Investors have been all but ignoring a fairly miserable earnings season as hopes proliferate that it's only a blip on the profit radar.» Read More
Is Goldman Sachs 'Opening Up'? [Wall Street Journal] "Goldman Sachs Group Inc., seeking to beat back criticism that it abused its muscle and trading savvy to put its own interests ahead of clients, agreed to release details on how and where the Wall Street giant makes its money. In a 63-page report set to be released Tuesday, Goldman says that for the first time in its 142-year-history, it will start disclosing how much revenue comes from the firm's own trading and investing, according to a copy of the report reviewed by The Wall Street Journal. "
Get Ready for More WikiLeaks [CNBC via Reuters] "WikiLeaks will step up its publication schedule of secret documents, founder Julian Assange announced Tuesday, promising more revelations based on the group's stash of confidential U.S. embassy cables and other leaks. Assange, 39, spoke to reporters outside London's high-security Belmarsh Magistrates' Court, where he and his lawyers appeared for a hearing in his fight against extradition to Sweden, where he is wanted in a sex-crimes inquiry."
Up and at 'em! Here's what you missed overnight and what you need to know to rock the Tuesday casbah:
Morgan Stanley to Spin Off Prop Trading [CNBC] After months of speculation—and non-denial denials—it's official: "Morgan Stanley will spin off its proprietary trading business into an independent firm in 2012, joining a host of Wall Street banks scrambling to comply with new rules that bar making market bets with their own capital. The unit, known internally as process driven trading, will be named PDT Advisers and will be run by Morgan Stanley's proprietary trading chief, Peter Muller. "
Treasuries Up—Again—On Eurozone Debt Deterioration [Bloomberg] "Treasury 10-year note yields fell for a third straight day for the first time since November amid concern about a bailout for Portugal, and as it joins Spain and Italy in plans to borrow at least $43 billion this week. Two-year note yields touched the lowest in almost five weeks as the cost of insuring Portuguese bonds against default rose to a record. Treasuries yields extended a drop from Jan. 7, after Federal Reserve Chairman Ben S. Bernanke said the labor- market recovery will be gradual and a report showed the nation’s employers added fewer jobs than forecast. The Fed bought $7.79 billion in Treasuries due from February 2018 to August 2020 as part of its plan to spur the economy."
The barrage of reports from strategists on what investors should expect in 2011 has finally subsided and now, Birinyi Associates has issued a report on the reports. In a brief paper called, “Themes and Stocks for 2011” Birinyi analysts have waded through the verbiage of Wall Street’s strategists and came away with a few nuggets of note.
Proponents of quantitative easing sometimes offer inflation risk assurances in the vaguest of terms.
Such as: "When the time comes, the Fed has the facility to rapidly soak up the excess liquidity in the system."
Earlier in the day, I wrote about recent data backing the success of quantitative easing in avoiding an outright deflationary scenario for the economy. In my piece, I picked up on an article by John McDermott, writing for the Financial Times blog Alphaville.
A complaint filed by the SEC today alleges that Robert Feinblatt—a principle and cofounder of Trivium Capital Management—engaged in insider trading in Google stock, as well as in the stocks of other tech companies.
The complaint alleges that Feinblatt, along with Trivium analyst Jeffrey Yokuty and others, engaged in insider trading based on information from an "investor relations consulting firm" called Market Street Partners.
The business section of Sunday’s New York Times yesterday asked “Is Law School A Losing Game?” in its lead story.
It's the story NetNet has reported three times since December 31. "Getting Schooled In Law Loans ," "Law Degree, Never Used, For Sale On eBay ," and "Unused Law Degree: $200k On eBay, Going Once, Going Twice... ."
The glut of law graduates, paired with a struggling economy, is creating severe financial distress among the group. Many graduates owe far more than $100,000 in private loans.
Although it’s only been a couple of days since the Massachusetts Supreme Court handed down its ruling in the “Ibanez” case, analysts are already announcing that it won’t be as big of a deal as it might seem.
I don’t share their confidence.
Hedge funds have seen the worst start to the year since the financial crisis, as returns in January and March were both in the red.
The Fed indicated to Citi that it would get more time to fix "stress test" planning problems before rejecting its capital plan.
Goldman Sachs reported quarterly earnings and revenue that topped analysts' expectations on Thursday.