Life is about to get more difficult for the nation's big banks but possibly a whole lot easier for the small ones.» Read More
World markets are sharply lower this morning. The selloff appears to have been triggered by two principal factors: Worries about a worsening debt crisis in Europe, and North Korean shelling of a South Korean island.
Here are the raw data: (From Yahoo Finance via AP) "In Europe, the FTSE 100 index of leading British shares was down 35.77 points, or 0.6 percent at 5,645.06 while Germany's DAX fell 16.76 points, or 0.3 percent, to 6,805.29. The CAC-40 in France was 30.16 points, or 0.8 percent, lower at 3,788.73."
"Wall Street was also poised to open lower—Dow futures were down 61 points, or 0.6 percent, at 11,104 while the broader Standard & Poor's 500 futures fell 9.2 points, or 0.8 percent, at 1,188.70."
North and South Korea Fire Artillery in Anger
North Korea and South Korea have exchanged artillery fire after the North shelled a South Korean island with artillery rockets near the two countries disputed maritime border. This is an international incident of a serious magnitude, with ramifications for both the regional markets in Asia, as well as for the broader global financial markets.
The New York Times provides a timeline, as well as a context for the hair-trigger potential for escalation on the Korean Peninsula:
Are Fannie Mae and Freddie Mac, the enormous Government Sponsored Enterprises (GSEs) that purchased about three quarters of the total single-family mortgages in the United States, about to step into the repurchase litigation fray ?
If so, it might be very frightening news indeed for the lenders potentially on the hook to repurchase the securities they sold to the GSE's.
First, a little background.
From the RealtyTrac article, a primer on Fannie May and Freddie Mac:
Don’t be so sure that the European Union’s emergency aid package for Ireland will stop the spread of debt concerns to other euro zone countries. In fact, it may accelerate it.
After Greece was bailed out of its own debt troubles this year, the various European government officials all voiced confidence that the stabilization programs put in place would probably not need to be drawn down. Just the existence of the programs—the expression of the will of European government’s to stabilize the markets—would be enough to stabilize markets. Indeed, the Eurocrats insisted that the point of constructing the bailout programs was to avoid ever having to use them.
Diamondback Capital Management, one of the three firms that was raided Monday by the Federal Bureau of Investigation, says that its cooperating with the FBI's investigation .
"We received an inquiry this morning from the FBI," the hedge fund firm said in a statement that was emailed to MarketWatch . "Diamondback is voluntarily cooperating. The firm is fully operational and we, along with our team, continue to manage the portfolio and Diamondback's business for the benefit of our investors," it added.
Law student Samuel Jaffe won’t be standing in line in the wee hours of the night hoping to score a Black Friday deal.
"I'd rather be in a bathrobe at 3am ordering my discount gifts or buying gift cards than being in a stampede," says Jaffe.
A Mercator Advisory Group study finds $70.5 billion was spent on store gift cards last year versus $40 billion in 2003. Even though the amount has nearly doubled in the last six years, the growth pace has begun to stall. Purchases of gift cards were up just over two billion dollars from 2008 to 2009.
"Gift card growth over the past two years has slowed down because of the economy. People have been getting deals. So, why give cash when you can get something 50 to 60 percent off for something impressive," says Eric Beder, Brean Murray, Carret & Co. Retail Analyst.
The American media magnate and CEO of News Corp, Rupert Murdoch and Apple CEO, Steve Jobs worked secretively to create a tablet-based news outlet operating out of the 26th floor of the News Corp building.
The tablet-only news outlet called “The Daily” will contain what is being described as “highly visualized” and interactive content.
During the process of creating the project, the 27th and 25th floors were "quarantined" for purposes of secrecy.
How you get the news matters—particularly to finance professionals, not just accuracy but speed.
If you work for a bank or a hedge fund, and you need to stay on top of what's going on in the world, you probably read The Wall Street Journal. So what does the discussion of such things as news delivery models mean to you? That depends.
In an article in Saturday's New York Times, David Carr addresses just such questions.
Now that the Wall Street Journal is owned by News Corp., Rupert Murdoch is among a very short list of the most powerful men in business news:
More absurdity from the SEC this week.
The Wall Street Journal Reports they are now investigating what are known as Expert Networks. These are private consulting firms that specialize in providing information and expertise on particular industries and companies. Hedge funds and mutual funds hire them to get an investment edge.
The Journal highlights a company that is being probed by the SEC, which does “channel checks” with manufacturers of technology equipment for bigger companies. That kind of research gives insight into strength of order flow and can provide clues as to the direction of the industry. \(Often times, they are run by, or staffed with, former employees of the companies in question. Sounds similar to the revolving door of members of congress who become lobbyists.\)
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.
Forgive him, father, for he has sinned. Trader-turned-comedian Raj Mahal offers these confessions from his time on Wall Street.
Demand for Alibaba's IPO is so oversubscribed that bankers are expected to close the books to investors in a matter of days.
Returns have been mixed and some analysts say large swaths of the IPO market, especially biotechnology stocks, are frothy.