“From 2006 to 2009, Provident Asset Management raised $485 million from 7,700 investors who were drawn to its promises of annual returns as high as 18 percent on oil and gas assets. Law firm Mick & Associates helped. Provident paid Mick to provide “due diligence” reports to help brokers decide whether to recommend the investments […]
“Sales of new U.S. single-family homes tumbled to their lowest level in eight months in March, dashing hopes for a quick turnaround for a sector that fell into a soft patch last summer. “The Commerce Department said on Wednesday sales dropped 14.5 percent to a seasonally adjusted annual rate of 384,000 units. It was the […]
“The Justice Department’s criminal division, which oversees some of the biggest investigations into Wall Street and corporate crime, is adding to its ranks. “Marshall L. Miller, a longtime federal prosecutor in Brooklyn, was named to the criminal division’s No. 2 spot. As principal deputy and chief of staff to the criminal division’s leader, Mr. Miller […]
“The former Nvidia employee who the authorities contend supplied inside information about the chip maker’s earnings to a group of hedge fund traders and analysts has reached a settlement with securities regulators, the regulators said on Wednesday. “The information about Nvidia’s corporate earnings that the employee, Chris Choi, provided was eventually shared among a group […]
“What looks like insider trading to one federal judge might not rise to the level of a crime to another. Or, in the case of two hedge fund managers fighting their convictions, to another three judges.” “Level Global Investors LP co-founder Anthony Chiasson and ex-Diamondback Capital Management LLC portfolio manager Todd Newman claim they were […]
“Much like the game of telephone, the final recipient of inside information may know little about who started the process or how many steps it took before arriving. When prosecutors want to pursue charges against the recipients of confidential information — the “tippees” — the issue is often how far down the chain they can […]
“A US prosecutor barely started her argument to defend an insider trading conviction when judges on a US appeals court stopped her in her tracks.” “They wanted to know if the government had shopped a case until it landed before a judge who saw the insider trading law the way prosecutors had interpreted it: a trader could […]
“(Reuters) – Barclays (BARC.L) will quit most of its commodities trading businesses, joining a broader retreat by banks as profits tumble in the face of tougher regulation.” “The British bank’s exit means three of the top five banks in commodities have significantly reduced or shuttered their natural resource trading arms since last summer, with profits hit by regulatory demands for lenders to hold […]
“Denmark’s financial watchdog is urging banks to put in place better checks and balances to prevent excessive bonuses it says may spur greater risk-taking.” “The warning follows a decision by the Financial Supervisory Authority this month to criticize Danske Bank A/S (DANSKE) for having a remuneration policy for key staff it said encourages “more risky dispositions” by […]
“A former Deutsche Bank (DBK) AG salesman’s admission in a Japanese court that he bribed a pension fund executive with lavish entertainment could attract the attention of prosecutors in other countries.” “The U.S. Department of Justice and other authorities may examine whether the practice was widespread at the bank and led to any violations of bribery laws after Shigeru […]
“The American middle class, long the most affluent in the world, has lost that distinction.” ‘While the wealthiest Americans are outpacing many of their global peers, a New York Times analysis shows that across the lower- and middle-income tiers, citizens of other advanced countries have received considerably larger raises over the last three decades.” “After-tax […]
“(Reuters) – The two men at the top of Citigroup Inc (C.N), the third-biggest U.S. bank and the most international, acknowledged on Tuesday that the company must do more to simplify itself.” “Asked at an annual meeting of shareholders whether Citigroup is too big to manage, Chairman Mike O’Neill said the task “is certainly harder” for its […]
“LONDON – The Financial Conduct Authority of Britain has added a former head of Britain’s Competition Commission and a former executive at Goldman Sachs and Lehman Brothers Holdings to its ranks as it looks to increase its expertise.” “The agency said on Wednesday that it had appointed two senior advisers: David Saunders, who retired from the Competition Commission in […]
“You can’t fully know Wall Street until you behold it in its purest distillation. This is the gift of Morning Money.” “Written by a man who calls himself Morning Money Ben, né Ben White, the newsletter targets a Washington, D.C., and New York audience. It began under the Politico banner as an offshoot of Mike Allen’s popular […]
“Tougher financial regulation has made European banks more resilient. But the drought of credit now confronting promising businesses across Europe is making the continent’s economy more fragile. These facts are linked – and the second cannot be ignored. “European banks have strengthened their capital reserves, which have doubled on average since the financial crisis. And […]
“Betting against U.S. government debt this year is turning out to be a fool’s errand. Just ask Wall Street’s biggest bond dealers. “While the losses that their economists predicted have yet to materialize, JPMorgan Chase & Co. (JPM), Citigroup Inc. (C) and the 20 other firms that trade with the Federal Reserve began wagering on […]
“A powerful group of shareholders is amplifying attacks on housing finance reform legislation as they await resolution of a major legal battle, attempting to slow momentum on the bill before it likely passes the Senate Banking Committee. “Several big hedge funds that stand to possibly win billions of dollars for their shares in Fannie Mae […]
