Manufacturing and corporate profits are both in recession mode, even though the rest of the U.S. economy continues to limp along.» Read More
Yesterday financial regulators proposed a set of rules intended to lower mortgage defaults by requiring banks to retain five percent of the risk when they package home loans as securities. Unfortunately, the plan relies on banks to adequately self-regulate their lending practices—something they’ve shown time and again they are not very good at.
In the witness stand yesterday, former Galleon portfolio manager Adam Smith told jurors about the world inside Raj Rajaratnam's hedge fund.
He testified that in addition to legitimate research, traders and analysts were encouraged to find out confidential numbers—concrete figures connected to revenue, or earnings, or impending deal pricings—before they were released publicly.
Barclays is considering moving its global headquarters from London to New York.
The regulatory capital requirements are higher in the U.K.
Neil Barofsky's op-ed on "Where the Bailout Went Wrong" [NYTimes]
Economic data today includes the ADP employment report and mortgage applications [CNBC.com via Reuters]
Earnings reports include Family Dollar and Mosaic Group. [CNBC.com via Reuters]
Craig Reynolds, a senior swaps trader from Goldman Sachs , has jumped ship for Bank of America .
Reynolds, a managing director at Goldman, will run U.S. rates trading for B of A, say people briefed on his job move, which was announced in an internal e-mail at his new firm on Tuesday morning.
Adam Smith began his testimony in the Raj Rajaratnam trial today.
He's the first former Galleon employee to take the stand against his old boss.
In the morning session, Smith told jurors that Galleon "used insider tips as an “edge” in a strategy to make money" when company revenue details differed from expectations on Wall Street, Bloomberg reported.
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:
Three mid-level bankers in Goldman's tech investment banking group have left to take positions at ride service company Uber.
For a big group of stocks within the S&P 500, performance trends have been either decidedly positive or negative.
We asked the "Fast Money" traders what they were thankful for this Thanksgiving. Joe Terranova said, "The next 5 minutes."