Some of the most powerful members of the business and investing community think the American economy is going to be just fine.» Read More
Geithner Warns on Debt Ceiling [Washington Post] I'm no policy genius—but the federal debt ceiling is not something either party should play political chicken with. Not smart: Not by a long shot. The Washington Post reports: "Treasury Secretary Timothy Geithner warned lawmakers Thursday that the national debt could hit the legal limit on federal borrowing as soon as March 31, and he urged them to act quickly to avoid a government default that would spark 'catastrophic economic consequences that would last for decades.'"
China's Charms Deconstructed [New York Times] Wait: China is buying European debt for its own selfish reasons? You mean, they aren't helping out just because they're nice boys & girls? This is shocking! Shocking I tell you! The Times Reports: "What’s with China’s charm offensive in Europe? Chinese officials have stepped up their vows of support for Europe in the past several weeks, and have grown increasingly vocal about pledging to help Europe contain a sovereign debt crisis and accelerate a recovery. This past week, Beijing renewed a pledge to buy debt from Spain and other countries feared to be facing a bailout.
ACA Financial Guaranty Corporation is suing Goldman Sachs over the deal that gave rise to fraud charges from the Securities and Exchange Commission last year.
ACA, a once high flying monoline bond insurance company, filed a law suit in New York today, claiming that Goldman had committed fraud and unjustly enriched itself in connection with the sythetic collateralized debt obligation called Abacus. ACA is seeking $120 million in compensatory and punitive damages.
ACA served as the “portfolio selection agent” and collateral manager in the Abacus deal, although the securities in the transaction were primarily selected hedge fund manager John Paulson.
Could a small Manhattan hedge fund be keeping the fact that it was raided by federal agents a secret from investors?
Back on November 22, the FBI raided three hedge funds—Diamonback Capital management, level Global and Loch Capital management.
But about a week before that the Feds searched the offices of another hedge fund—whose identity remains a mystery.
One thing that seems to have escaped everyone’s notice here is that Goldman Sachs —the reviled villain of Wall Street—is actually serving the two traditional functions of an investment bank by doing this deal with Facebook.
The momentum is picking up against the health care repeal vote. The Congressional budget office issued a statement saying they estimate the repeal would increase the deficit by $230 billion by 2021.
This statement came to no surprise by those following the debate. Many Democrats have already been saying this. But now that the genie is out of the bottle. I decided to ask Congress Michael Burgess \(R-TX\) a physician and member of the Health Subcommittee on this thoughts on the upcoming vote.
Goldman Sachs' plan to offer clients up to $1.5 billion in Facebook equity has many on Wall Street wondering if the vampire squid has a secret plan to force the social network to go public.
“Maybe it’s just envy talking—we would have killed to be in this deal—but part of me wonders if Goldman is pulling a fast one on Facebook,” an executive at a rival Wall Street firm told me last night.
Americans are passionate about shopping and the latest data makes it clear that they are embracing the online model in record numbers.
Can malls survive the onslaught in online shopping? The opportunity to eat at your desk and shop simultaneously?
Here's what you should be reading this morning.
1. 53 things I learned from Stocktwits founder Howard Lindzon. #1: make friends through violence.
2. Was the first Wikileaks really started in 1964 ?
3. Quora is quickly overtaking Twitter .
4. It's quite possible we could have10% unemployment forever .
Felix Salmon raises some interesting questions about Goldman Sachs' stake in Facebook.
The basic question he asks regards the letter and spirit of the Volcker Rule, which prohibits banking institutions from engaging in proprietary trading and other investments as principals.
Salmon writes "I’m not saying that the Facebook investment is illegal — for one thing, the details of the Volcker Rule have yet to be fully hashed out, which means it doesn’t yet have the full force of law. But this does look like it violates the spirit of Dodd-Frank."
The Volcker Rule, of course, is intended to limit the risk exposure of bank holding companies.
CNBC's Patti Domm and Jeff Cox discuss the jobs report and the current dilemma of long-term unemployment.
CNBC's Patti Domm and Jeff Cox discuss the recent GDP numbers and what factors have been affecting it.
Investors give and investors take away, and nowhere has that been more true lately than in value stocks.
Bank of America asked a federal judge to throw out a verdict finding it liable for fraud over defective mortgages sold by its Countrywide unit.
An influential U.S. financial services industry group is downplaying concerns about possible breaches at JPMorgan Chase and other banks.
Since 1950, September is the worst performing month for the S&P 500 index.