Matt Taibbi: "Is the SEC Covering Up Wall Street Crimes?" (Democracy Now! Interview) Who came up with the model for excessive pay? No, it wasn't the bankers – it was academics. Take a big step back.
Ignore those sterile debates about how Dave screwed up over Stephen Hester's pay and where this leaves Ed. Instead, ask this: which profession has done most to justify the millions handed over to the boss of RBS, his colleagues and counterparts? Old mortgages rise from the dead, haunt homeowners. How banks get away with inventing profits. Both sides of the political divide are in agreement that bailing out the UK's failed banks in 2008 (and Northern Rock in 2007) was the right decision.
Taxpayers were told that the worst of all possible worlds would have occurred had banks been allowed to fail. By bailing them out, and by encouraging them to continue to reward executives on pre-crisis pay scales and incentives, politicians prophesied that things would be fine, and management were incentivised to hope that things were fine. The cream of banking talent would remain at the helm of each bank, steadying the ship, ensuring that liquidity would flow through the national economy, which would soon be back on its feet. Both sides are wrong. Going Rogue: Share Traders More Reckless Than Psychopaths, Study Shows - SPIEGEL ONLINE - News - International.
Two weeks ago, yet another case of rogue trading shocked the financial world when UBS trader Kweku Adoboli was arrested for allegedly squandering some $2.3 billion with a risky and unauthorized investment scheme.
The 31-year-old, who had been based in London for the Swiss bank, remains in jail. The bank's chief executive Oswald Grübel, meanwhile, has resigned over the scandal -- the third major embarrassment to rattle the institution in just a few years. The situation mirrors a similar scandal at French bank Société Générale, where another young "rogue trader," Jérôme Kerviel, gambled away billions in 2007 and 2008. But why do these situations keep arising in the financial world? A la Socgen, le trader qui en disait trop.
Banques américaines : l’étau se resserre sur les fraudes. City's influence over Conservatives laid bare by research into donations. The influence of the City over the Conservatives has been laid bare by new research showing that more than half of the Tory party's donations since the general election have come from individuals and businesses working in finance.
Hedge funds, financiers and private equity firms contributed more than a quarter of all the Tories' private donations – which this year poured in at a rate equal to £1m a month – the study by the Bureau of Investigative Journalism has found. The figures show an increase in the proportion of party funds coming from the financial sector, raising fears that the City's financial influence over the Tories is on the rise as key pieces of legislation are discussed by the coalition government. They come amid growing concerns that some parts of the financial sector, described by Labour leader Ed Miliband this week as "asset strippers" or "predator financiers", are profiting from financial instability.
Big Bank Chart. Les détails de la plainte des Etats Unis contre 17 banques dont la Société Générale. Your Guide To The MASSIVE FHFA Bank Lawsuits. Here It Is: Presenting Goldman's "The World Is Ending So Let's All Profit" Report. A few days ago the WSJ made waves by disclosing that Goldman was in the process of recreating another "Abacus", by pitching to clients a global "pain trade" presentation created by Goldman's Alan Brazil, which, among others, speculated that funding needs for European banks would be far, far greater than the IMF-proposed $200 billion, and would in fact be closer to $1 trillion.
This emphasis is actually odd, because Goldman focuses as much if not more attention on the end of the Chinese bubble as it does on the end of the European ponzi. It of course also did the usual Goldman thing, which is to allow select clients to piggyback with its prop, pardon flow, desk, in recreating the same fiasco for which it already had to pay a half a billion settlement to the SEC last year. Yet to date, nobody had actually seen a public version of this report....That is, nobody, until now - presenting Goldman's top secret "State of the Markets - Long and Short Risk Strategies" Schwab sues banks for manipulating Libor rates. Eight Schwab mutual funds and related entities are the latest plaintiffs to sue a number of global banking institutions over alleged manipulation of the London interbank offered rate. In a suit filed August 23 in U.S. district court in San Francisco, the funds allege that from the beginning of 2007 through about March of this year the banks' manipulation of Libor allowed them to pay lower interest rates on short-term paper that the funds purchased from the banks as well as from other entities.
About a dozen similar suits have reportedly been filed by investment funds in recent months as global regulators have launched investigations into the alleged rate manipulation. The banks “reaped hundreds of millions, if not billions, of dollars in ill-gotten gains,” Schwab said in its claim. The Schwab suit seeks unspecified damages, which may be tripled under antitrust law. It also includes claims for racketeering and securities fraud. Bonnet d’âne pour le FMI, par Pierre Rimbert. Warren Buffet investit 5 milliards dans Bank of America. Nick Leeson. Early life Leeson was born in Watford, where he attended Parmiter's School.
After finishing school in 1985 his first job was as a clerk with a private bank, Coutts. Leeson's legacy lives on in Singapore. Ten years ago this week, the rogue trader Nick Leeson fled Singapore after realising he could no longer hide his trading losses of more than $1bn.
