FT markets round-up:“US equity markets closed fractionally higher after trading in negative territory most of the day, following a two-day closure and recorded their first monthly decline since May. As volumes rose after the first few hours of trading, volatility returned to markets, sending the CBOE Vix index, dubbed Wall Street’s “fear gauge”, 4 per cent higher to 18.5.Modest opening gains on the benchmark S&P 500 index fizzled out after the first hour and stocks traded lower most of the day. However, late activity brought the index fractionally up to 1,412.16. Still, the index fell 2 per cent over the month. The Dow Jones Industrial Average closed 0.1 per cent lower at 13,096.54 and lost 2.5 per cent over the month.” (Financial Times)
“JPMorgan Chase, the bank that lost at least $5.8bn through a massive credit derivatives position created by a trader nicknamed the “London Whale”, has filed a lawsuit against his boss,” reports the FT. “The bank issued a claim in the High Court in London last week against Javier Martin-Artajo, court records show. Mr Martin-Artajo supervised Bruno Iksil, the trader who led the team that was allegedly responsible for the losses, and who was known by the monikers “Voldemort” and the “whale” for his outsize position.” (Financial Times)
Barclays is under investigation by the US Justice Department and Securities Exchange Commission for “potentially violating anticorruption laws during its effort to raise money from Middle Eastern investors in the early days of the financial crisis,” writes the WSJ. (Wall Street Journal)
“The magnitude of Greece’s fiscal challenge was painted in sharp relief yesterday as Athens unveiled new budget projections exceeding the worst-case scenarios envisioned by international lenders when they agreed an €174bn rescue eight months ago,” reported the FT. “Instead of Greece’s debt peaking at 167 per cent of economic output next year, as predicted in the March bailout agreement, it will hit 189 per cent and climb to 192 per cent in 2014, according to projections presented to the Greek parliament.” (Financial Times)
FURTHER FURTHER READING
- Excellent video on the fiscal cliff from the WSJ’s David Wessel.
- Why an airline that travelers love is failing.
- How hard did Morgan Stanley try to lose money on the Facebook IPO?
- Heidi Moore on journalists and the Comfortably Smug saga.
- Further, further further reading.