Obama vows to veto sidesteps to automatic cuts
By Wallace Witkowski, MarketWatch
President Barack Obama vowed late Monday to veto any measure designed to override automatic budget cuts caused by the failure of a so-called congressional supercommittee to come up with a deficit-cutting deal. Obama said many Democrats were willing to make concessions to cut entitlement spending but chided Republicans for not listening to "reason" with regards to raising revenue. Earlier in the day, the supercommittee announced that it had failed to make any progress to agree on a deal to shave a $1.2 trillion deficit over 10 years.
http://jlne.ws/rxyHIz
Congress’s Deficit ‘Bomb’: Scary or Not?
By Naftali Bendavid, WSJ.com
In the end, the bomb just wasn’t scary enough.Congress’s deficit-cutting supercommittee, which is expected to formally admit defeat later this afternoon, was designed with a bomb that would go off if the panel failed to come up with $1.2 trillion in deficit cuts. That bomb was the threat of $1.2 trillion in automatic cuts, much of that coming from the military.
http://jlne.ws/rqee8y
S&P And Moody's Affirm U.S. Rating After Super Committee Fails
http://t.co/enkIOrRL
No deal for US 'super-committee'
http://t.co/bYfIhB79
Ex-Madoff trader pleads guilty to fraud
http://t.co/RYF2YSeI
France urges freeze on Iranian oil, central bank assets
http://jlne.ws/siMLoB
QE bar is high: Fed's Lockhart
http://jlne.ws/rqp6xk
Are big banks really changing their ways?
http://jlne.ws/vUDuG9
Moody’s warns on France’s triple A status
http://jlne.ws/vOF0pv
Wells Fargo, B of A and Other Big Banks Flee Reverse Mortgages, Leaving Industry Void
http://t.co/qigb1Y6R
U.S. Could Be Facing Another Year of Uncertainty
http://t.co/vb98jrPA
U.S. Sued for $25 Billion Over AIG Takeover
http://t.co/1SuLwy84
San Francisco Fed: Forward Guidance Useful Monetary Policy Tool Even With Zero Fed Funds Rate
http://jlne.ws/v0t8vN
Next up for debt debate? The 2012 election
http://jlne.ws/vKBUe4
Trustee: MF Global Missing Twice As Much Money : NPR
http://t.co/lz2ffGJ6
SIGTARP Shuts Down Online Mortgage Modification Scams Advertised On YAHOO! And Bing http://jlne.ws/uFKZ5j
Soros: The ECB must step in to save the eurozone
http://jlne.ws/s5ZRbm
The Inflationary Consequences of ECB Bond Buying
http://jlne.ws/voADD2
ECB bond buying 2010 vs. 2011
http://t.co/9A2uEktN
Senin, 21 November 2011
November 17, 2011: Dudley: Fed Options Include Bond Buying
November 17, 2011
JLN Interest Rates - http://www.jlninterestrates.com
Conversation Starter
ISDA: The Electronic Execution Mandate
In a podcast, ISDA Chief Executive Officer Conrad Voldstad and Executive Vice Chairman Robert Pickel discuss the Commodity Futures Trading Commission's (CFTC) Electronic Execution Mandate (EEM) and ISDA’s new discussion paper that assesses the mandate’s costs and benefits. Also, in a new post "Small-User Benefit Amounts To Small Change," ISDA focuses on one of the key issues in the discussion paper – the alleged benefits of the EEM to small users.
See the ISDA postings here.
Factor Advisors Says Large-Cap U.S. Stocks And T-Bonds Moving In Opposite Directions - Most Since Early 2003
According to asset managment firm Factor Advisors, from a longer-term perspective, the correlation between large-cap U.S. stocks and T-Bonds is at a historical low -- the 30-month correlation between the S&P 500 and the T-Bond hit its lowest point in over three decades on Oct. 31, 2011. Despite its lower credit rating, T-Bonds have been used for protection even though they are perceived by rating agencies to be “riskier” than in the past.
NFA Signs Agreement with Tullett Prebon to Provide Regulatory Services to Tullett Prebon's Swap Execution Facility
November 17, 2011, Chicago and New York - National Futures Association (NFA) and Tullett Prebon today announced that they have entered into an agreement that paves the way for NFA to perform regulatory services for Tullett Prebon's swap execution facility (SEF). The Agreement establishes a preliminary framework for the exchange of information and the development of technology standards that will enable Tullett Prebon and NFA to develop, test and launch automated trade practice and surveillance systems and also to develop procedures and processes necessary for Tullett Prebon to fulfill its SEF self-regulatory obligations. Upon the issuance of the Commodity Futures Trading Commission's (CFTC) final SEF rules, NFA and Tullett Prebon anticipate that they will enter into a formal Regulatory Services Agreement.
Under the Dodd-Frank Act and the rules and regulations currently being written by the CFTC, SEFs will have surveillance and other regulatory responsibilities. The CFTC has proposed to allow SEFs to contract with a registered futures association, such as NFA, or another registered entity for regulatory services.
"This is a significant step forward as we engage in new regulatory activity on behalf of SEFs. For over ten years, NFA has been successfully performing trade practice and market surveillance functions on behalf of futures exchanges," said NFA President Daniel J. Roth. "We look forward to working with Tullett Prebon as we enhance our surveillance systems to assist Tullett Prebon and other SEFs in meeting their regulatory responsibilities."
"We are enthusiastic about this working relationship with the NFA, a highly regarded independent regulatory organization, as we prepare to become a Swap Execution Facility," said Shawn Bernardo, Senior Managing Director, Tullett Prebon. "We are confident the NFA will be able to provide Tullett with the experience and resources necessary to assist us in satisfying our regulatory obligations as a SEF."
See the NFA's press release here.
-- Christine Nielsen
Lead Stories
Dudley: Fed Options Include Bond Buying
By Steve Matthews and Caroline Salas Gage, Bloomberg
Federal Reserve Bank of New York President William C. Dudley said there’s more the Fed could do to boost the economy, such as providing clearer guidance on how long interest rates will stay low or resuming asset purchases.
http://jlne.ws/seCbl0
Fed’s Pianalto: European Slowdown Could Trim 0.5% From U.S. Growth
By Doug Cameron, WSJ.com
A U.S. Federal Reserve official said Thursday that she sees signs of inflationary pressure moderating, and upgraded her growth forecasts for the next two years.
http://jlne.ws/sTmvps
Federal reserve reps: Prepare for slow, painful recovery
Eureka Times-Standard
Representatives from Federal Reserve Bank of San Francisco gave an economic forecast Wednesday night that confirmed what the nation has known for quite some time -- the public can expect a slow and painful economic recovery.
http://jlne.ws/vKwB5q
Federal Reserve official predicts tough years for housing
The Canton Repository
A Federal Reserve Bank official gave a sobering report to Stark County Builders on Wednesday - expect five more years in the housing slump.