“New York’s banking regulator is probing Ocwen Financial Corp (OCN.N), which collects mortgage payments, for possibly over-charging borrowers and investors to auction off foreclosed properties. “Benjamin Lawsky, superintendent of New York’s Department of Financial Services, said in a letter to Ocwen on Monday there were “significant concerns” the company and an affiliate, Altisource Portfolio Solutions […]
“Merrill Lynch is dangling a new incentive in front of its brokers by creating a “recognition club” for those who bring in $8 million or more a year from clients, more than doubling the top goals set by its securities industry rivals. “Until now, Merrill Lynch Wealth Management’s top recognition club was its “Circle of […]
“Goldman Sachs remained a partnership long after its rivals went public. When it finally took the plunge, in 1999, it revealed almost absurd levels of profitability: returns on equity of more than 40 per cent in some years, twice as high as its rivals. “A decade later, under chief executive Lloyd Blankfein, Goldman avoided the […]
“For months now, the U.S. Attorney for the Southern District of New York, Preet Bharara, has been boasting of his office’s perfect record on insider trading convictions and guilty pleas, which now stands at 80-0. But on Tuesday some potential cracks could appear in that pristine run. “The U.S. Court of Appeals for the Second […]
“Bank of America Corp. and the New York Stock Exchange were among dozens of exchanges, brokerages and traders sued over high-frequency trading by the city of Providence, Rhode Island, over claims they rigged securities markets to divert billions of dollars from buyers and sellers of shares. “Scrutiny of high-frequency trading and whether it gives some […]
“The debate over the decision to tear down the wall between commercial and investment banking in 1999 is an issue that still rages today as the financial industry and Wall Street critics spar over whether “too big to fail” banks remain. “On Friday, some potential kindling was added to the fire with the release of […]
“Reading The Times’s coverage of Bank of America’s quarterly loss last week, I almost felt sorry for the financial behemoth. It has mortgage troubles, you see. It has onerous legal costs. “The disappointing news shows how Bank of America is still paying for its mortgage problems nearly six years after the financial crisis,” the article […]
“The financial services industry this week lobbed hundreds of pages of comment letters the Federal Reserve’s way to convince the central bank that it should continue to allow the world’s largest banks to trade and invest in oil, electricity and other physical commodities. “On the flip side, critics of banks’ role in these markets told […]
“The Volcker Rule doesn’t go into effect until 2015, but that hasn’t stopped big bankers and their supporters in Washington from trying to undermine it. “The latest fight involves another complex Wall Street creation, a financial instrument known as a collateralized loan obligation. Big banks want to be allowed to own them but regulators say […]
“Since the collapse of Fannie Mae and Freddie Mac, American housing finance has essentially become a nationalised industry. The government now backs roughly 90 per cent of all new mortgages in the country, mainly through the failed mortgage finance companies that are in federal “conservatorship”. Washington therefore sets the price of mortgage finance – probably […]
“Part of London’s lucrative over-the-counter swaps market is set to come under direct US regulatory oversight as dealers in the UK capital wrestle with meeting tighter rules for overseas swaps dealers accessing US markets. “ICAP, the world’s largest interdealer broker, will next month begin trading US dollar-denominated swaps from its London home on a new […]
“Securities watchdogs have inadequate resources to cope with their new regulatory responsibility for monitoring systemic risk, the EU’s top markets regulator has warned. “Steven Maijoor, chairman of the European Securities and Markets Authority , said legislation passed last week by the European parliament amounted to the “biggest overhaul of the capital markets in a generation” […]
“Jacques de Larosiere says he is an isolated and modest man. Yet the 84-year-old former head of the International Monetary Fund is one of the most influential voices in European and global finance. “An eminence grise as respected among France’s political elite as in the heart of the law-drafting European Commission, de Larosiere finds himself […]
“U.S. appeals court is set hear a case whose outcome could make it harder for the government to prosecute insider trading and potentially jeopardize several high-profile guilty verdicts, including that of SAC Capital Advisors portfolio manager Michael Steinberg. “The question facing the 2nd U.S. Circuit Court of Appeals in New York on Tuesday is one […]
“The British bank Barclays will announce on Tuesday that it plans to exit large parts of its commodities business, a move that comes as large investment banks have struggled with heightened regulatory scrutiny and falling profits, a person briefed on the bank’s plans said. “Barclays is among the top five banks in the commodities business […]
“The U.S. Securities and Exchange Commission is weighing a requirement that brokers tell investors exactly where their stock trades go to be executed, a proposal that may address complaints that the decisions are sometimes made against the client’s best interests. “The proposal could give investors more insight into whether they are getting the best price […]
(Reuters) – Stocks rose 1 percent on Wednesday, advancing for a third straight session as Federal Reserve Chair Janet Yellen reaffirmed the central bank’s commitment to keeping interest rates low and Yahoo rallied. Data showing Chinese economic growth exceeded expectations and U.S. industrial production rose for a second straight month also improved sentiment, though Bank of America […]
