Posts from Thursday Mar 14 2013

Excerpts from the Senate’s Whale report

Tomorrow will be a difficult day for the witnesses called before the Senate Permanent Subcommittee on Investigations.

We haven’t made our way through all 300+ pages of the report, but we’ve searched around and come across some excerpt-worthy items. And we’ll have plenty more coverage tomorrow, when we host a special edition of US Markets Live starting at 9:25am EST. Read more

The Closer

Close but no cigar for the S&P 500. The index remains three points below its all-time closing high of 1565, having gained 0.5 per cent on Thursday amid another round of improved jobless claims data, and energy stocks rallying on natural gas prices (Wall Street Journal).

Average weekly new jobless claims have now fallen to their lowest level in to five years (Financial Times, Reuters). Read more

Senate to Jamie: J’accuse!


This same strategy, [Andrew Feldstein of BlueMountain Capital] argues, was used by Jamie Dimon, chief executive of JPMorgan Chase, when he volunteered details of failings in risk management that lost the bank more than $6bn last year betting on credit derivatives. Read more

The annual CCAR results clown show

To summarise:

1) Fed objected to their capital plans: Ally Financial and BB&TRead more

Bank of England glasnost?

Remember the Bank of England audits? Launched in May last year. Covered banking rescues, the really super top-secret hush-hush banking rescues, and fan-charting.

The bank’s official response to them is out. Read more

When stress and spreads part company

William Porter at Credit Suisse has been mulling the market’s muted reaction to the Italian elections. Increased stress is no longer finding its way into widening spreads, thanks to the Draghi “put”.

This credit strategist is concerned. A dampened signaling mechanism increases the risk of something going badly wrong — a market crash, even. Read more

Unlike the rest of the world’s central bankers, athletics aren’t Kuroda’s forte

He struggled as a young bureaucrat on a climb with officials and journalists up a 1,500-meter (4,900-foot) mountain in Nagano Prefecture, to the west of Tokyo, according to Utsumi, now president of Japan Credit Rating Agency Ltd. Kuroda “got exhausted and said he’d never do it again,” he said. “He’s not the sporty type.”

Metaphors aside we can ignore that but the rest of Bloomberg’s profile of the man set to take over at the Bank of Japan is worth a read. After all Kuroda has to convince the Japanese that Abenomics is for real now that much of the easy lifting has already been done. Read more

Markets Live: Thursday, 14th March, 2013

Live markets commentary from 

Insolvency Service in the red, but it’s a good thing! Sort of. Maybe. Or no. Actually no.

Adding to the list after doctors who smoke, psychologists with serious family problems, and engineers who can’t figure out how to work the lights: an organisation that handles insolvencies in the UK that wouldn’t be able to stay afloat were it not for £89m of “rescue cash” between 2008 and 2012.

Go on, have a giggle before we get to the serious part… Read more

The (early) Lunch Wrap

Meanwhile at Harvard Business School || An argument about excess reserves || Xi Jinping, China’s new president || Also, there’s a new pope || Tim Cook has to testify in ebook case || Blackberry gets order for 1m Z10s || Obama has words for China on cyber espionage || CFTC probes gold pricing || JPM-MF Global accord approved Read more

Further reading

From Google Reader* on Thursday,

– Mathbabe goes finance myth-busting.

Cyprus and the politics of contagion fear.

– The JPMorgan rap sheet, continuedRead more

The 6am Cut London

Asian stocks mixed || Qatar in talks on £10bn UK infrastructure || CFTC investigating gold pricing || New UK regulator warns on bonus cap costs || Xi Jinping becomes China’s president || Diet lower house approves BoJ nominees || Australian job numbers beat expectations Read more