PwC, the administrators of Lehman Brothers International (Europe), has published its first interim client money distribution update. The update confirms that preparations are underway for the first interim client money distribution, which is expected to take place in the first half of 2013. Client money claimants (and potential client money claimants) are urged to take action to ensure that they have the opportunity to participate in the distribution. A further communication will be published during the first half of February 2013. Lofchie Comment: See also Bleak House.

President Obama nominated Mary Jo White to serve as Chairman of the SEC. SEC Commissioner Elisse Walter has been serving as interim SEC chairman since Mary Schapiro stepped down last December. See: SIFMA Statement on Nomination of Mary Jo White for SEC Chairman; Chairman Hensarling Comments See also: MSRB Issues Statement on Nomination of SEC Chair; NASAA Statement on Nomination of Mary Jo White as SEC Chair. Related News Story: SEC Chairman Mary Schapiro to Step Down; Commissioner Elisse Walter to Become Chairman (with Lofchie Comment).

The European Banking Authority ("EBA") adopted a formal recommendation on the development of recovery plans in respect of 39 named banks in the European Union, including Deutsche Bank AG, Commerzbank AG and BNP Paribas SA. Suggestions for key elements to be addressed in a recovery plan include: information on the bank and its governance structure; options available in a crisis and an assessment of their potential impact; and planned measures for facilitating future updates of the plan or its implementation in times of crisis. The recommendation is addressed to the home supervisors of the named

GAO issued a report in which it reviewed the progress of financial regulatory reform. According to the finding, implementation of reform is being delayed by the number, complexity and interconnectedness of the issues to be addressed, as well as a fragmented regulatory structure. Lofchie Comment: While the report is explicitly about the progress of Dodd-Frank rulemaking, it is implicitly a negative comment on the organization of our regulatory system and on the the "benefits" of Dodd-Frank. As to the regulatory structure, I quote from the GAO Report (page 3 in the Highlights): "The efficiency

FINRA has filed a Temporary Cease-and-Desist Order ("TCDO") against Herkimer, NY-based Westor Capital Group, Inc. and its President, Chief Compliance Officer and Financial and Operations Principal, Richard Hans Bach, to immediately stop the further misappropriation and misuse of customer funds and securities. FINRA is seeking the TCDO to prevent further customer harm that would likely continue before a formal disciplinary proceeding against Westor and Bach could be completed. View Order in full here (links externally to FINRA website). See also: Press Release.