SEC") in 1975 to regulate directly the ability of broker-dealers to meet their financial obligations to customers and other creditors. Broker-dealers are companies that trade securities for customers (i.e., brokers) and for their own accounts (i.e., dealers). The rule requires those firms to value their securities at market prices and to apply to those values a haircut (i.e., a discount) based on each security's risk characteristics. The haircut values of securities are used to compute the liquidation value of a broker-dealer's assets to determine whether the broker-dealer holds enough liquid assets to pay all its non-subordinated liabilities and to still retain a "cushion" of required liquid assets (i.e., the "net capital" requirement) to ensure payment of all obligations owed to customers if there is a delay in liquidating the assets. On April 28, 2004, the SEC voted unanimously to permit the largest broker-dealers (i.e., those with "tentative net capital" of more than $5 billion) to apply for exemptions from this established "haircut" method. Upon receiving SEC approval, those firms were permitted to use mathematical models to compute the haircuts on their securities based on international standards used by commercial banks. Since 2008, many commentators on the financial crisis of 2007-2009 have identified the 2004 rule change as an important cause of the crisis on the basis it permitted certain large investment banks (i.e., Bear Stearns, Goldman Sachs, Lehman Brothers, Merrill Lynch, and Morgan Stanley) to increase dramatically their leverage (i.e., the ratio of their debt or assets to their equity). Financial reports filed by those companies show an increase in their leverage ratios from 2004 through 2007 (and into 2008), but financial reports filed by the same companies before 2004 show higher reported leverage ratios for four of the five firms in years before 2004. The 2004 rule change remains in effect. The companies that received SEC approval to use its haircut computation method continue to use that method, subject to modifications that became effective January 1, 2010. (en)
gold:hypernym	Rule
prov:wasDerivedFrom	wikipedia-en:Net_capital_rule?oldid=1090456502&ns=0
page length (characters) of wiki page	151701 (xsd:nonNegativeInteger)
foaf:isPrimaryTopicOf	wikipedia-en:Net_capital_rule
is Link from a Wikipage to another Wikipage of	David Blech Timeline of the 2000s United States housing bubble Haircut (finance) Tower Research Financial crisis of 2007–2008 Bank regulation in the United States Broker-dealer Causes of the Great Recession Ira Rennert High-frequency trading Subprime mortgage crisis Subprime crisis impact timeline
is foaf:primaryTopic of	wikipedia-en:Net_capital_rule

Faceted Search & Find service v1.17_git139 as of Feb 29 2024

Alternative Linked Data Documents: ODE Content Formats:

RDF

ODATA

Microdata

About

OpenLink Virtuoso version 08.03.3330 as of Mar 19 2024, on Linux (x86_64-generic-linux-glibc212), Single-Server Edition (378 GB total memory, 60 GB memory in use)
Data on this page belongs to its respective rights holders.
Virtuoso Faceted Browser Copyright © 2009-2024 OpenLink Software