http://jlne.ws/vhTkX1
Fed economist sees long recovery slog
Reuters via Yahoo! News
St. LOUIS (Reuters) - The U.S. economic recovery will likely be a long slog over several years and there is not a whole lot the Federal Reserve can do to speed the process, according to a top economist at the central bank. "Something's happened in U.S. labor markets that we can't overcome," St. Louis Federal Reserve Bank Research Director Christopher Waller told Reuters in an interview. "No ...
http://jlne.ws/sVpFS9
Federal Reserve: Farmland values in Midwest, West up 25 pct, biggest 1-year rise in 3 decades
Minneapolis-St. Paul Star Tribune
OMAHA, Neb. - The average value of farmland in some Midwestern and Western states has risen 25 percent in the past year.
http://jlne.ws/uWlOQt
NY Fed To Ramp Up Collateral Requirements on Mortgage-Backed Securities
International Business Times
The New Federal Reserve Bank said on Wednesday it will be lifting up the margin requirements on 21 primary dealers in transactions dealing with mortgage-backed securities, in order to to establish a sheild against settlement risk within its counterparties. The requirement could begin next Monday.The.
http://jlne.ws/uwaHoX
Ron Paul: Federal Reserve is Like Drug Addiction
U.S.News & World Report LP via Yahoo! News
It's no secret that Rep. Ron Paul is no fan of the Federal Reserve, but today he likened the system to drug addiction--something that feels good at the time but will end in destruction.
http://jlne.ws/slvuN3
City says Occupy camp at Federal Reserve must remove tents by Thursday evening
The San Francisco Examiner
On the heels of more than 100 protesters being arrested inside a Bank of America branch, the encampment at Federal Reserve must remove tents by Thursday evening, according to the Department of Public Works. Mohammed Nuru, head of the Department of Public Works, said Wednesday that he'd met with campers in front of the Federal Reserve building, at 101 Market Street, and asked them to move their ...
http://jlne.ws/tltWA0
Federal Housing Administration Reserves Drop to $2.6 Billion, Bailout Possible
International Business Times
The Federal Housing Admistration said in its annual financial report that its cash reserves had fallen to $2.6 billion, down from $4.7, intensifying the likelihood of a taxpayer bailout.
http://jlne.ws/sA7c3k
Tiny Rule Change at Heart of MF Global Failure: William D. Cohan
BusinessWeek
Laurie R. Ferber has quite a resume. She is currently the general counsel of MF Global Holdings Ltd., the New York-based futures and commodities brokerage that filed for bankruptcy on Oct. 31, listing some $40 billion in liabilities.
http://jlne.ws/ru5eNC
ICE Clear U.S. Completes Transfer of MF Global Positions
Press Release
IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced that ICE Clear U.S. has completed the transfer or closure of all MF Global customer positions executed on ICE Futures U.S. and held at the clearing house. The substantial majority of customer positions were transferred to alternative clearing participants at the request of customers, and the balance of open positions were closed by the clearing house. ICE Clear U.S. remained fully collateralized throughout the process.
http://jlne.ws/tSJEKf
Judge OKs $520 million payout to MF Global customers
Reuters
The trustee liquidating MF Global Holdings Ltd's (MFGLQ.PK) broker-dealer unit won court permission to distribute $520 million of cash, providing relief to customers whose accounts have been frozen since the futures brokerage went bankrupt.
http://jlne.ws/sX7pUu
Inside MF Global's Bankruptcy Hearing
New York Times.com
A proposal to make cash distributions to MF Global customers was the focus of a hearing on Thursday at the federal bankruptcy court in Manhattan. DealBook provided live coverage of the proceedings.
http://jlne.ws/tZRm0n
MF Global Subpoenas Said to Be Issued by U.S. Attorney
By Patricia Hurtado, Bloomberg Businessweek
U.S. Attorney Patrick Fitzgerald in Chicago issued subpoenas in a probe of MF Global Holdings Ltd., the broker-dealer parent that filed for bankruptcy Oct. 31, a person familiar with the matter said.
http://jlne.ws/rBD7Wm
**CN: See the MarketsWiki bio on Chicago attorney Patrick Fitzgerald. He was a part of the president's Corporate Fraud Task Force.
CME Group Statement on MF Global Segregation Violation - Nov 17, 2011
Press Release
In response to inaccuracies reported yesterday, CME Group confirmed today that it followed CFTC requirements and CME Rules and procedures in reviewing MF Global's segregated funds statements and coordinating that review with the CFTC. CME was advised in the early hours of Monday, October 31 that there was an actual shortfall in the segregated funds account and was told the CFTC was advised concurrently. Shortly thereafter, CME Group discussed the shortfall in a conference call with the CFTC and other regulators. CME Group is confident that it complied with all its obligations as a DSRO pursuant to the Commodity Exchange Act.
http://jlne.ws/tXIvVM
Harris Bank subpoenaed, workers sue over MF Global
Reuters via Yahoo! News
(Reuters) - Fallout from MF Global Holdings Ltd's bankruptcy intensified as a U.S. regulator subpoenaed a bank that held some of its customers' money, while some of the 1,066 workers fired from the futures brokerage last week filed three lawsuits over their sudden dismissals.
http://jlne.ws/sG1WgN
Who has the better central bank, Europe or the U.S.?
Washington Post
Who has the better central bank, Europe or the United States? It's not exactly water-cooler conversation. But in April, when European Central Bank president Jean-Claude Trichet announced he would hike interest rates even as the euro zone was sputtering - in essence, opting to choke off economic growth to avert an uptick in inflation - the comparisons with Ben Bernanke quickly flared. Read full ...
http://jlne.ws/rI7kFI
Central-Bank Gold Purchases Soar
BY RHIANNON HOYLE, WSJ.com
Total central-bank gold purchases in the third quarter were more than double the level reported just one quarter earlier, and came in almost seven times higher than the year-earlier period as countries continued to diversify their official reserves, according to World Gold Council data Thursday that surprised gold traders and analysts.
http://jlne.ws/twzwTH
The euro crisis: The ECB could make things easier
The Economist
MATTHEW YGLESIAS has a short post on Italy and its nominal GDP growth. He uses a new interactive tool at Reuters to play around with the figures for nominal GDP growth, debt-to-GDP ratio and the interest rate. What he finds is that with 4.5% NGDP growth and a very high 7.5% interest rate, Italy needs a 3.6% primary surplus, which it is projected to have in 2012 (although I have my doubts), to maintain a stable debt-to-GDP ratio.
http://jlne.ws/s8TugT
Irish PM says ECB is the ultimate backstop for eurozone
IFR
The ECB is the only credible institution that could sustain eurozone bonds, Irish Prime Minister Enda Kenny told Reuters. He says solving the debt crisis will mean pushing existing arrangements to the limit.
http://jlne.ws/uWtm70
Banks Bracing for 2012 Euro Financial Apocalypse
By Shanthi Bharatwaj, The Street
As the European debt crisis threatens to spiral out of control, banks are scrambling behind the scenes to protect their balance sheets and hedge their exposure to ride-out an increasingly scary 2012.
