San Francisco Chronicle (September 28)
“Score one for public shaming. Following widespread outrage… Wells Fargo CEO John Stumpf has said he’ll forfeit his outstanding stock awards of about $41 million.” That’s not enough. He should resign. “The public is worn out by Wall Street’s bad behavior — and it’s also tired of watching low-level employees be scapegoated while top executives get off scot-free.”
Tags: Bad behavior, CEO, Forfeit, Outrage, Public shaming, Resign, Scapegoats, Stock awards, Stumpf, Wall Street, Wells Fargo
USA Today (July 14)
“Raising the minimum wage can lead to higher corporate earnings,” writes Bill Gross, the founder of PIMCO. “Main Street is Wall Street’s best friend…. It is time to let common sense as opposed to the race for short-term corporate profits guide our economic future.”
Tags: Bill Gross, Common sense, Earnings, Economic future, Main Street, Minimum wage, PIMCO, Short-term corporate profits, Wall Street
Los Angeles Times (October 28)
“Policymakers are clear about their bond-buying goal, but the Street isn’t listening.” Current Federal Reserve Chairman Ben S. Bernanke stated publicly that quantitative easing would continue until unemployment falls to 6.5%. “If we generate 200,000 new jobs every month, tapering starts in November 2016. If we see an average of only 148,000 new jobs each month, we won’t ever see Fed tapering…. Tapering is still a long way off.”
Tags: Bernanke, Bond-buying, Fed, Jobs, Policymakers, Quantitative easing, Tapering, Unemployment, Wall Street
The Economist (May 11, 2013)
Following the darkest days of the financial crisis, more than a few European bankers and leaders were caught gloating. It looked like the big Wall Street investment banks had been beaten. “Almost five years on it is Europe’s banks that are on their knees and Wall Street that is resurgent.” But this comeback may be a nightmare in disguise. “Indeed, it is American taxpayers and investors who should worry about the dominance of a few Wall Street firms. They bear the main risk of future bail-outs.”
Tags: Bail-outs, Europe, Investment banks, Investors, Taxpayers, U.S., Wall Street
New York Times (February 14)
“The mega-merger is back.” Big deals were out for five years. “Wall Street deal makers and chief executives, brought low by the global financial crisis, lacked the confidence to strike the audacious multibillion-dollar acquisitions that had defined previous market booms.” In 2013, the cycle changed with the announced takeover of Heinz and the proposed merger of US Airways and American Airlines. “Merger activity has suddenly roared back to life.”
Tags: American Airlines, Heinz, M&A, Market cycle, US Airways, Wall Street
Wall Street Journal (December 22)
“How is it that a derivatives trading platform younger than Justin Bieber is about to acquire the New York Stock Exchange, which traces its Wall Street lineage to 1792? Thursday’s announcement that Intercontinental Exchange (ICE) will buy NYSE Euronext for about $8 billion is in part the story of a tech-savvy upstart that quickly grew to eclipse established giants.”
Tags: Acquisition, Derivatives, Ice, NYSE, Technology, Wall Street
Securities Technology Monitor (August 6)
High frequency trading “can wreak havoc in the global financial marketplace by amplifying moves on the up- and down-sides.” The “Knightmare on Wall Street” focused attention on this issue when a software glitch at Knight Capital caused almost 40 NYSE-listed stocks to move more than 10% in less than 60 minutes. “The problem with the rising popularity of High-Frequency Trading is that it may be distorting global financial markets significantly, increasingly destabilising those markets and causing the rise of systemic risk.”
High frequency trading “can wreak havoc in the global financial marketplace by amplifying moves on the up- and down-sides.” The “Knightmare on Wall Street” focused attention on this issue when a software glitch at Knight Capital caused almost 40 NYSE-listed stocks to move more than 10% in less than 60 minutes. “The problem with the rising popularity of High-Frequency Trading is that it may be distorting global financial markets significantly, increasingly destabilising those markets and causing the rise of systemic risk.”
Forbes (August 6)
“Call it the best disaster and recovery Wall Street has seen in a long time. In less than a week, Knight Capital screwed up royally to the point of near failure and then managed to save itself with the help of outside investors…. If a financial institution is going to mess up then this is the way to do it—without hurting clients and without getting taxpayers involved.”
“Call it the best disaster and recovery Wall Street has seen in a long time. In less than a week, Knight Capital screwed up royally to the point of near failure and then managed to save itself with the help of outside investors…. If a financial institution is going to mess up then this is the way to do it—without hurting clients and without getting taxpayers involved.”
Tags: Clients, Investors, Knight Capital, Taxpayers, Wall Street
Wall Street Journal (October 3)
Hundreds of protestors were arrested for blocking traffic on the Brooklyn Bridge as “the anti-Wall Street protest in Lower Manhattan entered its third week.” The protest has spawned similar protests in cities including Chicago and Los Angeles. Most of the protestors complaints are directed at “corporations that they say are too powerful and often unethical,” with firms that received taxpayer bailouts while still awarding bonuses singled out for extra scorn.
Hundreds of protestors were arrested for blocking traffic on the Brooklyn Bridge as “the anti-Wall Street protest in Lower Manhattan entered its third week.” The protest has spawned similar protests in cities including Chicago and Los Angeles. Most of the protestors complaints are directed at “corporations that they say are too powerful and often unethical,” with firms that received taxpayer bailouts while still awarding bonuses singled out for extra scorn.
Tags: Brooklyn Bridge, Chicago, LA, New York, Protest, U.S., Wall Street
Financial Times (July 20)
Dodd-Frank was supposed to be the biggest regulatory overhaul since the Great Depression. One year later, Dodd-Frank’s not living up to its billing. “Plenty of economists, officials and congressional aides think …the reforms have not shaken up Wall Street enough.” Of the 400 required rules, only 55 have been finalized and of 87 required studies, only 32 have been completed. Limited staff have been slowing the process, but so are concerns that the regulations are unneeded and risk slowing a still weak economy. Some are saying that it will take another major crisis to create momentum for real reform.
Tags: Crisis, Dodd-Frank, Economy, Regulation, U.S., Wall Street
