Fast-growing Stone Ridge Asset Management has poached execs from Credit Suisse, BNP Paribas and Morgan Stanley in recent weeks.» Read More
Far more interesting than the details of Moody Analytics chief economist Mark Zandi’s proposal to rework the mortgage market are the meager gains he thinks it would obtain.
Zandi has a proposal to scrap Fannie Mae and Freddie Mac in favor of ten new companies that would guarantee mortgages with an explicit government guarantee.
He’s got all sorts of arguments about why this hybrid public-private system would be better than either a fully public or a fully private model. But look at what he thinks the system would achieve.
Federal prosecutors are announcing insider trading charges against four more hedge fund employees at 12:00 p.m. today.
But what's more interesting is this: Three of the four are hedge fund managers, which definitely increases the drama quotient. \(The other employee is an analyst.\)
My guess is that not many people who once worked for Goldman Sachs end up working for Playboy, but Judy Joo, a former Morgan Stanley and Goldman banker turned chef, is proving it's not unthinkable.
Countries must cut spending—but can't. (This and other depressing thoughts on the bond markets.) [CNBC via Reuters]
Rate hike in China. (Again.) [Financial Times]
Once again: Meredith Whitney under fire. [CNBC via NY Times]
What does a jump in cash purchases mean for the real estate market? [Wall Street Journal]
The worst Super Bowl commercial. [NY Times]
Gold up in London on speculation of Chinese demand. [Bloomberg Businessweek]
A tutorial: "Bond Trading 101—How to Trade Bonds" [BondSquawk | Hat Tip: Abnormal Returns]
Just how bad is the Greek RMBS market? (Hint: Bad.) [FT Alphaville]
LCH.Clearnet, a leading independent clearing house, is considering a plan to accept gold bullion as collateral against margined positions. London is the world’s largest market for over-the-counter gold trading.
"We’re looking at it closely,” confirms David Farrar, LCH.Clearnet Director of Commodities. “It’s something that, subject to regulatory approval, we’d look to introduce later this year." The Financial Services Authority \(FSA\) is the regulator of the financial services industry in the UK. A source, close to the situation, tells CNBC that nothing is currently pending before the FSA at this time on this matter.
Breaking BRICs: Geithner wants Brazil's help on undervalued renminbi. [FT]
Dueling slide shows: Berokwitz hits back at Einorn! [Business Insider]
Intense media navel gazing: AOL/HuffPo Edition. [CNET]
Common sense: Coming to TSA checkpoint near you? [NY Times]
Americans are getting poorer —unless they're not. [Economix]
Danaher's cash purchase of the medical diagnostics company Beckman Coulter came in at $5.8 billion, well above the price point that many analysts would have pointed to for Beckman.
Rob Kindler, the head of M&A for Danaher's advisor Morgan Stanley, said today that the price was driven up by the access of private equity to easy credit.
Dean Baker has provided a provocative and must-read response to the report of the Financial Crisis Inquiry Commission.
His basic response is that the entire premises of the commission was wrong. Instead of focusing narrowly on the “financial crisis” it should have asked how we got into an economic crisis.
“The FCIC investigated risky investments, lax regulation, excessive leverage. And it downplayed the more mundane, but vastly more important, collapse of the housing bubble,” Baker writes.
Jon Corzine is considering starting his own hedge fund, the Wall Street Journal reported Sunday on its online edition.
Morgan Stanley reported a much stronger-than-expected rise in quarterly profit, boosted by higher revenue from trading bonds and equities.
The Fed has removed one crutch for stocks and left another in place, Peter Boockvar tells CNBC.