Your economics assignment for today
Read Paul Krugman's explanation of why the outsized profits just reported by Goldman Sachs and the investment banks is a bad sign for our banking system ... But there’s an even bigger problem: while the wheeler-dealer side of the financial industry, a k a trading operations, is highly profitable again, the part of banking that really matters — lending, which fuels investment and job creation — is not. Key banks remain financially weak, and their weakness is hurting the economy as a whole. [more...]
Date: 2009-10-19 11:29:08
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Investment Banks Behaving Badly, Aided by Government
“The Greed Merchants” is a book I mentioned in an earlier post entitled, “ A History Lesson in Financial Greed and Corruption “. It’s about the Investment Banking business. So how badly behaved can Investment Banks ... payers. In 1792 twenty four brokers and merchants got together in Wall Street to form what would [more...]
Date: 2009-04-06 13:21:23
Bank of America to use bailout money to increase bankster's salaries by 70%
Looks like that meeting with Obama was very productive ! Bank of America May Raise Investment Banker Salaries Bank of America Corp. plans to increase some investment bankers’ salaries by as much as 70 percent following ... Brian Moynihan, Bank of America’s president of investment banking and wealth management, wrote [more...]
Date: 2009-03-28 02:37:01
Britain Refuses To Do the Necessary
Mervyn King, the Governor of the Bank of England had the temerity to suggest that banks be broken up into retail banks and investment banks, thus reducing risk and making them smaller so they aren’t “too big to fail”. Today the Labor government shot back that such a solution is a 1930s solution, but these days it wouldn’t work. The conservatives suggested that they would only follow King’s suggestion if every other country did too. Which is to say, they wouldn’t. [more...]
Date: 2009-10-22 07:21:58
Morgan Stanley Breaks Loss Streak As Risk Pays Off
(Updates by rewriting throughout.) NEW YORK (Dow Jones)-- Morgan Stanley (MS) snapped three-straight quarterly losses on Wednesday as the investment bank revved up on risk and got some of its old swagger back. The investment bank's third quarter was highlighted by strong results in its fixed-income sales and trading, along with higher underwriting fees. Its move to diversify by taking a controlling stake in Citigroup Inc . (C) brokerage Smith Barney also helped drive results. [more...]
Date: 2009-10-21 17:13:13
Are Business Schools to Blame? See the Great Debate
As I wrote earlier in the week, there is quite a debate going over at the Harvard Business Review website about whether business schools are to ... it is true that a high proportion of them in recent years have gone into investment banking. There is a very simple explanation for this: investment banks were paying the most to attract the best [more...]
Date: 2009-04-03 17:34:40
Ex-UBS Executive Is Joining Blackstone Group
David Bradley of UBS resigned this week as global head of the investment bank’s chemicals practice to join the Blackstone Group. Mr ... . Bradley has 25 years of investment banking experience, with the last seven years spent at UBS. Before ... now to make their move, according to hiring officials inside a major investment bank. But where the bankers [more...]
Date: 2009-04-03 20:15:32
J.P. Morgan’s Global Head of Tech M&A Quits
Liam Vaughan, of Financial News, reports: J.P. Morgan Chase’s global head of technology M&A has resigned, ... senior banker to leave J.P. Morgan in recent weeks. Earlier this month, U.S. investment bank ... in transactions in the sector. This month, investment bank Greenhill announced the appointment of Kenneth [more...]
Date: 2009-03-23 17:03:36
It’s 2009. Do You Know Where Your Bank Analyst Is?
Research analysts have always had it fairly tough on Wall Street ... covering investment banks have left behind big banks to join boutiques: Meredith Whitney started ... Francisco boutique investment bank JMP Securities. Another analyst, Richard X. Bove, left one boutique [more...]
Date: 2009-03-26 20:21:29
BofA: A New Era in Investment Banking?
The jitteriest employees at Bank of America these days may be the investment bankers ... Orcel, to oversee the international business of advising companies on mergers and acquisitions ... in recent months stress “humility,” comments some bankers have taken as a dig at them. On a day-to-day [more...]
Date: 2009-02-20 14:44:00
The Best Way to Rob a Bank is to Own One
Sen. Smith, if you want to know how to get Oregon and the U.S ... merger and acquisition activity has left a far smaller number of banks, with assets far ... to combining commercial banking, investment banking, and insurance under one corporate roof. It’ [more...]
