GO
Loading...

NetNet

More

  Friday, 17 Dec 2010 | 4:29 PM ET

Bank of England Swap Line: Slicing & Dicing the PIIGS

Posted By: Ash Bennington

The Bank of England and the European Central Bank announced a new swap line agreement today. But Portugal, Greece, and Spain need not apply—it only benefits the Emerald Isle.

Specifically, the BoE/ECB agreement creates a facility for providing Ireland with up £10 billion in sterling liquidity, should the need arise.

A swap line is a mechanism for central banks to exchange currency.

The technical name—a central bank liquidity swap—makes the concept sound more difficult than it is. The idea is pretty straightforward: Two central banks agree to exchange a fixed amount of currency, while simultaneously arranging a future date to swap the currencies back, effectively unwinding the position. The central bank on the receiving end can then inject the foreign currency into its own economy. This is useful, because private firms often have payables in foreign currencies. \(In this example, firms in Ireland may owe payments in British pounds.\) You can read more about swap lines on The Federal Reserve Bank of Atlanta's blog .

» Read More
  Friday, 17 Dec 2010 | 4:01 PM ET

Nicole Lapin's Short & Long List

Posted By: Nicole Lapin
Nicole Lapin
Nicole Lapin

Nicole Lapin, of CNBC's Worldwide Exchange, explains what she's long and what she's short this week.

» Read More
  Friday, 17 Dec 2010 | 3:56 PM ET

Bachus: The American People Have Told Us to Cut Spending and Debt

Posted By: Lori Ann LaRocco

It was a big week on Capitol Hill. First the Bush Tax Cuts were extended and the swine flu infected omnibus was pulled off the table in the Senate.

So now that Congress is wrapping up its session, what three-ring circus will Americans be watching next year?

Let's see, tax reform, fiscal reform and don't forget health care. Three huge issues that will surely be making headlines in 2011. I decided to catch up with incoming House Financial Services Chairman Spencer Bachus.

» Read More
  Friday, 17 Dec 2010 | 3:48 PM ET

We’ve Seen the Future And it Is Translated...Instantly

Posted By: John Carney

Get ready to be blown away.

You know how in a lot of science fiction characters use a “universal translator” that instantly changes words from alien languages into their own.

Well, now that is read. Word Lens is an app for your iPhone that translates any Spanish or English text your camera can see. Instantly.

Here’s an amazing video showing how it works.

Here’s how LifeHacker , which discovered this for us, describes the experience:

» Read More
  Friday, 17 Dec 2010 | 3:39 PM ET

Why Does the Pain in Spain Fall Mainly on the EU Plain?

Posted By: Ash Bennington

Yesterday, I wrote about U.S. exposure —or the broad lack of U.S. exposure—to Spanish sovereign debt.

(I picked up on Tracy Alloway's piece in the Financial Times Alphaville blog, which commented on a new report out from Goldman Sachs , regarding the national distribution of eurozone debt among investors.)

From my piece yesterday: "According to the Goldman report: 'US holdings of Spanish debt securities were particularly small, accounting only for about $26 billion or 2.5 percent of all foreign holdings.' To put that number in perspective, 'That’s about a tenth of France’s holdings, which stood at 24.5 percent or $252 billion.' Calculated by GDP, the French economy is only about 20 percent as large as the U.S. economy. So that means, on a GDP basis, France has invested in Spanish debt at a rate fifty times higher than the U.S."

» Read More
  Friday, 17 Dec 2010 | 2:18 PM ET

How 100 Years of Sex & Death Will Change Your Life Forever (Also: of Finance & Economics)

Posted By: Ash Bennington

Google has just quietly introduced a paradigm shattering technology —called Ngram—that graphs how frequently words are used in books over the course of time.

But back to Sex & Death .

If you click on the link above, you see a graph. That graph shows how often those two words —sex and death—appear in print between the years 1908 and 2008.

The data source driving the graph is massive: The 15 million publications Google Books has scanned since 2004.

» Read More
  Friday, 17 Dec 2010 | 1:30 PM ET

The Basic Theory of the FCIC Primer Is Right!

Posted By: John Carney

Guess what?

The Financial Crisis Primer published by the four Republican members of the Financial Crisis Inquiry Commission is pretty damn good.

Liberal critics of the Primer will be upset that it doesn’t mention their usual hobby-horses: no lambasting of pay structures, no tut-tutting about deregulation, no wailing about predatory lending, none of the tin-foil hat crowd’s worries about “shadow banking.”

Instead, the Primer gets right down to answering a few very basic—and very important—questions. The main questions are:

» Read More
  Friday, 17 Dec 2010 | 1:22 PM ET

The SEC Sniffs Along the Put-Back Apocalypse Trail

Posted By: John Carney

The Securities and Exchange Commission has begun digging into the earliest stages of the mortgage securitization process, according to Reuters .

Sources tell Reuters that the SEC is looking into whether loans were properly transferred to the trusts that issued mortgage-backed securities. The commission has sent Bank of America, Citigroup, JP Morgan Chase, Goldman Sachs, Wells Fargo and others subpoenas asking about their role as "master servicers" in mortgage securitization deals.

The latest probe is apparently an off-shoot of the probe into foreclosure practices.

» Read More
  Friday, 17 Dec 2010 | 11:12 AM ET

An Argument About Insider Trading

Posted By: John Carney
NetNet explains. »Read more
  Friday, 17 Dec 2010 | 11:00 AM ET

Here's The Good News: The Feds Only Arrested Alleged Bad Guys Thursday

Posted By: John Carney

The good news about yesterday's arrests is that federal authorities only arrested people who, if the allegations are correct, are truly bad guys.

There has been a lot of fear that the government was seeking to criminalize legitimate research that uncovered non-public information, which could affect the price of publicly traded securities. Much of the information we had about the nationwide insider-trading dragnet has come through leaks to The Wall Street Journal, creating an atmosphere of uncertainty and paranoia. Did the government have some new theory of insider trading that could include a much broader range of conduct?

» Read More

About NetNet

  • NetNet is where you'll find the low-down and the high jinks of Wall Street. It's the place for insider stories, trader gossip, and tales of the foibles of the moneyed crowd and the culture of finance.Wall Street news and commentary served fresh all day long.

 

  • Jeff Cox is finance editor for CNBC.com.

  • Lawrence Develingne

    Lawrence Delevingne is the ‘Big Money’ enterprise reporter for CNBC.com and NetNet.

  • Stephanie Landsman is one of the producers of "Fast Money."

NetNet TV

Wall Street