http://jlne.ws/tqVWdm
**CN: The Street manages to work "financial apocalypse" into one more headline before the year ends.
U.S. Banks Face Contagion Risk From Europe Debt, Fitch Says
BusinessWeek
U.S. banks face a "serious risk" that their creditworthiness will deteriorate if Europe's debt crisis deepens and spreads beyond the five most-troubled nations, Fitch Ratings said.
http://jlne.ws/veXZOp
SIGTARP SHUTS DOWN 85 ONLINE MORTGAGE MODIFICATION SCAMS ADVERTISED ON GOOGLE
The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) today announced that it has shut down 85 alleged online mortgage modification scams that prey on vulnerable homeowners through Web banners and other Web advertisements. SIGTARP investigates mortgage modification schemes in which companies charge struggling homeowners a fee in exchange for false promises of lowering the homeowner’s mortgage through TARP’s housing program known as the Home Affordable Modification Program (HAMP). Google, in cooperation with an ongoing criminal SIGTARP investigation of these scams, has suspended advertising relationships with more than 500 Internet advertisers and agents associated with the 85 alleged online mortgage fraud schemes and related deceptive advertising.
http://jlne.ws/tCNEy8
United States: MBA Delinquency Rates
Mustafa Akcay, Moody's
The aggregate mortgage delinquency rate declined from 8.44% to 7.99% in the third quarter, according to the Mortgage Bankers Association. This is the first quarterly decline in the mortgage delinquency rate in 2011. Thirty-day, 60-day and 90+ day delinquency rates declined in the third quarter. The inventory of houses in foreclosure remained unchanged, whereas foreclosure starts edged up slightly from 0.96% to 1.08%. Overall this is a positive consumer credit report creating some optimism for mortgage credit conditions.
http://jlne.ws/tqWgVH
Trading Continuity Services Joins Telx Financial Business Exchange
Press Release
Telx(R) today announced that Trading Continuity Services (TCS) has joined the Financial Business Exchange (FBX). As a colocation and InterConnection customer in Telx's strategically-located data center in downtown Chicago, TCS, a leader in the Data Protection and Disaster Recovery/Business Continuity industry, can now offer Telx's financial markets customers secure, low latency access to its highly redundant, fully managed Data Protection solutions. The Telx FBX delivers secure, reliable colocation infrastructure in prime locations, enabling ultra-low latency access to an industry-leading ecosystem of market participants such as trading venues, market data providers, buy-side and sell-side firms and network service providers.
http://jlne.ws/sl80b5
U.S. Debt Tops $15 Trillion
ABC News
Don't look now, members of the "supercommittee" battling the national debt, but the amount the U.S. owes is expected top the $15 trillion mark sometime today. That's a lot of George Washingtons, as you can see here live at USdebtclock.org. With a week until the...
http://jlne.ws/s30imq
House Democrats ask for tougher Volcker rule
Reuters via Yahoo! News
WASHINGTON (Reuters) - A group of House Democrats are asking regulators to start over with a proposed ban on proprietary trading by banks, arguing the current proposal has too many loopholes. In a letter to Federal Reserve Chairman Ben Bernanke released on Wednesday, a group of 17 House Democrats said the draft rule unveiled last month should be scrapped and replaced with a more simple approach ...
http://jlne.ws/ubCETj
Newt Gingrich on Defensive Over Freddie Mac Fees
New York Times
Newt Gingrich received $1.6 million to $1.8 million from Freddie Mac for providing strategic advice, Bloomberg News reported.
http://jlne.ws/vYsJQC
Post-Madoff, a Greater Awareness of Ponzi Schemes
New York Times
Federal authorities are opening more investigations of possible fraud, which they attribute to greater awareness among consumers and a weak economy.
http://jlne.ws/uWjbvT
Warren Buffet laments that Europe has no Bernanke or Paulson
Los Angeles Times
Warren Buffett: Warren Buffett is concerned that Europe doesn't have strong financial officials such as Federal Reserve Chairman Ben S. Bernanke and former Treasury Secretary Henry M. Paulson.
http://jlne.ws/s6RYqy
Foreign holdings of US Treasury debt rose in September with China boosting its holdings
Washington Post
WASHINGTON - China bought more U.S. Treasury debt in September and total foreign holdings rose for a second straight month. The Treasury Department says total foreign holdings of Treasury debt increased 1.9 percent to $4.66 trillion. China, the largest foreign holder, bought 1 percent more to bring its total holdings to $1.15 trillion. China cut its purchases 3.1 percent in August. Read full ...
http://jlne.ws/tgO02R
U.S. Treasury Reports Direct Deposit for Social Security on Upswing in the West
PR Newswire
WASHINGTON, Nov. 15, 2011 /PRNewswire/ -- Just months after the U.S. Department of the Treasury announced it is retiring paper checks for federal benefit payments and going all-electronic by March 1, 2013, the use of direct deposit is on the upswing - including in the Western region...
http://jlne.ws/vO1Ljx
Fewer Treasury Bills Means 0% Rates to Persist With Deficits
BusinessWeek
The market for U.S. Treasury bills is poised to shrink the most since early 2010, creating a shortage in the debt and helping keep government borrowing costs near record lows.
http://jlne.ws/urpyKS
Unloved Treasury Notes Becoming New Favorite in Fed's Twist
BusinessWeek
The U.S. Federal Reserve is finding no shortage of demand for the short-term bonds it's selling to focus on longer-maturity debt, a sign that the strength in the economy seen in October may prove fleeting.
http://jlne.ws/vBKKNo
U.S. Panel Approves Measure to Suspend Fannie, Freddie Bonuses
BusinessWeek
A U.S. House committee approved a suspension of bonus packages for executives at Fannie Mae and Freddie Mac, the two mortgage firms currently under the control of the U.S. government.
http://jlne.ws/rrGbmi
IMF Strategy Chief to Head European Unit After Borges Quits
BusinessWeek
The head of the International Monetary Fund's European department was replaced by a veteran staffer after quitting less than a year into the job as the European debt crisis worsens.
http://jlne.ws/vRtToB
Events
Fourteenth Annual International Banking Conference
November 29 - December 1, 2011
Federal Reserve Bank of Chicago holds 14th International Banking Conference
http://jlne.ws/nTDrKO
7th Annual FIA Asia Derivatives Conference
November 29 - December 1, 2011
FIA looks at the futures and options industry in Asia
http://jlne.ws/vkOpsA
Economic News
Federal Reserve Bank Manufacturers See Slow Pace of Growth
Press Release
Responses to November's Business Outlook Survey suggest that regional manufacturing is expanding, but at a slow pace. The survey's broad indicators for activity, shipments, and new orders recorded positive readings this month, but all declined slightly from their October readings. Employment conditions improved, as indicated by increases in the indexes for employment and average workweek. The broadest indicator of future activity showed marked improvement, and firms were notably more optimistic about future employment.
