Scoff if you like but bitcoin, despite its myriad defects and detractors, is getting an increasing level of focus in high finance.» Read More
Just a few weeks ago, Wall Street figured it had a friend in the Federal Reserve until at least May. Those expectations suddenly have begun to change.
Strengthening economic data, particularly concerning employment and gross domestic product, have investors concerned that the central bank will begin reducing its monthly asset-purchasing program as soon as next week.
Consequently, gold prices took a battering Thursday. The stock market has been on a steady slide lower, as well.
CNBC's Patti Domm and Jeff Cox discuss the possible further implications of Fed tapering.
Happy Thursday. Dress warm on your way out, and don't forget your morning six-pack.
In the eternal Obamacare battle in Washington, Rep. Darrell Issa is bringing out the big guns. (Townhall)
Bruce Wrobel, a prominent American investor in Africa who until recently ran Blackstone Group's Sithe Global Power unit, has died.
Blackstone and Thomas DeLeo, Sithe's chief operating officer, confirmed the news.
"We are greatly saddening by Bruce's passing. He was a true visionary, a colleague and a friend. He built the company from the ground up and will be deeply missed," DeLeo said.
Buried inside a Congressional Budget Office report this week was this nugget: when it comes to individual income taxes, the top 40 percent of wage earners in America pay 106 percent of the taxes. The bottom 40 percent...pay negative 9 percent.
You read that right. One group is paying more than 100 percent of individual income taxes, the other is paying less than zero.
It's right there in Table 3 on page 13 of the report. The numbers are based on 2010 IRS and Census Bureau figures.
(Read more: New budget deal will pass, says GOP congressman)
Happy Wednesday. Or at least it is in Washington, where something resembling governing is rumored to be taking place.
Indeed, there does appear to be a bipartisan budget deal in the works, and congressional conservatives are not happy. (Politico)
Bank of America CEO Brian Moynihan said the bank faces up to an additional $9 billion in litigation costs related to the financial crisis and mortgages beyond what it holds in reserves. The bank has $14 billion of reserves to cover rep and warranty claims for bad mortgages.
Moynihan was speaking at the Goldman Sachs Financial Services Conference in Manhattan today.
BofA has already paid $43 billion in litigation and repurchase costs related to mortgages, according to Moynihan's presentation.
Bondholders of the gun maker Remington Outdoor Company, formerly The Freedom Group, want a better deal if investors are going to cash out.
Remington Outdoor makes the Bushmaster AR-15 assault rifle that was used in last year's murder of 20 children and six adults at the Sandy Hook Elementary School in Newtown, Conn. Four days after the massacre, which took place on Dec. 14, 2012, private equity giant Cerberus said it would seek a buyer for Freedom Group, but in the last year attempts to secure a deal have failed.
Cerberus, which owns Remington Outdoor, is seeking to raise money to repay investors, as a number of them have said they want to cash out of Remington Outdoor.
With the one-year anniversary of the massacre approaching, people familiar with the situation tell CNBC institutional investors are getting anxious about getting out of the investment.
Debt holders have come back with their own proposal on how to raise the needed funds.
At the heart of the Volcker Rule is the distinction between proprietary trading and trades aimed at market-making or hedging risk.
The success of the rules, the final draft of which were just released on Tuesday morning, will depend on how effectively regulators fenced off banned prop trading from permitted market making and hedging.
Five federal agencies approved the rule Tuesday—some 1,419 days after President Barack Obama announced that the rule would be included in the Dodd-Frank financial reforms.
The basic structure of the rule, outlined in 71 pages of regulation and more than 900 pages of commentary from regulators, reflects the simplicity of the idea and the complexity of its implementation.
The simple part: Banks are banned from engaging in prop trading. The complex part: That ban is subject to several exemptions intended to allow banks to facilitate customer trading and hedge their own risks.
Let's focus on two that are central to the business of Wall Street: market making and hedging. There are also very complex exemptions for "covered funds" (such as hedge funds, private equity funds and other investment funds) run by banks, but those will be covered separately.
Deutsche Bank's bid to revive its American wealth management unit hasn't been entirely smooth.
The bank considered selling the business in late 2011 but cancelled the plans in 2012 as Anshu Jain and Jürgen Fitschen become co-chief executives last June. Deutsche Bank also combined the overall asset and wealth management units and put longtime executive Michele Faissola in charge last year as part of the restructuring.
This year, the Frankfurt-based bank has seen turnover of New York-based executives as U.S. capital continues to leave Deutsche Bank's mutual funds, which are branded DWS Investments.
The latest move involves DWS U.S. CEO Michael Woods, who recently departed, according to people familiar with the situation. Woods joined in 2009 as U.S. head of distribution, a business development role.
In an 892-page explanation of the so-called Volcker Rule, U.S. government regulators propose cracking down on a variety of bank hedging activities, including positions meant to offset a bank's overall risk.
They also proposed more detailed trading reports as well as CEO certification that large banks have complied with the rule's parameters.
John Carney is a senior editor for CNBC.com, covering Wall Street and finance and running the NetNet blog.
Jeff Cox is finance editor for CNBC.com.
Lawrence Delevingne is the ‘Big Money’ enterprise reporter for CNBC.com and NetNet.
Stephanie Landsman is one of the producers of CNBC's 5pm ET show "Fast Money."
Global strategists at Citi have found what they think are the "seven remaining value trades."
BlackRock's chief investment strategist says investors are smart to be nervous but still have to buy stocks.
Scoff if you like but bitcoin, despite its myriad detractors, is getting an increasing level of focus in high finance.