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  Wednesday, 8 Sep 2010 | 7:55 AM ET

Basel, Basel, Basel!

Posted By: John Carney

New Global Bank Rules Could Require Bigger Cushions (Wall Street Journal)

The Basel Committee appears poised to demand larger reserves than expected, including a requirement that common equity equal 4.5% to 5% of assets, with an additional counter-cyclical equity cushion that could bring those levels up as high as 7%.

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  Tuesday, 7 Sep 2010 | 4:55 PM ET

Are Hedge Funds Behind Chuck Schumer's and Max Baucus's War Against Chinese Currency Manipulation?

Posted By: John Carney

Why are Democratic senators Chuck Schumer of New York and Max Baucus of Montana pressuring the Commerce Department to take action against China for currency manipulation? Officially, the Senators are concerned with the plight of U.S. manufacturers.

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  Tuesday, 7 Sep 2010 | 3:48 PM ET

Float Shrink a Good Stocks Sign

Posted By: Jeff Cox

The recent spate of M&A, as well as share buybacks and such, have provided another in a series of mildly bullish signs for stocks.

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  Tuesday, 7 Sep 2010 | 2:45 PM ET

Can The Market Handle $56 Billion in I.P.O's?

Posted By: Cadie Thompson

A record number of companies are seeking to file for an I.P.O. to raise a sum of more than $56 billion in cash, but is the market in any condition to handle the influx of companies seeking to go public?

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  Tuesday, 7 Sep 2010 | 12:40 PM ET

Michael Burry Is Buying Gold And Agricultural Land

Posted By: John Carney

Not surprisingly, former Scion Capital head Michael Burry is not exactly bullish on the US equity markets.

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  Tuesday, 7 Sep 2010 | 11:24 AM ET

The Tea Party Should Worry About Basel III

Posted By: John Carney

Last week we pointed out that the Basel committee's changes to the definition of regulatory capital that result in the inclusion of Fannie Mae and Freddie Mac obligations threaten to saddle us with a permanent government guarantee of those failed mortgage giants.

CNBC

Our concern was mostly with the financial effects of the permanent guarantee. We think the government guarantee stifles market processes in a way that encourages risk taking by Fannie and Freddie and blinds them to market signals that would indicate when to become more cautious. And we think the dominance of Fannie and Freddie is stifling innovation in housing finance. Everyone keeps doing conforming mortgages, rather than innovating, because that's the only game in town.

Over at Seeking Alpha, Gary A. points out that even those who do not totally condemn the guarantees of Fannie and Freddie should be worried about this development out of Basel . The problem: it takes away the option of the US government to decide whether or not the guarantees are a good idea. It's an attack on American sovereignty.

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  Tuesday, 7 Sep 2010 | 10:24 AM ET

Basel Committee Seeks 9% Tier 1 Capital

Posted By: John Carney

Despite the return of sovereign debt fears arising in Europe this morning, there's some good news from across the Atlantic.

Switzerland
Cosmo Condina | The Image Bank | Getty Images
Switzerland

The Basel committee's latest draft on capital requirements will require banks to hold 9% Tier 1 capital, a huge increase over the 4% regulators previously required, according to a report out of the German weekly Die Ziet.

This will no doubt be bad news, at least in the short-term, for the shares of banks globally. Tier 1 capital is expensive for banks and raising capital requirements by that much will require banks to withhold dividends and issue new shares, diluting existing shareholders.

But over the long haul, this should result in better capitalized banks and a sounder financial system. This, in turn, would likely decrease the risk discount equity buyers put on banking stocks, lowering the required rate of return and raising P/E ratios.

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  Tuesday, 7 Sep 2010 | 9:37 AM ET

Wall Street Psychic: Next Six Months Will Be "Turbulent"

Posted By: John Carney

"The next six months are going to be really turbulent. People need to proceed with caution," Professional psychic Mary T. Browne tells The Deal .

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  Tuesday, 7 Sep 2010 | 9:00 AM ET

New York Times Unwittingly Uncovers Anti-Trust Conspiracy

Posted By: John Carney

Saturday's New York Times had an almost perfect piece of weekend business journalism detailing the practice of a family run knife-sharpener business.

Tom Grill | Ionica | Getty Images

There aren't many of these fellows left, the NYT's Robin Shulman says there are just 100 knife sharpeners in North America, so this is a rare look inside an otherwise closed society and business.

And what do we find? The knife-sharpeners largely come from the same area of Northern Italy. They still sharpen knives much the way their fathers and grandfathers did, although technology has sped up the practice. Even more importantly, restaurants now have duplicate sets of knives, which allows the sharpening to take place off site in a shop. Formerly, the sharpening was done curbside, in a truck.

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  Tuesday, 7 Sep 2010 | 7:57 AM ET

Bob Diamond To Head Barclays

Posted By: John Carney

Goldman Still Expects A Further $1 Trillion In Quantitative Easing (FT Alphaville)

Chief Goldman Sach economist Jan Hatzius says the recovery of late 2009-early 2010 was a temporary "firm patch" in the economy and now we're in for an anemic recovery, at best. There's also a "sizable risk" that we return to a recession. As a result, the Fed will pour another $1 billion in QE into the economy, probably through Treasury purchases.

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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."

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