Date: 2008-09-24 06:24:45
Alternative Investments to Bank CDs - Annuities
Investors today are always searching for investments that are just right for their individual financial plans and goals. In today’s competitive investing environment there are many options open to the individual investor. Certificates of deposit from banks will maximize the return on your hard earned dollars by giving you competitive interest rates along with a wide range of maturities to fit your needs but are not the only investment option to employ. Whether you’re saving for retirement or [more...]
Date: 2009-08-05 01:39:57
CARTOON!
CARTOON! Tags: ECONOMY HUMOR Click for larger image Sep 24 07:39 Keith Richards, Cockroaches, and the Firm of Goldman Sachs By: ... will invest $5 billion in the investment bank Goldman Sachs, as part of the bank's efforts to raise $7.5 billion in fresh capital, a Goldman spokesman, Lucas Van Praag, said Tuesday. In return, Berkshire [more...]
Date: 2008-09-24 14:41:15
Gaming the Geithner plan, part II
From a recent Business Week article , here are some suggested possibilities: Banks may be able to finance the sale of their own troubled loans, ... . Starting with some of the capital infusion received last fall from the Treasury, a bank could invest ... the original bank's capital at risk in this web of deals would be almost nil. " This is going right [more...]
Date: 2009-04-06 11:09:31
J.P. Morgan Scores Investment-Banking (Rugby) Win in London
Vivek Ahuja , of Financial News, reports: Not content with trouncing most of its rivals in the league tables that rank investment banks by the volume of capital markets business handled, J.P. Morgan Chase flexed its muscle on the pitch to fend off more than a dozen challengers to retain its crown in the City Scrum touch rugby tournament [more...]
Date: 2009-03-26 14:26:14
How Wall Street Masks the Thick Red Ink of Buried Loses
Former hedge fund manager Shah Gilani says corporate assets can be accounted for in multiple ways, at the discretion of management ... : Who says accounting can’t be fun? When it comes to determining capital adequacy and the solvency of banks and investment banks gutted by this historic capital markets credit crisis, accounting cards [more...]
Date: 2008-09-11 15:55:53
Deal Makers: Morgan Stanley Bailout Banker Robert Scully Retires
Robert Scully, the banker advising the U.S. government on the rescues of Fannie Mae, Freddie Mac and American International Group, ... Stanley for advice at least as far back as 1979, and the investment bank’s work has included many ... s retirement is a sign that Wall Street investment banks are facing a squeeze in the coming year [more...]
Date: 2008-12-12 14:29:00
London Calling at Moelis & Co.
Harry Wilson, of Financial News, reports from the investment-banking job front ... of Moelis & Co.’s London office, Kristian Bagger, has recruited his first staff since the boutique U.S. investment bank’s branch opened for business last month, according to people familiar with the matter [more...]
Date: 2008-10-27 15:59:25
Bill Moyers with William K. Black: financial meltdown driven by Known Widespread Fraud by Government and Banking Industry
This transcript spells out why it NEVER mattered who was elected President this past Novermber. The American Taxpayer has become a fool who is forced to fund via the taxes they pay the active predatory fraud of the U.S Banking, Financial, and Wall Street Investment Banks as well as both political parties of our Federal Government [more...]
Date: 2009-04-06 18:08:55
Boutique의 정의
지난 주말 양깡님 과 만나 압구정에서 커피한잔을 했다. 이런 저런 이야기를 하다가 양깡님이 "새로 시작하시는 사업에 부티크(Boutique)라는 명칭을 붙이신 것 같던데 그게 무슨 뜻이죠?"라고 물었다 ... refer to a specialised firm such as a boutique investment bank or boutique law firm. The word ... : wikipedia ) A boutique, from the French word for "shop," is a small shopping outlet [more...]
Date: 2009-03-23 00:47:15
Kenyan fund managers turn their backs on Ethiopian bank
By Emmanuel Were | Business Daily NAIROBI, KENYA — Local fund managers showed little interest in a private placement by an Ethiopian investment bank for lack of knowledge of investment opportunities in the country. Access Capital, based in Addis Ababa, sought to raise between Sh800 million and Sh1.2bn to fund investments in real estate [more...]
