Tuesday's Headlines: FINRA wants more power, says it can take on SEC duties

The Financial Industry Regulatory Authority (FINRA) wants more power, DealBook reports. The self-regulator, which already polices 4,500 broker dealers, told Congress it can also oversee 11,000 investment advisories now watched over by the Security and Exchange Commission.

FINRA is a non-governmental agency whose members are hedge funds and retail investment advisories. A congressional committee recently introduced legislation that would allow investment advisors to regulate themselves. FINRA made its statement ahead of a panel testimony scheduled for later today.

"The push has ignited concern among investment advisers and even some regulators, who question the wisdom of trusting Wall Street to police itself," DealBook writes. "Still, the SEC's own oversight is prone to blind spots. The agency examined only 9 percent of registered investment advisers last year."

State securities regulators oppose the plans.

"We see little benefit in constructing a new layer of bureaucracy, with its incumbent expense," Steven D. Irwin, Pennsylvania's securities commissioner, tells DealBook, noting that self-regulation as "typified by FINRA is replete with conflicts of interest."

Other News:

PNC CEO Jim Rohr says banking industry is sound; "this is not 2008." [BizJournals]

Berkshire Hathaway's new hire Wechsler mirrors Buffett's approach; invested in Bank of America. [Bloomberg]

US investors pull away from French banks on fears about credit. [New York Times]

August likely worst month for hedge funds since height of financial crisis. [Financial Times]

EU banks with contractually set salaries expected to cut jobs and bonuses. [Bloomberg]

Barclays Capital, Goldman Sachs, Morgan Stanley among investment banks seeking to expand in Indonesia. [Financial Times]

Citigroup lands deal to administer $4b of assets for Diamond Hill Capital Management. [On Wall Street]

Britain's banks nix 2011 hiring plans, seen cutting jobs: recruiting firm says. [Bloomberg]

French bank shares plunge despite Societe Generale's vow to sell assets. [Reuters]

Nomura wants to eliminate 5% of jobs in Europe to reduce spending. [BusinessWeek]

Italy's UniCredit CEO says mulling rights issue, asset sales to raise capital reserves. [Financial Times]

Deutsche Bank offers investment banking services through new smartphone App. [On Wall Street]