The date for liftoff will matter tremendously, particularly if the central bank decides to move in a month that's likely to be a highly volatile one.» Read More
One of the more controversial provisions of the new mortgage risk retention rules proposed by financial regulators today is that they don’t allow banks to correct weaknesses in mortgage pools by purchasing credit protection.
Before the financial crisis , banks regularly wrapped mortgage-backed securities with insurance in order to get a higher credit rating. The idea was that the insurance diminished the possible investor losses on the securities, since the insurance company would have to pay if the underlying mortgages defaulted.
This afternoon, former Galleon trader Adam Smith will take the stand in the Raj Rajaratnam insider trading trial.
He plead guilty to insider trading earlier this year, and is one of the government's star witnesses.
"I knew what I was doing was wrong," Smith told the court in January . "I am forever remorseful about this terrible mistake."
In their complaint against Smith, the SEC said:
The new risk retention rules proposed by regulators today are far more stringent than major banks had hoped they would be.
The turmoil in Peru may not exactly match up to what’s happening in Libya, Japan or some of the other world’s hotspots, but traders are carefully watching political upheaval in the metal-producing South American nation.
The giant $20 billion bridge loan JPMorgan Chase made to finance AT&T's acquisition of T-Mobile USA may be a leading indicator that a new credit bubble is forming.
Moody's is warning that the loan might encourage other banks to take on too much risk in pursuit of underwriting fees, in a repeat of the mad rush to make loans we saw in the second half of 2007, according to the Financial Times .
London's Man Group performed an nifty feat of media management today.
The Financial Times is reporting that the Man Group, the worlds second-largest hedge fund manager by assets under management, lost more than $2 billion over in a single month as a result of the crisis in Japan. That's not exactly the kind of thing investors like to read in headlines.
The latest chapter in the NFL lockout has Tom Brady along with nine other players filing their final brief in support of their claim ahead of the April 6 injunction hearing.
The class representatives claim in the brief that by barring the players from off season workouts and delaying the free agency period, the owners are inflicting "irreparable harm" on them.
I caught back up with Susan Tose Spencer, former Philadelphia Eagles' vice president, legal counsel and acting GM in 1984. Spencer was at the negotiation table during the strike of 1982 on the latest developments.
Private exchange wants to challenge NYSE, Nasdaq [CNBC.com via reuters]
Economic data today includes Case-Shiller Home Price Index and consumer confidence report [CNBC.com via AP]
A top AIG executive’s testimony to the financial crisis panel reveals a profound lack of understanding of the mortgages derivatives business that helped cripple the insurance giant.
Andrew Forster headed up the London office of AIG Financial Products \(AIGFP\)—the group that sold credit protection on mortgage-backed securities. His group—sometimes called “ground zero of the financial crisis”—agreed with Goldman Sachs to provide credit protection on a mark-to-market basis for various mortgage securities.
A market priced for perfection will start to wilt when investors realize things aren't particularly perfect.
We have what traders call "degrossing," where participants are simply taking down overall exposure a bit.
Argentina's central bank on Tuesday ordered HSBC Argentina to name a new president and vice president within 24 hours.