Wall Street Journal: Markets: Deals & Deal Makers

Global regulators must revamp the way they assess new threats to the financial system, as the tide of postcrisis rules crests and the financial sector evolves, a top Federal Reserve official said.

Billionaire investor Seth Klarman will no longer manage his family foundation’s money, a move that is expected to give him more time to manage his $27 billion hedge-fund firm.

Brokerage firms and banks have complained for years about rising fees at big stock exchanges. Now, they are getting a glimpse of the potential profits the exchanges could be making from them.

A self-published author and investor wrote a novel loosely based on Warren Buffett’s Berkshire Hathaway. Then he got an unexpected call from Mr. Buffett’s right-hand man, Charlie Munger.

The Federal Reserve has raised short-term rates five times since late 2015, but banks largely stood pat on deposit rates for rank-and-file customers. Now, with the Fed expected to lift rates again this week, there are signs this could change.

Citigroup reported its largest quarterly loss ever after its earnings were wiped out by a $22 billion charge related to the new tax law.

The debts of Donald Trump and his businesses are scattered across Wall Street banks, mutual funds and other financial institutions, broadening the tangle of interests that pose potential conflicts for the incoming president’s administration.

Platinum Partners, a New York firm with close ties to the Jewish community, has reported strong returns for years but now is liquidating. In addition to a probe into alleged bribery, investigators are looking into whether Platinum had been paying some reported investment gains to exiting investors with money from incoming ones.

In post-Brexit vote trading, the winners were computer-model-driven firms that favored high-quality government bonds, gold and safer currencies like the yen, while mostly avoiding riskier bets like oil and emerging markets.

If there wasn’t so much pain involved, investors in the biggest U.S. banks might enjoy the irony: little more than six hours after the U.S. Federal Reserve released its first round of bank ‘stress test’ results, financial firms and markets get a real-world version.