(Washington)

Advisors have been waiting with their fingers crossed in the hopes that the DOL rule might be done away with, and in its place, a new SEC rule installed. Well, it looks like a positive outcome might be on the cards. The SEC and DOL have been working on a joint rule for a few months and now it appears the new more harmonious fiduciary rule will debut this fall. Now the caveat to this news is that these are estimated dates based on various procedural deadlines, such as the DOL’s delay expiring in summer 2019, but experts in the space agree.

FINSUM: We think the SEC and DOL will debut a rule this fall for comment, probably in late fall, and then try to implement everything by July 2019. Stay tuned.

(New York)

One of the Financial Times’ most respected columnists has just published an article making a grim comparison. Saying that he dreads even mentioning it, John Authers argues that the current state of markets and the context of the losses are very similar to the summer of 2007, or the eve of the Financial Crisis. In particular, just like then, stocks moved higher even as bond yields did, all until a yield threshold is broken, when stocks finally panic. Then, even though fixed income started the worries, equity investors flee into the safety of bonds. The important extension of the argument is that all the associated fallout will not occur this time, as the economy is stronger and more balanced.

FINSUM: So this is only a half comparison. The actual market event may be similar, but the condition of the economy, and its link to markets is very different, and almost inarguably better this time around.

(New York)

It seems like every time there is a big plunge in the market over the last few years one can trace the root cause back to a few products traded by people, but more often, machines. Well, it is no different this time as Bloomberg says two tiny volatility products, which now only have $135m under management, were largely responsible for the selloff. One of the products is the VelocityShares Daily Inverse VIX Short-Term ETN, which will soon be delisted. Despite the small size of the products, traders closely monitor the products’ behavior, and that is said to have caused the panic, as traders predicted how the funds would rebalance and front ran that rebalancing.

FINSUM: Well, at least it was not an algorithmic disaster this time. This sounds a lot like good old fashion human gamesmanship.

(New York)

Goldman has been trying intensely for the last few years to develop a much bigger consumer side of its business. The bank has debuted consumer savings products and tried to extend its reach into consumer products generally. Now, it might be take a huge step. The bank is reportedly in talks with Apple to provide point-of-sale financing to customers who are buying Apple’s products. The bank sees an opportunity to provide lower interest financing than credit cards, where most people charge such purchases. The deal is not closed, and could still fall apart.

FINSUM: There is a whole slew of interesting considerations here. For one, will using Goldman Sachs for financing hurt Apple’s image? Two, is Goldman trying to make a push into credit cards with this move?

(Washington)

On the geopolitical side, most news is ominous. Countries disagree, threaten, embargo, or otherwise make antagonistic acts against one another. But sometimes you get a positive story. Today we want to report on one—the agreement between North and South Korea to compete under the same flag at the Olympics. The two countries, which have been at odds for many decades, will compete side by side in the games, with the women’s hockey team featuring players from both countries. Some see the agreement as placating an aggressive foe, but others see it as a sign of hope and progress.

FINSUM: We find this to be an undoubtedly positive progression, especially since just a couple of months ago the conversation was about how quickly North Korea could have tanks rolling through Seoul.