http://jlne.ws/vi0Rqc
Consumer Prices in U.S. Unexpectedly Fell 0.1% in October
BusinessWeek
The cost of living in the U.S. unexpectedly fell in October for the first time in four months, a sign that inflationary pressures may be starting to recede.
http://jlne.ws/uTjUZN
U.S. Wholesale Prices Drop 0.3%; Core Rate Unchanged in October
BusinessWeek
Prices paid to U.S. wholesalers fell in October by the most in four months as the cost of energy and automobiles decreased, pointing to waning inflationary pressures.
http://jlne.ws/sypSdN
Jobless Claims at 7-Month Low, Building Permits Jump
International Business Times
New U.S. claims for jobless benefits hit a seven-month low last week, while permits for future home construction rebounded strongly last month, bolstering views the economy was gaining traction.
http://jlne.ws/sEvp1i
Exchanges, Clearing Houses & MTFs
ELX to Narrow Ticks to Quarter Intervals in 10-Year Treasury Contract
Marketwire Finance Press Releases via Yahoo! Finance
NEW YORK, NY-- - ELX Futures, L.P. , a leading electronic futures exchange, today announced plans to reduce the minimum tick size in the outright months of its 10-year U.S. Treasury note futures contract ...
http://jlne.ws/vDVNvw
ICE Reaches $25 Trillion Milestone in Global CDS Cleared
citybizlist Atlanta
ATLANTA -- IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exch...
http://jlne.ws/tmEEzf
Firms & Banks
Fidessa continues global expansion with new Latin American base in São Paulo
Press Release
Fidessa group plc (LSE: FDSA), provider of high-performance trading, investment management and information solutions for the world’s financial community, has today announced the expansion of its Latin American operations with a new headquarters in the region, new staff and data centers that provide resilient, redundant hosting. This move continues Fidessa's global growth as the preferred supplier to both the buy-side and sell-side, and builds on the recent expansion of its Asia Pacific business with the opening of its Australian office in Sydney last month.
http://jlne.ws/ts9xX3
AIG Needs Better Results to Speed Treasury Exit, Miller Says
BusinessWeek
American International Group Inc. needs improving results to lift its stock price and prompt the U.S. Treasury Department to sell a majority stake in the bailed- out insurer, said Chairman Steve Miller.
http://jlne.ws/sWNG5v
UniCredit Trades as Junk With $51 Billion Due: Corporate Finance
Bloomberg
Bonds of UniCredit SpA (UCG) , the Italian bank that posted a surprise 10.6 billion-euro ($14.3 billion) third-quarter loss this week, are trading as junk as the lender prepares to refinance $51 billion of debt coming due next year.
http://jlne.ws/rUnbl2
Citigroup to cut jobs, total could top 3,000
Reuters via Yahoo! News
(Reuters) - Citigroup In c may cut "slightly more" than 3,000 jobs, becoming the latest U.S. bank to eliminate positions, a source familiar with the matter said. The cuts would include jobs eliminated as a result of re-engineering and divestitures. The details are still being worked out. "As part of our ongoing efforts to control expenses, we are making targeted headcount reductions in certain ...
http://jlne.ws/uWbmmV
Citigroup's Buiter Says Europe Must Stop Default Now: Tom Keene
BusinessWeek
Europe has as little as days or weeks to act to avoid a default by a euro-region country, Citigroup Inc. Chief Economist Willem Buiter said today.
http://jlne.ws/v4XiYQ
Regulators
CFTC's O'Malia Suggests Agency Should Reconsider Some Dodd-Frank Rules In Light Of MF Global
Kitco.com
(Kitco News) - The Commodity Futures Trading Commission should reconsider some of the final and proposed rulemakings under the Dodd-Frank act in light of the bankruptcy of MF Global, said one CFTC official Wednesday.
http://jlne.ws/sbcJsB
CFTC's Gensler: Client Fund Segregation 'Heart' Of Derivatives Regulation
By Jacob Bunge and Jamila Trindle Of DOW JONES NEWSWIRES
CHICAGO (Dow Jones) -- The model of walling off customer money from that of big derivatives brokers remains central to U.S. regulation of the market, Commodity Futures Trading Commission Chairman Gary Gensler said Wednesday, despite charges that the practice failed customers of MF Global Holdings Ltd. (MFGLQ).
http://jlne.ws/v5pwGz
Fed's Fisher Says Regulators Should Break Up 'Behemoth' Banks
BusinessWeek
Federal Reserve Bank of Dallas President Richard Fisher said regulators should break up so- called too-big-to-fail financial institutions to curtail the risk they pose to financial stability.
http://jlne.ws/sUiTBK
Lacker Says Fed's Credit Policies Have Sparked 'Understandable' Antagonism
Bloomberg
Federal Reserve Bank of Richmond President Jeffrey Lacker said the Fed's current purchases of mortgage bonds and financing of private sector assets during the credit crisis has fueled some of the antagonism aimed today at the central bank.
http://jlne.ws/ustEkH
Fed's Rosengren says rate policy not impotent
Market Watch
WASHINGTON (MarketWatch) - The Federal Reserve is not out of bullets even though market rates are already low, said Eric Rosengren, the president of the Boston Federal Reserve Bank on Wednesday. "The common misconception is that rates are already low so further monetary policy actions will have no impact on the economy. In fact, statistical analysis suggests the opposite," Rosengren said in a ...
http://jlne.ws/uJFAlQ
Fed's Evans Calls for More Stimulus to Address Joblessness
BusinessWeek
Federal Reserve Bank of Chicago President Charles Evans said he is calling for "increasing amounts of policy accommodation" to reduce a 9 percent unemployment rate that's far above the Fed's objectives.
http://jlne.ws/uixePX
Fed's Yellen Says 'Forceful Action' Needed on Europe Crisis
BusinessWeek
Federal Reserve Vice Chairman Janet Yellen said recent financial market turmoil underscores the need for "forceful action" by European leaders to curb the continent's debt crisis.
http://jlne.ws/vTGZh5
Bullard Says Large Scale Asset Purchases 'Must Be Employed Carefully'
Bloomberg
Federal Reserve Bank of St. Louis President James Bullard urged policy makers to think twice before deciding on further large-scale purchases of securities because they could bring the threat of higher inflation.
http://jlne.ws/rq3DWS
Fed's Williams Says Weak Growth Outlook May Require Further Asset Buying
Bloomberg
Federal Reserve Bank of San Francisco President John C. Williams said the central bank may need to embark on additional asset purchases in the face of stubborn unemployment, moderate growth and undesirably low inflation.
http://jlne.ws/rHQamE
Fed's Evans Seeks To 'Take New Chances' on Monetary Policy
Wall Street Journal Blogs
The slow-to-recover U.S. economy requires the Fed to "stretch the boundaries and take new chances" on monetary policy, a key Fed official said.