Date: 2009-04-06 20:52:28
Finance Layoffs: Wells Fargo, BOA, Barclays and more
Two weeks into the New Year, and Wall Street firms continue to issue pink slips ... will cut 2,100 jobs in its investment banking and investment management units. In particular, layoffs will come from Barclays Capital, Barclays Wealth and Barclays Global Investors.BB&T Corp [more...]
Date: 2009-01-16 19:23:31
Bill Maloni: How I would Remake Federal Financial Regulation
Put all of the authority in one institution, under one person–the Fed Chairman–and let the Federal Reserve sort out the regulatory pieces over banks, ... for the mortgage finance industry. Home loans were not big banking business, then. They are today ... thrifts, insurance companies. investment banks, holding companies, hedge funds. The Fed can have “ [more...]
Date: 2009-03-31 07:01:43
Home Shopping Latino Retains JPC Investment Group for Investment Banking Services
MIAMI, Fla., Sept. 11 (SEND2PRESS NEWSWIRE) -- Home Shopping Latino, Inc. (OTC: HSPL - HSPL.pk) ... our corporate strategy through a wider audience, which will be integral as we further implement our acquisition strategy outlined earlier in the year. We look forward to a beneficial and productive [more...]
Date: 2008-09-11 10:51:05
Putting the Genie Back Inside the Bottle
The genie, in the form of the Federal Reserve, has granted the markets a lot more than three wishes over the course of these challenging economic ... Reserve discount window for investment banks prior to their conversion to commercial banks ... (Troubled Asset Recovery Program), TALF (Term Asset-Backed Lending Facility) and PPIP (Public-Private [more...]
Date: 2009-04-05 15:43:39
Valuing Toxic Waste
graphic by Brooks Elliott Treasury Secretary Tim Geithner asked the public for suggestions about valuation of the toxic waste taxpayers are ... bank, or an investment bank, or some other financial institution. The sponsor sells the debt [more...]
Date: 2009-02-12 01:22:25
Company News for October 22, 2009 – Corporate Summary
• Potash (NYSE:POT) reported third-quarter earnings of 82 cents a share, versus Zacks estimates of 82 cents, as revenues fell 64% to $1.1 billion. Citing continued caution among fertilizer customers, the firm projected fourth quarter earnings of 65 to 85 cents a share • Credit Suisse (NYSE:CS) reported net profits of $2.33 billion on a surge in investment banking operations and strength in its private banking arm. [more...]
Date: 2009-10-22 14:30:15
GOP Declares War On ACORN Shakedown Of Banks
WASHINGTON (AP) - Conservative Republicans are capitalizing on the troubles of community activist group ACORN—ranging from charges of voter registration fraud to embarrassing videos of its employees—to revive their long-standing fight against a federal law that grades banks on their investments in poor and minority neighborhoods.The 1977 Community Reinvestment Act was intended to end redlining, a practice in which banks in effect walled off many inner-city neighborhoods from mortgage loans. [more...]
Date: 2009-10-13 08:54:12
Private Banking using your IRA
by John krol Boomers Bank In investment finance, private equity real estate is an asset class consisting of equity and debt investments in property. Investments typically involve an active management strategy ranging from moderate reposition or releasing of properties to development or extensive redevelopment. Investments are typically made [more...]
Date: 2009-03-12 04:56:58
Will Suit Against UBS Have Broader Impact?
A lawsuit brought by a Connecticut hedge fund over collateralized debt obligations sold by UBS has some industry observers suggesting that the case may end up have broad legal implications for ratings agencies and investment banks that sold toxic mortgage-backed securities before the collapse of the financial markets.In a case being heard in Connecticut Superior Court, Stamford, Conn.-based hedge fund Pursuit Partners claims that UBS used secret insider information obtained from its relationship [more...]
Date: 2009-09-16 11:28:59
What To Do With All Those Important Documents.
You know you have piles of them - tax returns, insurance documents, old bills, receipts, and bank statements ... . Bank, Investment, Retirement Statements Hold on to those quarterly statements until [more...]