Leeson had already been racking up huge losses for over a year, but by the morning of 23 February 1995 the pressure had reached boiling point. In a final effort to recover the losses, the Barings trader had bet on the Nikkei index of leading Japanese shares to rise. But his gamble didn't pay off. Inside Story - Jerome Kerviel: Villain or victim?
High-Frequency Firms Triple Trades in Rout. The stock market’s fastest electronic firms boosted trading threefold during the rout that erased $2.2 trillion from U.S. equity values, stepping up strategies that profit from volatility, according to one of their biggest brokers.
The increase from Aug. 1 to Aug. 10 over their 2011 average surpassed the 80 percent rise in U.S. equity volume, showing that high-frequency traders made up more of the market during the plunge, Gary Wedbush, executive vice president and head of capital markets at Wedbush Securities, said in a telephone interview. Wedbush is the largest broker supplying bids and offers on the Nasdaq Stock Market, according to exchange data. Federal Reserve Directors: A Study of Corporate and Banking Influence. Staff Report,Committee on Banking,Currency and Housing, House of Representatives, 94th Congress, 2nd Session, August 1976. The World's Biggest Central Bank Has Private Shareholders. By Washington’s Blog As I've pointed out for years, the Bank for International Settlements (BIS) is owned by the world's central banks, which are in turn owned by the big banks.
See this and this. It turns out there may be a very interesting wrinkle to private ownership issue. 11 La double arnaque. Les banques détournent l’argent du livret A. Quand les cours boursiers sont ouvertement manipulés. Pendant la crise, une banque US sauvée par l'argent de la drogue. La finance, facteur d'inégalités. Campaign via social media networks blocks Dutch bankers' bonuses. Britain has a rival when it comes to bashing bankers.
After a furious row over pay packages at Amsterdam-based ING in which thousands of customers threatened to make mass withdrawals, the Netherlands is now vying for the title of Europe's most bonus-hating country. A growing Dutch political storm could end with a blanket ban on bonuses to financiers who work for institutions bailed out by the taxpayer. ING customers mobilised on Twitter and other social networks to protest at bonuses paid to bosses at the bank, one of the biggest in the country. Too Big To Fail. Do We Need Big Banks? Yves here. I normally let VoxEU articles stand on their own, but this topic, of whether the bank PR that bigger banks are essential stands up to scrutiny, is near and dear to my heart. Note that the authors point to a 1990s study that finds that a $25 billion in assets bank was the optimal size. There were a fair number of studies done then of bank size versus efficiency. I’m a bit surprised that this is the one that is most often cited, since it also came up with the biggest size threshold at which a negative cost curve kicked in (meaning the bank became more costly to run).
Ted Kaufman's Friday Hearing Explains Everything That Is Broken With The US Financial System. On Friday, free and efficient market champion Ted Kaufman, previously known for his stern crusade to rid the world of the HFT scourge, and all other market irregularities which unfortunately will stay with us until the next major market crash (and until the disbanding of the SEC following the terminal realization of its corrupt and utter worthlessness), held a hearing on the impact of the TARP on financial stability, no longer in his former position as a senator, but as Chairman of the Congressional TARP oversight panel.
Witness included Simon Johnson, Joseph Stiglitz, Allan Meltzer, William Nelson (Deputy Director of Monetary Affairs, Federal Reserve), Damon Silvers (AFL-CIO Associate General Counsel), and others. In typical Kaufman fashion, this no-nonsense hearing was one of the most informative and expository of all Wall Street evils to ever take place on the Hill. Which of course is why it received almost no coverage in the media.
Et si on fermait la Bourse..., par Frédéric Lordon. Frédéric Lordon : «il faut fermer la Bourse!» Observatoire des inégalités. Spéculation. Regulation & taxation. Goldman Now 3 Out Of 5 In World Monetary Domination: Goldmanite To Replace Andrew Sentance At Bank Of England. Le pouvoir de Wall Street. François Pérol, ex-conseiller de Sarkozy, pilote du lobby bancaire.
A Secretive Banking Elite Rules Trading in Derivatives. This Goldman Partner Told Her Subordinates To Package And Hide The Crap They Couldn't Sell In CDOs. The Rising Power of Financial Blog Zero Hedge - Money 2009. Here Comes Executive Order 6102 For The QE Generation: Dutch Central Bank Orders Pension Fund To Sell Its Gold. Why Isn't Wall Street in Jail? 24 Mars 2006 : M3 n’est plus publié par la Réserve fédérale US. UK's £80 Billion Pension Blunder? Primary dealer. Discontinuance of M3. Livret A: 30 milliards pour les banques, qui en redemandent. Garantie des dépôts bancaires. Fonds de garantie des dépôts. Les banques britanniques sauvegardent leurs bonus en promettant de prêter davantage. Banques : des comptes courants qui polluent plus que les 4×4 » Article » OWNI, Digital Journalism.
Les crédits carbone: nouveau joujou toxique de la finance » Article » OWNI, Digital Journalism. Fausses notes : Le blog de Stéphane Montabert.