Ever since Robert Gordon made his assertion that all the low hanging technological fruit has been picked, evidence to the contrary has been piling up.
It’s worth noting, first off, that Gordon’s paper was relatively backward looking. It arrived at its conclusions by taking trends prior to 2007 and projecting them forward, largely ignoring the 2008 crisis that occurred. It also measured innovation in terms of dollar denominated growth. Read more
The Financial Industry Regulatory Authority, at the urging of the US Securities and Exchange Commission, are set to file new rules with the SEC in the coming weeks that would also bind analysts who cover bonds by some of the same rules applying to equities analysis, reports the FT. Finra published an initial proposal in April, saying it “observed increased retail investment risk in complex debt securities”. The regulatory body also found that several firms lacked adequate disclosures of fixed income conflicts, according to a report by the US Government Accountability Office, which noted Finra’s plans to recommend new rules. High quality global journalism requires investment. The final proposal is likely to suggest that analysts who write fixed-income reports that are distributed to retail investors follow the same rules as equity analysts. There are exceptions for swaps research and discussions of the creditworthiness of companies. The rules would also ask that research for institutional clients come with some additional warnings.
Turn on your spam filters. UniCredit is on fire:
The IPO research blackout on Glencore International has been lifted this Wednesday, which means the investment banks responsible for the UK’s latest IPO flop are now free to heap praise on the commodities trading house. Read more
Oh deary me.
Someone at a major European investment bank (known for its foreign exchange services) is possibly a touch red-faced right about now. Read more
The FT Alphaville inbox is getting chock-full of analysts reacting to the confirmation of Basel III’s new rules revising bank capital ratios.
So here — in due fashion — is the best of the best for our readers. Read more
How do Wall Street’s lawyers and lobbyists find the time?
Somehow, while fending off the complaints of munis burnt by derivatives, contending with proposals to overhaul the US financial system and worrying about the SEC poking around, they’ve managed to wage war on theflyonthewall.com. Read more
Hot on the heels of news that Goldman Sachs did not have a single day of trading losses in the first quarter, Bloomberg reports that seven of the investment bank’s nine “recommended top trades for 2010” have been money losers for investors. FT Alphaville notes it shows to what extent Goldman’s own proprietary book is not about position taking itself, but making money from market-making and flow volume. Read more