CEO Brian Moynihan said the bank faces up to an additional $9 billion in costs related to the financial crisis and mortgages beyond its reserves.» Read More
The Wall Street Journal's Mary Pilon interviewed Alex Gibney , the filmmaker behind the Eliot Spitzer scandal documentary "Client 9."
Our favorite part of the interview was learning that the prostitute who was allegedly most frequently patronized by Spitzer is now a commodities trader.
With all the second guessing of QE2 — and even chatter about a return to a gold standard—Nouriel Roubini is very clear about the primary challenge to the U.S. economy: "The risk is deflation—not inflation."
Roubini, of course, has been on record supporting quantitative easing for some time . But, in my interview with him, he made clear that he's still not sanguine about growth prospects—even after the injection of a fresh $600 billion.
What value does he see in QE2 (Federal Reserve easing quantitative easing)? Principally, he believes it's a necessary evil for allowing the U.S. economy to steer clear of catastrophe.
"It certainly reduces the tail risk of a double dip [recession]," he said."And it reduces the risk of outright deflation or the expectation of deflation."
The Capital Markets Subcommittee was put on the map by Representative Paul Kanjorski (D-PA), the present chairman of the subcommittee who penned the "Too Big To Fail" legislation otherwise known as the "Kanjorski Amendment."
Kanjorski lost his re-election bid and now with the Republicans taking control in the House, ranking member Scott Garrett \(R-NJ\) will be taking the gavel and with it, try and enact his plans in overhauling the financial services sector. Garrett got right to the point on what he plans to do once he takes the chairmanship.
Goldman Sachs submitted a withdrawal notice to Philip Falcone's Harbinger Capital Partners, a high-flying hedge fund that once managed $26 billion. Why did Goldman decide to pull all of its $120 million from Falcone's fund?
Investors in Falcone's main hedge fund are limited to withdrawing 25 percent of their investment each quarter, so Goldman will be an investor in the hedge fund through all of 2011.
The move to withdraw the funds was first reported by Bloomberg's Katherine Burton .
There's been a lot of speculation about the cause of Goldman's withdrawal. Burton wrote that the move came after Falcone withdrew $113 million from a fund to pay his taxes. The fact that the fund had suspended redemptions—meaning investors could not pull out—angered some investors. Why should the fund manager be able to pull money out of the fund when investors are blocked, some asked.
One of the better things I have seen this morning.
The global backlash against QE2 (Federal Reserve quantitative easing) is growing and the showdown between the G-20 nations, President Obama and U.S. Treasury Secretary Timothy Geithner is on. The outcry of criticism over the Federal Reserve's policy of putting more dollars into the economy by buying government bonds has been attracting criticism at home and abroad.
I decided to get the perspective on what to expect from at the G20 meeting in Korea as well as the United States new role as currency "villain" from Jim Rickards, Senior Managing Director of Market Intelligence from Omnis.
Foreclosures Drop: The "Artificial" Cause is Likely the Foreclosure Moratorium (CNBC) Analysts believe banks' suspension of foreclosure activity is the reason behind the decrease in number of homes foreclosed upon in October. (Foreclosures dropped 4.39 percent in October since the prior month.) Was does that mean? We may be seeing foreclosure rates rise jump up again at the beginning of next year.
Is Gold Really At a Record High? (New York Times) Not if you index for inflation and look at real, instead of nominal, prices. The same holds true for other commodity prices, such as oil. The question on the table: Are the alarms being raised over inflation overstated—because we haven't adequately indexed for inflation?"
The bipartisan committee working on deficit reduction announced a plan today to reduce cost-of-living increases in Social Security : But don't worry—it looks like that proposal is going nowhere fast.
But there's more: Not only are there provisions for freezing Social Security cost-of-living increases, but a Bloomberg article on the same topic suggests the possibility of an increase in retirement age as well. (Breathe deeply : The retirement age increases wouldn't kick in until at least 2050.) There are also additional proposals being floated by the commission for the reduction of federal expenditure on Medicare.
How bad is the situation? And does the system really need a dramatic overhaul?
In an SEC filing , GM has provided details about an unauthorized email sent out by a banker to institutional investors that violated its regulatory quiet period before its public offering.
The filing may shed light on a mystery that developed last week. UBS , which had previously been named as an underwriter in the IPO, was quietly dropped from this role in the deal.
DealBreaker’s Bess Levin reported at the time that “a senior high yield analyst at UBS sent out a note last night to a bunch of clients that included his musings on the valuation."
John Carney is a senior editor for CNBC.com, covering Wall Street and finance and running the NetNet blog.
Jeff Cox is finance editor for CNBC.com.
Lawrence Delevingne is the ‘Big Money’ enterprise reporter for CNBC.com and NetNet.
Stephanie Landsman is one of the producers of CNBC's 5pm ET show "Fast Money."