Date: 2009-04-06 13:00:46
GOP Uses ACORN To Fight Bank Redlining Law
WASHINGTON — Conservative Republicans are capitalizing on the troubles of community activist group ACORN – ranging from charges of voter registration fraud to embarrassing videos of its employees – to revive their long-standing fight against a federal law that grades banks on their investments in poor and minority neighborhoods. The 1977 Community Reinvestment Act was intended to end redlining, a practice in which banks in effect walled off many inner-city neighborhoods from mortgage loans. [more...]
Date: 2009-10-12 21:03:22
Economic Cycle Theory
The Daily Reckoning Everyone and everything is getting higher and higher. Led by the investment banks, U.S. stocks are reporting earnings that “beat analyst’s expectations.” The Dow is over 10,000 again. Even oil is trading at $75. Keep in mind most of the earnings news is garbage. Earnings are whatever an accountant wants them to be. Compared to last year – which was a shocker – this year’s earnings are bound to be better. [more...]
Date: 2009-10-15 04:20:54
Senior Financial Analyst (Sharjah)
Employer: First SelectIndustry: Finance and AccountsLocation: Sharjah, UAEOur client, a multinational petroleum company is looking for a Senior Financial Analyst. The ideal candidate should have at least 2-3 years post qualification experience in the Financial Services industry/ Investment Bank, Private Equity or an international Consulting practice. Strong knowledge of Global markets. Responsibilities would be: Responsible for analyzing corporate financial position and financial forecasts. [more...]
Date: 2009-06-14 13:02:54
Money flows from Wall St. to Washington
The Wall Street Journal reports that political contributions to lawmakers in Washington from some of the biggest banks on Wall Street are on the rise, providing this compelling graphic to help make the case that nowhere is there a better leveraged investment than when big banks buy influence with politicians. It's amazing how millions of dollars sent to elected officials as campaign contributions eventually transform into sums well into the billions later on... [more...]
Date: 2009-10-22 18:07:00
Goldman Cannot Sustain Rally
Equity investors expected Goldman Sachs to perform well. The venerable investment bank did not disappoint. Meanwhile, Citigroup’s loss was less than expected, but failed to fuel a further DOW Jones rally as equities slipped under the esteemed 10,000 mark. On Wednesday “JPMorgan set a high bar; a bar that is tough to beat for other banks,” said Tim Ghriskey of Solaris Asset Management. Investors agreed that the 10,000 threshold might be difficult to sustain. Goldman’s stellar earnings are [more...]
Date: 2009-10-15 19:31:22
Amazon and the Art of the Private Deal
Amazon.com’s recently announced $850 million acquisition of Zappos.com — the largest in Amazon’s history — highlights the differences between private and public transactions. It also illustrates, once again, the somersaults that investment banks go through to try to apply traditional valuation analysis in acquisitions of privately held technology start-ups, even those as established as Zappos. And Zappos is not even really a tech start-up; it is just an online shoe store. Steven M. [more...]
Date: 2009-07-28 18:22:14
Macquarie adds to star hires
Macquarie Group has made the latest in a string of high-profile international hires after naming Sam Small, a former managing director of Citigroup’s M&A; unit, to head its European M&A; business on Tuesday. It comes as the Australian investment bank boosts its Asia, US and European advisory capability partly through an acquisition spree that includes its deal last week to buy US boutique bank Fox-Pitt Cochran Caronia Waller for up to $147m. [more...]
Date: 2009-10-07 03:51:06
Betting On Tulips And Houses Is So Passé…How About On Death?
This sort of thinking is exactly what we need to turn things around. After the mortgage business imploded last year, Wall Street investment banks began searching for another big idea to make money. They think they may have found one. The bankers plan to buy “life settlements,” life insurance policies that ill and elderly people sell for cash — $400,000 for a $1 million policy, say, depending on the life expectancy of the insured person. [more...]
Date: 2009-09-06 15:12:56
Citi to Integrate Corporate and Investment Banking - 10 Years Too Late
Citigroup is creating a unified global banking group? This is almost a joke - talk about anti-climactic and too little/too late ... merger was that nobody in power wanted to make a hard decision, especially as it related to integrating ... post:Illusions of equality and fairness. Duplicate functions were preserved on the relationship side [more...]