http://jlne.ws/sCU3hL
Regulator says MF Global case illustrates need for better protection of customer funds
Washington Post
WASHINGTON - A federal regulator is calling for tighter oversight of the commodity futures industry in response to hundreds of millions of dollars in customer accounts that went missing after MF Global collapsed. Scott O'Malia, a Republican member of the Commodity Futures Trading Commission, wants the regulator to go beyond the review it has ordered for all U.S. trading firms. He wants firms to ...
http://jlne.ws/uhnCHv
Bernanke: Fed Looks For Opportunities To Reduce Regulatory Burden
Nasdaq
http://jlne.ws/vhbcYO
Global News
Spanish Bond Auction Sees Interest Rate Near 7 Percent
The Associated Press
Fear, that contagious emotion, spread from country to country in Europe on Thursday as panicky investors worried the euro currency union could be heading toward an ugly breakup.
http://jlne.ws/uh4MGV
Spanish and French Bond Sales Weigh on Global Markets
International Herald Tribune
Spanish bond yields approached 7 percent and French bonds commanded a record premium over German, signs of heightened investor worry about the European debt crisis.
http://jlne.ws/rCYq7F
Italy's new premier aims for economic growth
Associated Press
As riot police clashed with protesters in the streets, Italy's new premier unveiled his economic plan, vowing to spur growth yet spread out the sacrifices Italians must accept to save their country from bankruptcy and the eurozone from a disastrous collapse.
http://jlne.ws/tnZaZi
France sells debt but borrowing costs rise: report
Market Watch
LONDON (MarketWatch) -- France's government sold 6.98 billion euros ($9.4 billion) of BTAN notes of various maturities at an auction on Thursday, Reuters reported. The nation's cost of borrowing over two and four years rose by half a percentage point compared to previous auctions, according to the Reuters report. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as ...
http://jlne.ws/v4Qk2H
S.Africa monetary policy to focus on inflation: Marcus
Reuters via Yahoo! News
JOHANNESBURG (Reuters) - South Africa's monetary policy will maintain its focus on hitting a 3-6 percent inflation target over the medium term but will remain sensitive to the domestic economic situation, Reserve Bank Governor Gill Marcus said on Tuesday. Marcus told a meeting of the Swiss Chamber of Southern Africa that the developments in the exchange rate -- which has been hit by bouts of ...
http://jlne.ws/vxWO0a
China to 'tinker' with monetary easing
AFP via Yahoo! News
China will "tinker around the edges" of monetary policy to keep its economy growing, but still-high inflation and overseas turmoil mean dramatic changes are unlikely, analysts said Thursday.
http://jlne.ws/tzM9lT
BoJ holds steady on policy, warns on Japan growth
AFP via Yahoo! News
The Bank of Japan on Wednesday left its key rate unchanged at between zero and 0.1 percent, and held steady on monetary policy despite increasing concerns over a high yen and the global economy.
http://jlne.ws/stwFuG
Sri Lanka Central Bank Governor on Economy, Policy
Bloomberg
Nov. 16 (Bloomberg) -- Ajith Nivard Cabraal, governor of the Central Bank of Sri Lanka, talks about the nation's economy and monetary policy. The central bank today kept its benchmark interest rates unchanged for a 10th straight month, seeking to support growth as the global economy falters.
http://jlne.ws/tXkoIg
Australian Economy, Central Bank Monetary Policy
Bloomberg
Nov. 15 (Bloomberg) -- Ivan Colhoun, head of Australian economics and property research at Australia & New Zealand Banking Group Ltd., talks about Australia's economy and central bank monetary policy.
http://jlne.ws/ryGgG5
RBI Chief Hiked Repo Rate Overruling Advisory Panel's View: Report
International Business Times
The Reserve Bank of India's chief Duvvuri Subbarao pushed ahead with a rate hike at the October monetary policy meeting, overruling a majority of external members of advisory panel.
http://jlne.ws/v50N2T
Disclaimer: The John Lothian, Environmental Markets, JLN Metals, JLN Managed Futures, JLN Interest Rates, JLN Options and JLN FX newsletters and blogs and MarketsWiki are products of John J. Lothian & Company, Inc. The opinions expressed in these publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers.
Futures and options trading involve risk. Past results are no indication of future performance.
Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any web site or newsletter content.
Copyright 2011 John J. Lothian & Company, Inc. All Rights Reserved.
JLN Interest Rates - http://www.jlninterestrates.com
Conversation Starter
ISDA: The Electronic Execution Mandate
In a podcast, ISDA Chief Executive Officer Conrad Voldstad and Executive Vice Chairman Robert Pickel discuss the Commodity Futures Trading Commission's (CFTC) Electronic Execution Mandate (EEM) and ISDA’s new discussion paper that assesses the mandate’s costs and benefits. Also, in a new post "Small-User Benefit Amounts To Small Change," ISDA focuses on one of the key issues in the discussion paper – the alleged benefits of the EEM to small users.
See the ISDA postings here.
Factor Advisors Says Large-Cap U.S. Stocks And T-Bonds Moving In Opposite Directions - Most Since Early 2003
According to asset managment firm Factor Advisors, from a longer-term perspective, the correlation between large-cap U.S. stocks and T-Bonds is at a historical low -- the 30-month correlation between the S&P 500 and the T-Bond hit its lowest point in over three decades on Oct. 31, 2011. Despite its lower credit rating, T-Bonds have been used for protection even though they are perceived by rating agencies to be “riskier” than in the past.
NFA Signs Agreement with Tullett Prebon to Provide Regulatory Services to Tullett Prebon's Swap Execution Facility
November 17, 2011, Chicago and New York - National Futures Association (NFA) and Tullett Prebon today announced that they have entered into an agreement that paves the way for NFA to perform regulatory services for Tullett Prebon's swap execution facility (SEF). The Agreement establishes a preliminary framework for the exchange of information and the development of technology standards that will enable Tullett Prebon and NFA to develop, test and launch automated trade practice and surveillance systems and also to develop procedures and processes necessary for Tullett Prebon to fulfill its SEF self-regulatory obligations. Upon the issuance of the Commodity Futures Trading Commission's (CFTC) final SEF rules, NFA and Tullett Prebon anticipate that they will enter into a formal Regulatory Services Agreement.
Under the Dodd-Frank Act and the rules and regulations currently being written by the CFTC, SEFs will have surveillance and other regulatory responsibilities. The CFTC has proposed to allow SEFs to contract with a registered futures association, such as NFA, or another registered entity for regulatory services.
"This is a significant step forward as we engage in new regulatory activity on behalf of SEFs. For over ten years, NFA has been successfully performing trade practice and market surveillance functions on behalf of futures exchanges," said NFA President Daniel J. Roth. "We look forward to working with Tullett Prebon as we enhance our surveillance systems to assist Tullett Prebon and other SEFs in meeting their regulatory responsibilities."
