Terrorism

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Comment, analysis and other offerings from Thursday’s FT, John Gapper: The price of Wall Street’s black boxJPMorgan Chase this week became the second Wall Street bank after Goldman Sachs to face a large fine and a stiff warning over its sales of mortgage-backed bonds in the last days of the housing bubble in spring 2007, writes the FT columnist. Others are to come, perhaps including Merrill Lynch, Deutsche Bank and Citigroup. It is no coincidence that the Wall Street banks have lobbied with such energy against efforts to force trading of more derivatives on to exchanges and through clearing houses. They do not want the black box of fixed income and derivatives trading, which has provided so much of their profits for so long, to be exposed to plain view.John Reid: Our salt risks draining into cyberspaceThe news was dominated on Wednesday by reports of the arrest of a suspected British teenage computer hacker, in connection with a range of security breaches including attacks on the website of the CIA and the UK’s Serious Organised Crime Agency, writes Reid, a former British cabinet minister. We can expect many more such events as our security agencies struggle to address the challenges of cyberspace. In a matter of days we have seen a huge data theft from the International Monetary Fund, reports that the Pentagon is reclassifying cyberattacks as “acts of war”, and Liang Guanglie, China’s defence minister, saying his country and the US must work together to deal with the cyber “problem.”

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