Date: 2008-12-18 05:42:20
Matt Taibbi, "Wall Street's Naked Swindle"
"Wall Street's Naked Swindle" by Matt Taibbi "A scheme to flood the market with counterfeit stocks helped kill BearStearns and Lehman Brothers — and the feds have yet to bust the culprits." "On Tuesday, March 11th, 2008, somebody — nobody knows who — made one of the craziest bets Wall Street has ever seen. The mystery figure spent $1.7 million on a series of options, gambling that shares in the venerable investment bank Bear Stearns would lose more than half their value in nine days or less. [more...]
Date: 2009-10-19 18:54:00
Frontrunning: October 21
Zero Hedge Goldman Sachs anti-communist pearls of wisdom: “pay inequality helps everyone” ( Bloomberg ) Wells Fargo reports better earnings on FDIC/Wachovia generosity ( Bloomberg ) What, no multi-trillion record principal revenue? Morgan Stanley beats estimates on higher investment banking fees ( Bloomberg ) Euro at $1.50 – a disaster or an alibi? [more...]
Date: 2009-10-21 15:20:19
DrumBeat: July 13, 2009
Speculators leave oil market as regulator mulls crackdown NEW YORK (MarketWatch) — Big speculators such as hedge funds and investment banks have sharply reduced their buying positions in oil futures in recent weeks, just as regulators are considering setting limits in energy speculation. The drop in speculative positions likely contributed to last week’s 10% slump in oil prices — the biggest weekly loss in six months, analysts said. [more...]
Date: 2009-07-15 17:32:24
Talent, Revenue Shifting to Boutique Investment Banks
The $500,000 cap on executive pay at TARP banks has sparked concerns that the government is likely to over-regulate the entire industry…laying out the welcome mat for top talent at smaller firms. The WSJ , CNBC , Crain’s New York and the FT have all published recent reports that right now big earners will seek other opportunities, [more...]
Date: 2009-02-10 12:52:39
What The IMF Would Say To The US, If It Could
Megan praises this new piece by Simon Johnson and is especially impressed by this list: In a society that celebrates the idea of making money, ... insistence on free movement of capital across borders; • the repeal of Depression-era regulations separating ... ; • major increases in the amount of leverage allowed to investment banks; • a light [more...]
Date: 2009-03-28 14:24:00
Forex Trading, Is it right for you?
by G. Malone Forex trading is the foreign exchange market where currencies are traded ... you will find inter-bank market which has large investment banking firms and institutions that deal [more...]
Date: 2009-04-05 14:43:35
DrumBeat: July 13, 2009
Speculators leave oil market as regulator mulls crackdown NEW YORK (MarketWatch) -- Big speculators such as hedge funds and investment banks have sharply reduced their buying positions in oil futures in recent weeks, just as regulators are considering setting limits in energy speculation. The drop in speculative positions likely contributed to last week's 10% slump in oil prices -- the biggest weekly loss in six months, analysts said. [more...]
Date: 2009-07-13 13:51:10
The Complete Guide to Investing in Short Term Trading: How to Earn High Rates of Returns Safely: Alan Northcott
Editorial Reviews Short-term trading refers to the practice of buying and selling financial instruments within the same trading week or, at most, ... investors. Many traders are bank or investment firms employees working in equity investment and fund [more...]
Date: 2009-04-06 06:44:26
Economic Cycle Theory
Everyone and everything is getting higher and higher. Led by the investment banks, U.S. stocks are reporting earnings that "beat analyst's expectations." The Dow is over 10,000 again. Even oil is trading at $75. Keep in mind most of the earnings news is garbage. Earnings are whatever an accountant wants them to be. Compared to last year - which was a shocker - this year's earnings are bound to be better. [more...]
Date: 2009-10-15 04:12:56
Deserted shopping mall bleak symbol of Fed bailout
Alister Bull Thursday, October 22, 2009 OKLAHOMA CITY (Reuters) – A $29 billion trail from the Federal Reserve’s bailout of Wall Street investment bank Bear Stearns ends in a partially deserted shopping center on a bleak spot on the south side of Oklahoma City. The Fed now owns the Crossroads Mall, a sprawling shopping complex at the junction of Interstate highways 244 and 35, complete with an oil well pumping crude in the parking lot — except the Fed does not own the mineral rights. [more...]
Date: 2009-10-22 17:25:02
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