"We are enthusiastic about this working relationship with the NFA, a highly regarded independent regulatory organization, as we prepare to become a Swap Execution Facility," said Shawn Bernardo, Senior Managing Director, Tullett Prebon. "We are confident the NFA will be able to provide Tullett with the experience and resources necessary to assist us in satisfying our regulatory obligations as a SEF."
See the NFA's press release here.
-- Christine Nielsen
Lead Stories
Dudley: Fed Options Include Bond Buying
By Steve Matthews and Caroline Salas Gage, Bloomberg
Federal Reserve Bank of New York President William C. Dudley said there’s more the Fed could do to boost the economy, such as providing clearer guidance on how long interest rates will stay low or resuming asset purchases.
http://jlne.ws/seCbl0
Fed’s Pianalto: European Slowdown Could Trim 0.5% From U.S. Growth
By Doug Cameron, WSJ.com
A U.S. Federal Reserve official said Thursday that she sees signs of inflationary pressure moderating, and upgraded her growth forecasts for the next two years.
http://jlne.ws/sTmvps
Federal reserve reps: Prepare for slow, painful recovery
Eureka Times-Standard
Representatives from Federal Reserve Bank of San Francisco gave an economic forecast Wednesday night that confirmed what the nation has known for quite some time -- the public can expect a slow and painful economic recovery.
http://jlne.ws/vKwB5q
Federal Reserve official predicts tough years for housing
The Canton Repository
A Federal Reserve Bank official gave a sobering report to Stark County Builders on Wednesday - expect five more years in the housing slump.
http://jlne.ws/vhTkX1
Fed economist sees long recovery slog
Reuters via Yahoo! News
St. LOUIS (Reuters) - The U.S. economic recovery will likely be a long slog over several years and there is not a whole lot the Federal Reserve can do to speed the process, according to a top economist at the central bank. "Something's happened in U.S. labor markets that we can't overcome," St. Louis Federal Reserve Bank Research Director Christopher Waller told Reuters in an interview. "No ...
http://jlne.ws/sVpFS9
Federal Reserve: Farmland values in Midwest, West up 25 pct, biggest 1-year rise in 3 decades
Minneapolis-St. Paul Star Tribune
OMAHA, Neb. - The average value of farmland in some Midwestern and Western states has risen 25 percent in the past year.
http://jlne.ws/uWlOQt
NY Fed To Ramp Up Collateral Requirements on Mortgage-Backed Securities
International Business Times
The New Federal Reserve Bank said on Wednesday it will be lifting up the margin requirements on 21 primary dealers in transactions dealing with mortgage-backed securities, in order to to establish a sheild against settlement risk within its counterparties. The requirement could begin next Monday.The.
http://jlne.ws/uwaHoX
Ron Paul: Federal Reserve is Like Drug Addiction
U.S.News & World Report LP via Yahoo! News
It's no secret that Rep. Ron Paul is no fan of the Federal Reserve, but today he likened the system to drug addiction--something that feels good at the time but will end in destruction.
http://jlne.ws/slvuN3
City says Occupy camp at Federal Reserve must remove tents by Thursday evening
The San Francisco Examiner
On the heels of more than 100 protesters being arrested inside a Bank of America branch, the encampment at Federal Reserve must remove tents by Thursday evening, according to the Department of Public Works. Mohammed Nuru, head of the Department of Public Works, said Wednesday that he'd met with campers in front of the Federal Reserve building, at 101 Market Street, and asked them to move their ...
http://jlne.ws/tltWA0
Federal Housing Administration Reserves Drop to $2.6 Billion, Bailout Possible
International Business Times
The Federal Housing Admistration said in its annual financial report that its cash reserves had fallen to $2.6 billion, down from $4.7, intensifying the likelihood of a taxpayer bailout.
http://jlne.ws/sA7c3k
Tiny Rule Change at Heart of MF Global Failure: William D. Cohan
BusinessWeek
Laurie R. Ferber has quite a resume. She is currently the general counsel of MF Global Holdings Ltd., the New York-based futures and commodities brokerage that filed for bankruptcy on Oct. 31, listing some $40 billion in liabilities.
http://jlne.ws/ru5eNC
ICE Clear U.S. Completes Transfer of MF Global Positions
Press Release
IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced that ICE Clear U.S. has completed the transfer or closure of all MF Global customer positions executed on ICE Futures U.S. and held at the clearing house. The substantial majority of customer positions were transferred to alternative clearing participants at the request of customers, and the balance of open positions were closed by the clearing house. ICE Clear U.S. remained fully collateralized throughout the process.
http://jlne.ws/tSJEKf
Judge OKs $520 million payout to MF Global customers
Reuters
The trustee liquidating MF Global Holdings Ltd's (MFGLQ.PK) broker-dealer unit won court permission to distribute $520 million of cash, providing relief to customers whose accounts have been frozen since the futures brokerage went bankrupt.
http://jlne.ws/sX7pUu
Inside MF Global's Bankruptcy Hearing
New York Times.com
A proposal to make cash distributions to MF Global customers was the focus of a hearing on Thursday at the federal bankruptcy court in Manhattan. DealBook provided live coverage of the proceedings.
http://jlne.ws/tZRm0n
MF Global Subpoenas Said to Be Issued by U.S. Attorney
By Patricia Hurtado, Bloomberg Businessweek
U.S. Attorney Patrick Fitzgerald in Chicago issued subpoenas in a probe of MF Global Holdings Ltd., the broker-dealer parent that filed for bankruptcy Oct. 31, a person familiar with the matter said.
http://jlne.ws/rBD7Wm
**CN: See the MarketsWiki bio on Chicago attorney Patrick Fitzgerald. He was a part of the president's Corporate Fraud Task Force.
CME Group Statement on MF Global Segregation Violation - Nov 17, 2011
Press Release
In response to inaccuracies reported yesterday, CME Group confirmed today that it followed CFTC requirements and CME Rules and procedures in reviewing MF Global's segregated funds statements and coordinating that review with the CFTC. CME was advised in the early hours of Monday, October 31 that there was an actual shortfall in the segregated funds account and was told the CFTC was advised concurrently. Shortly thereafter, CME Group discussed the shortfall in a conference call with the CFTC and other regulators. CME Group is confident that it complied with all its obligations as a DSRO pursuant to the Commodity Exchange Act.
http://jlne.ws/tXIvVM
Harris Bank subpoenaed, workers sue over MF Global
Reuters via Yahoo! News
(Reuters) - Fallout from MF Global Holdings Ltd's bankruptcy intensified as a U.S. regulator subpoenaed a bank that held some of its customers' money, while some of the 1,066 workers fired from the futures brokerage last week filed three lawsuits over their sudden dismissals.
http://jlne.ws/sG1WgN
Who has the better central bank, Europe or the U.S.?
