Hedge funds designed to profit from choppy and down markets have mostly underwhelmed in October.» Read More
The SEC has just charged Jonathan Star Bristol, an attorney for the former financial advisor Kenneth Ira Starr, with aiding and abetting Bristol's multi-million dollar fraud. The SEC alleges that Starr's crimes involved more than $25 million in stolen funds.
The charges stem from Bristol allowing his clients to use trust accounts as "conduits" for stolen money.
According to an official SEC communication : "The SEC alleges that Starr and two entities he controls — Starr Investment Advisors LLC and Starr & Company LLC — have made unauthorized transfers of money in client accounts that ultimately wound up in Starr’s personal accounts.
Morgan Sze—reportedly the highest paid trader at Goldman Sachs—is said to be leaving.
Think about this:
1) Goldman Sachs is the most profitable firm on Wall Street.
2) Most of Goldman's profits come from trading .
3) Morgan Sze is reported to earn more than all other players in the most profitable area of the most profitable shop on The Street.
This is a big story about a big guy.
So where is Morgan Sze going—and why?
Spanish Borrowing Costs Rise (Bloomberg) "Spanish 10-year bonds declined, pushing yields close to their highest in two weeks, after Spain’s borrowing costs rose at its last debt sale for this year amid mounting concern over the country’s credit quality. German 10-year yields were within three basis points of the highest since May 3 even after a report showed the euro-region’s manufacturing and services industries slowed more than economists forecast in December. Moody’s Investors Service said yesterday it may downgrade Spain’s credit rating, citing the cost of rescuing its banks. European Union leaders begin a two- day meeting in Brussels today to discuss the creation of a permanent crisis-fighting mechanism."
As EU Summit Begins, Divisions Remain (Reuters) European leaders sought to paper over deep divisions on how best to resolve the debt crisis ahead of a summit on Thursday, and Spain and Portugal came under renewed pressure to get their finances in order. German Chancellor Angela Merkel said she had settled a dispute with Jean-Claude Juncker, the chairman of the Eurogroup of countries, over the idea of issuing euro area bonds, but differences still looked likely to arise at the summit. 'Jean-Claude Juncker and I had a long telephone conversation and cleared up the issue a while ago,' Merkel said in an interview with Germany's Bild newspaper published on Thursday. 'With so much at stake, the emotions sometimes get involved.
'Juncker, who is a strong advocate of issuing so-called E-bonds, which Merkel says are unnecessary and would dent Germany's credit standing, also said the disagreement was resolved, but has hinted he could raise the proposal anyway.
Violence Erupts in Greece during Austerity Protest (New York Times) "Thousands of Greeks took to the streets of the capital on Wednesday for a protest against a fresh wave of austerity measures which was marred by violence as a general strike brought international travel and public services to a standstill. The walkout — Greece’s seventh general strike this year — grounded flights, kept ferries in ports, halted train services and shut down government offices and schools while leaving hospitals to operate on emergency staffing and causing a news blackout as journalists joined the action. Public transport was operating for most of the day to enable Athenians to attend demonstrations in the city center."
CNBC's Diana Olick on Negative Equity \(CNBC\) "There was a lot of talk last week about how negative equity, now at 22.5 percent of all homes with mortgages, according to CoreLogic, will affect the housing recovery. Then mortgage rates popped up to 5 percent overnight, thanks to the 10-year Treasury, and more folks voiced concern over today's potential home buyer and his or her ability to take advantage of this low-priced housing market. Owing more on your mortgage than your home is currently worth doesn't necessarily mean you can't afford your monthly mortgage payment or that you're going to go about your day any differently, other than feeling a little financially depressed. While it may make some more likely to walk away or 'strategically default,' most won't."
Salmon's basic thesis is this: that "the leverage-is-good meme simply refuses to die"—even though we should know better by now, especially n the wake of the last financial crisis.
He makes some excellent points about the article.
And his critique does make you wonder about the broader prevailing ethos surrounding debt on Wall Street in general.
To wit: Do all former leverage junkies live in perpetual danger of relapse?
The Consumer Price Index for Urban Consumers—commonly referred to as the CPI-U—increased 0.1 percent in November, on a seasonally adjusted basis. The number was released earlier today by the Bureau of Labor statistics.
What—if anything—does that data point tell us about the broader economy?
Earlier today, I spoke with Dr. Robert Shapiro to help us put that number into context, and to provide a broader economic perspective.
Dr. Shapiro was Under Secretary of Commerce for Economic Affairs during the Clinton administration, and the principal architect of President Clinton's 1992 economic program.
"What we know from this number is what we knew without this number: Namely, the recovery is abnormally slow, unusually fragile, companies can't raise prices in that environment. Demand is not strong enough to support higher prices," Shapiro said.
John Kinnucan, the man who refused to wear a wire in an ongoing insider trading probe , just received a subpoena from the SEC.
If China is no longer the U.S. government's largest creditor who is?
You guessed it: The Fed.
(Against the backdrop of QE2, this probably isn't terribly surprising.)
Tyler Durden at ZeroHedge has crunched the numbers from today's release of TIC data (Treasury International Capital)—and some interesting facts have emerged.
First, the U.S. Federal Reserve holds a total of $996 Billion of U.S. Debt —versus the $907 billion in U.S. debt held by Mainland China.
Everyone today is obsessing over the 43-page UBS brochure setting forth an elaborate dress code.
"Dresscode UBS à l’attention des collaborateurs PKB" is the formal title of the document.
It's a very typically obsessive Swiss document, with advice on everything from how many pieces of jewelry to wear (maximum of 3 pieces for men, 7 for women) to what color underwear should be donned . There's also some weird stuff, like a ban on women wearing new shoes.
The dress code is being tested out in five branches in Switzerland but may be rolled out worldwide, according to the Wall Street Journal .
My favorite part consists of advice on how to wear a tie.
This is translated from French to English by Google Translator \(Pardon the unusual grammar\):
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.
"The financial industry has largely lost the public trust," New York Fed President William Dudley said.
Hedge funds designed to profit from choppy and down markets have mostly underwhelmed in October.
Asked if he'd want his old job back, Mohamed El-Erian tells CNBC: "No, I'm really happy with my life."