(Reuters) – Wall Street’s self-funded regulator said on Wednesday it will consider proposing mandatory background checks for brokers after critics pointed to gaps in disclosures by some with checkered histories. The announcement by the Financial Industry Regulatory Authority (FINRA) comes at a time when the regulator is facing heightened scrutiny from legal groups and the […]
“(Reuters) – The U.S. Treasury Department is forming a new unit to monitor the municipal bond market, the Wall Street Journal reported, citing a Treasury official.” “By boosting the department’s monitoring of municipal finance, the Treasury hopes to better understand the ramifications of municipal-market stresses, the newspaper quoted the official as saying.” “The unit, which will […]
“(Reuters) – The People’s Bank of China (PBOC) is planning to ease restrictions now in place on foreign central banks and financial institutions trading in China’s interbank bond market, sources with direct knowledge of the situation told Reuters.” “The move, if implemented, would mark another incremental opening of China’s capitalmarkets, following an announcement on April 10 that Beijing would […]
“(Reuters) – Wall Street banks have mounted a massive legal defense of their physicalcommodities activities, in a last-ditch effort to convince regulators that chartering oil tankers and owning power plants pose no risk to the financial system.” “In a 54-page memo drafted by four leading law U.S. law firms and commissioned by six major financial industry groups, they […]
“Eurozone inflation in March dropped to its lowest level in more than four years adding pressure on the currency bloc’s monetary guardians to act either by cutting interest rates or embarking on an asset-buying programme to prevent outright deflation.” “The annual headline inflation rate in euro area was confirmed at 0.5 per cent in March compared […]
“Ginnie Mae has halted the transfer of mortgage servicing rights from Bank of America (BAC) to a nonbank servicer because the bank is missing documents such as recorded mortgages and title policies on the underlying home loans.” “Ted Tozer, the president of Ginnie Mae, says he has held up the transfer of servicing rights by […]
“(Reuters) – Deutsche Bank (DBKGn.DE) denied a media report that said its co-Chief Executives Anshu Jain and Juergen Fitschen could be replaced, possibly with former UBS (UBSN.VX) finance chief John Cryan.” “Germany’s Manager Magazin on Wednesday cited “insiders” saying Deutsche Bank supervisory board chairman Paul Achleitner was preparing to bring in a new chief executive.” “In a […]
“(Reuters) – Many of the factors driving the euro exchange rate to levels that have set off alarm bells at the European Central Bank are unlikely to go away on their own, part of the reason the bank has been threatening action.” “The euro is still off the peaks of 2011, but because inflation is […]
“Janet Yellen, in her first speech to a Wall Street audience since becoming Federal Reserve chair, emphasized her commitment to support the recovery even as full employment comes into view.” “Outlining a disciplined policy framework she uses, Yellen told investors to pay attention to shortfalls in both inflation and the jobless rate for signals on the Federal […]
(Reuters) – “Persistently low inflation poses a more immediate threat to the U.S. economy than rising prices, Federal Reserve Chair Janet Yellen said on Wednesday, stressing that the U.S. central bank would be delivering policy stimulus for some time to come.” “In her second public speech since taking the Fed’s helm, Yellen was careful not to predict […]
WASHINGTON — “Sens. Sherrod Brown, D-Ohio, and Elizabeth Warren, D-Mass., urged regulators on Wednesday to tighten restrictions on banks involved in physical commodities markets.” “The lawmakers, who have been vocal on the issue for months, submitted comments to the Federal Reserve Board, which has been accepting responses to a January notice that the agency is […]
“(Reuters) – Five former Bernard Madoff aides have asked a federal judge to throw out their convictions, three weeks after a jury found them guilty of fraud and conspiracy for helping Madoff conceal his multibillion-dollar Ponzi scheme.” “Former back-office director Daniel Bonventre, computer programmers George Perez and Jerome O’Hara and portfolio managers Annette Bongiorno and […]
“One of the unsettled questions from the financial crisis is whether the big banks have paid enough to cover the mortgage abuses they committed before the market collapsed.” “A settlement announced on Wednesday that involves Bank of America indicates that, in some cases, the banks could have been made to pay more than they have.” “Bank of […]
“Bank of America Corp’s (BAC.N) mortgage pain is lasting longer than expected, leading some investors to wonder if the massive expenses being incurred have become a recurring cost of doing business instead of being dismissed as one-time items.” “The bank on Wednesday posted $6 billion of litigation expenses for its first quarter, far exceeding the $3.7 billion […]
“Anemic results underscore how little fun it is to run a big bank these days. The $276 million loss that Bank of America announced on Wednesday, however, at least provides some valuable perspective.” “The bank, led by Brian Moynihan, was already expected to report a pretty low number because of its $3.6 billion mortgage settlement […]
“New York Attorney General Eric Schneiderman sent subpoenas to six high-frequency trading firms seeking information about special arrangements they have with exchanges and dark pools as well as their trading strategies, according to a person familiar with the matter.” “Chopper Trading LLC, Jump Trading LLC and Tower Research Capital LLC are among the firms, according to […]
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