A market priced for perfection will start to wilt when investors realize things aren't particularly perfect.» Read More
New data appears to support the theory that quantitative easing is working.
Fed Vice Chair Janet Yellen delivered a speech this weekend where she presented new data from a working paper drafted by the Federal Reserve Bank of San Francisco.
"Is the program actually proving effective? My short answer is yes," she said.
John McDermott, writing for the Financial Times blog Alphaville , excerpts and analyzes Yellen's source material.
Former Rep. Paul Kanjorski may have been a victim of the November electoral “shellacking” handed out to him and his fellow Democrats, but in his mind he took one big prize down with him: JPMorgan Chase CEO Jamie Dimon.
Kanjorski, a 13-term Democrat and senior Finance Committee member from northeastern Pennsylvania, bragged in a recent interview with local media that he took on the omnipotent Dimon and won.
The bank stress tests are back and you'll sure be hearing the phrase "Too Big To Fail" uttered over and over again.
The purpose of this test is to allow the 19 big banks to raise their dividends or repurchase stock. In order to get the approval they must submit their new capital plans to the Federal Reserve by this Friday.
It will be a big banking week with concerns about Portugal and on Friday, JP Morgan is set to report is earnings. I decided to speak with Christopher Whalen, Senior Vice President and Managing Director of Institutional Risk Analytics.
It was no surprise to me when the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling found the management of BP and two of its contactors, Transocean and Halliburton, at fault for their missteps, which played an integral part to the deaths of 11 rig workers and the worst offshore oil spill in U.S. history.
Leaders are defined by the choices they make and how they react in moments of crisis. Clearly, in this instance, the management of these companies looked at their bottom line and were blinded by greed and stupidity and did not do their due diligence in assessing and analyzing risk.
Their foolish, short-sighted decisions have left a void in the 11 families who lost their loved ones and local economies that base their livelihood on the environment struggling.
I decided to have a discussion on leadership with Sydney Finkelstein, Steven Roth Professor of Management at the Tuck School of Business at Dartmouth College.
On Friday, Federal Reserve Chairman Ben Bernanke dismissed the possibility that the central bank would intervene in the municipal credit markets.
In testimony before the Senate Budget Committee Bernanke said: "We have no expectation or intention to get involved in state and local finance." He later said that states "should not expect loans from the Fed."
The comes according to a story in Friday's Wall Street Journal.
According to the Journal, the rationale for the policy of nonintervention is the following:
Credit Suisse announced this morning that more of its bankers will be paid using deferred bonuses—essentially paying bonuses in stock rather than cash.
Prior to two years ago, deferred bonuses were paid only to bankers earning more than $125,000 in bonus compensation; that threshold was then lowered to 50,000 Swiss francs- or a little over $50,000 U.S. Now, 35 to 70 percent of bonuses will be paid in deferred compensation- compared to 15 to 60 percent from earlier years.
New Stress Tests for U.S. Banks [Financial times] US Financial institutions will face another round of stress tests. The tests come amid calls for banks to begin returning profits to investors. "The exercise, mirroring the tests of May 2009 when the sector was reeling from the crisis, comes as investors have been pressing banks to return part of their surging profits. The calls have gone unanswered, contributing to the low valuation of many bank stocks, because after injecting billions of dollars to recapitalise the sector, regulators have been wary of sanctioning capital returns."
ECB Purchases Support Portuguese Bonds As Bailout Pressure Mounts [Reuters] "The European Central Bank threw Portugal a temporary lifeline on Monday by buying up its bonds, traders said, as market and peer pressure mounted for Lisbon to seek an international bailout soon. A senior euro zone source told Reuters on Sunday that Germany, France and other euro zone countries were pushing Portugal to seek an EU-IMF assistance program, following Greece and Ireland, in a bid to prevent contagion spreading to much larger Spain, the fourth biggest economy in the euro area. The interest rate premium on Portuguese sovereign debt fell on Monday after rising sharply late last week as traders said the ECB intervened to buy government bonds on the secondary market."
Get up—it's a busy day. Here's what you've missed while you were sleeping and what you need to know to carpe this Manic Monday:
Self-absorbed behavior may be good for your career on Wall Street.
A study jointly performed by professors from the London Business School and Harvard Business School purports to show that 'Luxury' makes people behave in more self-centered ways.
Apparently, our great institutions of higher learning have just caught on: Spoiled people sometimes behave badly.
There's no way to overstate the importance of today's decision by the Supreme Judicial Court of Massachusetts to void the seizure of two homes by Wells Fargo and US Bancorp.
Ray Dalio's fund slumped in August and some investors blame the strategy of such funds for the volatility that slammed stocks and commodities.
For all the talk about the 250,000 jobs a month the economy is creating, workers' real wages are going backward.
Volatility could probably last anywhere from three to four months, Brian Jacobsen of Wells Fargo said.