Washington Post
Who has the better central bank, Europe or the United States? It's not exactly water-cooler conversation. But in April, when European Central Bank president Jean-Claude Trichet announced he would hike interest rates even as the euro zone was sputtering - in essence, opting to choke off economic growth to avert an uptick in inflation - the comparisons with Ben Bernanke quickly flared. Read full ...
http://jlne.ws/rI7kFI
Central-Bank Gold Purchases Soar
BY RHIANNON HOYLE, WSJ.com
Total central-bank gold purchases in the third quarter were more than double the level reported just one quarter earlier, and came in almost seven times higher than the year-earlier period as countries continued to diversify their official reserves, according to World Gold Council data Thursday that surprised gold traders and analysts.
http://jlne.ws/twzwTH
The euro crisis: The ECB could make things easier
The Economist
MATTHEW YGLESIAS has a short post on Italy and its nominal GDP growth. He uses a new interactive tool at Reuters to play around with the figures for nominal GDP growth, debt-to-GDP ratio and the interest rate. What he finds is that with 4.5% NGDP growth and a very high 7.5% interest rate, Italy needs a 3.6% primary surplus, which it is projected to have in 2012 (although I have my doubts), to maintain a stable debt-to-GDP ratio.
http://jlne.ws/s8TugT
Irish PM says ECB is the ultimate backstop for eurozone
IFR
The ECB is the only credible institution that could sustain eurozone bonds, Irish Prime Minister Enda Kenny told Reuters. He says solving the debt crisis will mean pushing existing arrangements to the limit.
http://jlne.ws/uWtm70
Banks Bracing for 2012 Euro Financial Apocalypse
By Shanthi Bharatwaj, The Street
As the European debt crisis threatens to spiral out of control, banks are scrambling behind the scenes to protect their balance sheets and hedge their exposure to ride-out an increasingly scary 2012.
http://jlne.ws/tqVWdm
**CN: The Street manages to work "financial apocalypse" into one more headline before the year ends.
U.S. Banks Face Contagion Risk From Europe Debt, Fitch Says
BusinessWeek
U.S. banks face a "serious risk" that their creditworthiness will deteriorate if Europe's debt crisis deepens and spreads beyond the five most-troubled nations, Fitch Ratings said.
http://jlne.ws/veXZOp
SIGTARP SHUTS DOWN 85 ONLINE MORTGAGE MODIFICATION SCAMS ADVERTISED ON GOOGLE
The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) today announced that it has shut down 85 alleged online mortgage modification scams that prey on vulnerable homeowners through Web banners and other Web advertisements. SIGTARP investigates mortgage modification schemes in which companies charge struggling homeowners a fee in exchange for false promises of lowering the homeowner’s mortgage through TARP’s housing program known as the Home Affordable Modification Program (HAMP). Google, in cooperation with an ongoing criminal SIGTARP investigation of these scams, has suspended advertising relationships with more than 500 Internet advertisers and agents associated with the 85 alleged online mortgage fraud schemes and related deceptive advertising.
http://jlne.ws/tCNEy8
United States: MBA Delinquency Rates
Mustafa Akcay, Moody's
The aggregate mortgage delinquency rate declined from 8.44% to 7.99% in the third quarter, according to the Mortgage Bankers Association. This is the first quarterly decline in the mortgage delinquency rate in 2011. Thirty-day, 60-day and 90+ day delinquency rates declined in the third quarter. The inventory of houses in foreclosure remained unchanged, whereas foreclosure starts edged up slightly from 0.96% to 1.08%. Overall this is a positive consumer credit report creating some optimism for mortgage credit conditions.
http://jlne.ws/tqWgVH
Trading Continuity Services Joins Telx Financial Business Exchange
Press Release
Telx(R) today announced that Trading Continuity Services (TCS) has joined the Financial Business Exchange (FBX). As a colocation and InterConnection customer in Telx's strategically-located data center in downtown Chicago, TCS, a leader in the Data Protection and Disaster Recovery/Business Continuity industry, can now offer Telx's financial markets customers secure, low latency access to its highly redundant, fully managed Data Protection solutions. The Telx FBX delivers secure, reliable colocation infrastructure in prime locations, enabling ultra-low latency access to an industry-leading ecosystem of market participants such as trading venues, market data providers, buy-side and sell-side firms and network service providers.
http://jlne.ws/sl80b5
U.S. Debt Tops $15 Trillion
ABC News
Don't look now, members of the "supercommittee" battling the national debt, but the amount the U.S. owes is expected top the $15 trillion mark sometime today. That's a lot of George Washingtons, as you can see here live at USdebtclock.org. With a week until the...
http://jlne.ws/s30imq
House Democrats ask for tougher Volcker rule
Reuters via Yahoo! News
WASHINGTON (Reuters) - A group of House Democrats are asking regulators to start over with a proposed ban on proprietary trading by banks, arguing the current proposal has too many loopholes. In a letter to Federal Reserve Chairman Ben Bernanke released on Wednesday, a group of 17 House Democrats said the draft rule unveiled last month should be scrapped and replaced with a more simple approach ...
http://jlne.ws/ubCETj
Newt Gingrich on Defensive Over Freddie Mac Fees
New York Times
Newt Gingrich received $1.6 million to $1.8 million from Freddie Mac for providing strategic advice, Bloomberg News reported.
http://jlne.ws/vYsJQC
Post-Madoff, a Greater Awareness of Ponzi Schemes
New York Times
Federal authorities are opening more investigations of possible fraud, which they attribute to greater awareness among consumers and a weak economy.
http://jlne.ws/uWjbvT
Warren Buffet laments that Europe has no Bernanke or Paulson
Los Angeles Times
Warren Buffett: Warren Buffett is concerned that Europe doesn't have strong financial officials such as Federal Reserve Chairman Ben S. Bernanke and former Treasury Secretary Henry M. Paulson.
http://jlne.ws/s6RYqy
Foreign holdings of US Treasury debt rose in September with China boosting its holdings
Washington Post
WASHINGTON - China bought more U.S. Treasury debt in September and total foreign holdings rose for a second straight month. The Treasury Department says total foreign holdings of Treasury debt increased 1.9 percent to $4.66 trillion. China, the largest foreign holder, bought 1 percent more to bring its total holdings to $1.15 trillion. China cut its purchases 3.1 percent in August. Read full ...
http://jlne.ws/tgO02R
U.S. Treasury Reports Direct Deposit for Social Security on Upswing in the West
PR Newswire
WASHINGTON, Nov. 15, 2011 /PRNewswire/ -- Just months after the U.S. Department of the Treasury announced it is retiring paper checks for federal benefit payments and going all-electronic by March 1, 2013, the use of direct deposit is on the upswing - including in the Western region...
http://jlne.ws/vO1Ljx
Fewer Treasury Bills Means 0% Rates to Persist With Deficits
BusinessWeek
The market for U.S. Treasury bills is poised to shrink the most since early 2010, creating a shortage in the debt and helping keep government borrowing costs near record lows.
http://jlne.ws/urpyKS
Unloved Treasury Notes Becoming New Favorite in Fed's Twist
BusinessWeek
The U.S. Federal Reserve is finding no shortage of demand for the short-term bonds it's selling to focus on longer-maturity debt, a sign that the strength in the economy seen in October may prove fleeting.
