Maintaining zero interest rates is creating a scenario in which containing risks "becomes virtually impossible," according to an analysis.» Read More
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.
This afternoon, former Galleon trader Adam Smith, is expected to testify in the Raj Rajaratnam insider trading trial. He's already pleaded guilty to insider trading.
And the defense has already made attempts to diminish the damage his testimony could do their case.
Libyan rebels in Benghazi say they have formed their own central bank.
The rebel group known as the Transitional National Council released a statement last week announcing that they have designated the Central Bank of Benghazi as a monetary authority competent in monetary policies in Libya, and that they have appointed a governor to the Central Bank of Libya, with a temporary headquarters in Benghazi, according to Bloomberg.
All that cash piling up on corporate America’s balance sheet could end up hurting an economic recovery and further gains in the stock market.
At 5.96 percent, the ratio of cash to total company assets is nearing a 45-year peak, according to the Federal Reserve and Credit Suisse . Such a high total has advantages for sure—the ability to do deals and to return money to shareholders to name just two—but it also has drawbacks.
With Ireland's bank stress test results coming out on March 31st, the announcement of a possible European Central Bank liquidity chess move has the markets bracing for bad news.
The ECB is looking to expand its operational reach in Ireland by replacing a short-term funding plan known as the Exceptional Liquidity Assistance \(ELA\) with a new €60 billion medium-term “liquidity” loan plan.
Bank regulators are set to hold an open meeting on Tuesday to discuss a controversial risk-retention rule for mortgages—and its even more controversial carve-out.
Under the Dodd-Frank financial reforms, banks are required to retain at least five percent of the risk on mortgages they securitize.
The idea was that banks would be more careful about making loans and structuring mortgage-backed securities if they were required to keep a part of the credit risk. From the start, that has had banks griping that this will choke off the mortgage market and raise borrowing costs of home-buyers.
Anne Hathaway and Warren Buffett have recently been linked in the media—though not romantically, thank god.
No, this linkage is purely statistical.
At least four Goldman Sachs executives flew into Japan last week to speak with nervous ex-pat employees about radiation fears, according to a person familiar with the situation. They also conveyed another message: don't leave Japan and don't leave Tokyo.
Market conditions and stabilizing economic data could lead the Federal Reserve to raise interest rates in October, David Lebovitz said.
Stocks sank and investors ran to Treasurys after a disappointing jobs report pushed off expectations for a Fed rate hike into 2016.
The economy created 142,000 jobs in September, a number that whiffed on expectations and could cool expectations that the Fed will start raising rates.