Happy Friday. And when I say "Happy Friday," I mean I'm happy and it's Friday, and not by coincidence.» Read More
When Capitol Hill set out to force derivatives onto exchanges, lawmakers carved out a broad exemption for so-called "end users" — non-financial companies seeking to hedge their exposure to fluctuations in currencies, commitments and interest rates. An ambiguity in the Dodd-Frank financial reforms, however, threatens to undermine the end-user exemption.
The issue is whether the U.S. Commodity Futures Trading Commission \(CFTC\) can impose margin requirements on end-users. The Senate version of financial reform specifically exempted end-users. This exemption was lost on the version that emerged from the House-Senate conference, allegedly because it was redundant to provisions that more broadly carved out end-users from the requirements that derivatives trade on exchanges and pass through clearinghouses.
Halloween may be weeks away, but analysts and research firms are already trying to answer the scary question: Will consumers spend a pretty penny this holiday season... or just a few bucks?
So far, early surveys suggest the grim reaper won't mutilate the retailers' bottom line.
Kantar Retail released its holiday shopping survey last week. The consulting firm says retailers need to use some "promo mojo" to woo shoppers this season. It expects retail sales to increase by 2.5% versus 0.5% during the same time last year. But, Kantar says the period will feel weak compared to the "relatively strong pace of retail sales growth in the first three quarters."
We were curious about how market participants would react to our idea that requiring swaps to trade through exchanges would invite dreaded high frequency traders into the market.
Both on the panels and in conversation outside of the official discussions at the wmbaa.org conference, nearly everyone agrees: that's exactly what's going to happen.
Why do nearly all hotels mistreat conference guests?
Perhaps the most interesting point made in a Goldman Sachs report out this week is contained in its second sentence: “It is axiomatic that the economic backdrop influences investing decisions but the range of client views on growth and margins is unusually broad.”
Let’s try to parse that.
You have to wonder about the ramifications of the mortgage foreclosure problems that have come to light in the last few weeks.
Last week it was widely reported that JP Morgan was suspending foreclosure on 56,000 mortgages due to improperly prepared documents.
This news comes after reports surfaced that GMAC was suspending foreclosure on an undisclosed number of mortgages a week earlier.
In the wake of two large players suspending foreclosure proceedings, doubtless other large financial institutions are now reviewing their own procedures. The probability of procedural flaws at other institutions can only be guessed at — but it certainly seems possible that other overwhelmed lenders, faced with a rising tide of foreclosure volume, may have resorted to similar procedural tactics to expedite their documentation process. Which should lead us to wonder on the foreclosure suspension front: Who’s next?
"Not as negative" is the headline comment from clsa bank analyst Mike Mayo following his meeting with Citigroup executives on Friday. Two years in the making, the meeting has sparked headlines and seems to have pushed the stock back over $4 per share. In his note published for clients today: "Citigroup-paradise list; will it be found?"... Mike is still wary as he continues to rate the shares "underperform" but, has raised the target price to $4 from $3.50.
Following are responses Mike Mayo sent in reply to questions submitted by our reporter, Mary Thompson.
So we shipped Carney off to D.C. for the SEFCON I derivatives conference hosted by the Wholesale Markets Broker's Association to get the skinny on just what those guys are up to, but we want to shake things up a bit and give our readers the chance to get in on the action as well.
Check out the conference schedule and see if there is anything/ anyone who interests you, then just shoot us an e-mail or post a comment below and Carney will do his best to get an answer to your questions/requests.
Now Carney isn't one to sit on the sidelines, so don't hold back.
What do you want to know? Anyone you want us to pull aside? Who do you want Carney to spill coffee on?
Email us at NetNet@cnbc.com
JPMorgan's chief U.S. equity strategist, Tom Lee, said that a "construction boom" seems imminent and should boost stocks.
Global investment management firm Pimco underperformed its peers last month, according to estimates by data tracker Morningstar, following internal strife at the company.
A lot of people think of it as an Old Boys Club but the truth is, Wall Street likes to hire 'em young, says former trader Raj Mahal.