http://jlne.ws/vBKKNo
U.S. Panel Approves Measure to Suspend Fannie, Freddie Bonuses
BusinessWeek
A U.S. House committee approved a suspension of bonus packages for executives at Fannie Mae and Freddie Mac, the two mortgage firms currently under the control of the U.S. government.
http://jlne.ws/rrGbmi
IMF Strategy Chief to Head European Unit After Borges Quits
BusinessWeek
The head of the International Monetary Fund's European department was replaced by a veteran staffer after quitting less than a year into the job as the European debt crisis worsens.
http://jlne.ws/vRtToB
Events
Fourteenth Annual International Banking Conference
November 29 - December 1, 2011
Federal Reserve Bank of Chicago holds 14th International Banking Conference
http://jlne.ws/nTDrKO
7th Annual FIA Asia Derivatives Conference
November 29 - December 1, 2011
FIA looks at the futures and options industry in Asia
http://jlne.ws/vkOpsA
Economic News
Federal Reserve Bank Manufacturers See Slow Pace of Growth
Press Release
Responses to November's Business Outlook Survey suggest that regional manufacturing is expanding, but at a slow pace. The survey's broad indicators for activity, shipments, and new orders recorded positive readings this month, but all declined slightly from their October readings. Employment conditions improved, as indicated by increases in the indexes for employment and average workweek. The broadest indicator of future activity showed marked improvement, and firms were notably more optimistic about future employment.
http://jlne.ws/vi0Rqc
Consumer Prices in U.S. Unexpectedly Fell 0.1% in October
BusinessWeek
The cost of living in the U.S. unexpectedly fell in October for the first time in four months, a sign that inflationary pressures may be starting to recede.
http://jlne.ws/uTjUZN
U.S. Wholesale Prices Drop 0.3%; Core Rate Unchanged in October
BusinessWeek
Prices paid to U.S. wholesalers fell in October by the most in four months as the cost of energy and automobiles decreased, pointing to waning inflationary pressures.
http://jlne.ws/sypSdN
Jobless Claims at 7-Month Low, Building Permits Jump
International Business Times
New U.S. claims for jobless benefits hit a seven-month low last week, while permits for future home construction rebounded strongly last month, bolstering views the economy was gaining traction.
http://jlne.ws/sEvp1i
Exchanges, Clearing Houses & MTFs
ELX to Narrow Ticks to Quarter Intervals in 10-Year Treasury Contract
Marketwire Finance Press Releases via Yahoo! Finance
NEW YORK, NY-- - ELX Futures, L.P. , a leading electronic futures exchange, today announced plans to reduce the minimum tick size in the outright months of its 10-year U.S. Treasury note futures contract ...
http://jlne.ws/vDVNvw
ICE Reaches $25 Trillion Milestone in Global CDS Cleared
citybizlist Atlanta
ATLANTA -- IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exch...
http://jlne.ws/tmEEzf
Firms & Banks
Fidessa continues global expansion with new Latin American base in São Paulo
Press Release
Fidessa group plc (LSE: FDSA), provider of high-performance trading, investment management and information solutions for the world’s financial community, has today announced the expansion of its Latin American operations with a new headquarters in the region, new staff and data centers that provide resilient, redundant hosting. This move continues Fidessa's global growth as the preferred supplier to both the buy-side and sell-side, and builds on the recent expansion of its Asia Pacific business with the opening of its Australian office in Sydney last month.
http://jlne.ws/ts9xX3
AIG Needs Better Results to Speed Treasury Exit, Miller Says
BusinessWeek
American International Group Inc. needs improving results to lift its stock price and prompt the U.S. Treasury Department to sell a majority stake in the bailed- out insurer, said Chairman Steve Miller.
http://jlne.ws/sWNG5v
UniCredit Trades as Junk With $51 Billion Due: Corporate Finance
Bloomberg
Bonds of UniCredit SpA (UCG) , the Italian bank that posted a surprise 10.6 billion-euro ($14.3 billion) third-quarter loss this week, are trading as junk as the lender prepares to refinance $51 billion of debt coming due next year.
http://jlne.ws/rUnbl2
Citigroup to cut jobs, total could top 3,000
Reuters via Yahoo! News
(Reuters) - Citigroup In c may cut "slightly more" than 3,000 jobs, becoming the latest U.S. bank to eliminate positions, a source familiar with the matter said. The cuts would include jobs eliminated as a result of re-engineering and divestitures. The details are still being worked out. "As part of our ongoing efforts to control expenses, we are making targeted headcount reductions in certain ...
http://jlne.ws/uWbmmV
Citigroup's Buiter Says Europe Must Stop Default Now: Tom Keene
BusinessWeek
Europe has as little as days or weeks to act to avoid a default by a euro-region country, Citigroup Inc. Chief Economist Willem Buiter said today.
http://jlne.ws/v4XiYQ
Regulators
CFTC's O'Malia Suggests Agency Should Reconsider Some Dodd-Frank Rules In Light Of MF Global
Kitco.com
(Kitco News) - The Commodity Futures Trading Commission should reconsider some of the final and proposed rulemakings under the Dodd-Frank act in light of the bankruptcy of MF Global, said one CFTC official Wednesday.
http://jlne.ws/sbcJsB
CFTC's Gensler: Client Fund Segregation 'Heart' Of Derivatives Regulation
By Jacob Bunge and Jamila Trindle Of DOW JONES NEWSWIRES
CHICAGO (Dow Jones) -- The model of walling off customer money from that of big derivatives brokers remains central to U.S. regulation of the market, Commodity Futures Trading Commission Chairman Gary Gensler said Wednesday, despite charges that the practice failed customers of MF Global Holdings Ltd. (MFGLQ).
http://jlne.ws/v5pwGz
Fed's Fisher Says Regulators Should Break Up 'Behemoth' Banks
BusinessWeek
Federal Reserve Bank of Dallas President Richard Fisher said regulators should break up so- called too-big-to-fail financial institutions to curtail the risk they pose to financial stability.
http://jlne.ws/sUiTBK
Lacker Says Fed's Credit Policies Have Sparked 'Understandable' Antagonism
Bloomberg
Federal Reserve Bank of Richmond President Jeffrey Lacker said the Fed's current purchases of mortgage bonds and financing of private sector assets during the credit crisis has fueled some of the antagonism aimed today at the central bank.
http://jlne.ws/ustEkH
Fed's Rosengren says rate policy not impotent
Market Watch
WASHINGTON (MarketWatch) - The Federal Reserve is not out of bullets even though market rates are already low, said Eric Rosengren, the president of the Boston Federal Reserve Bank on Wednesday. "The common misconception is that rates are already low so further monetary policy actions will have no impact on the economy. In fact, statistical analysis suggests the opposite," Rosengren said in a ...
http://jlne.ws/uJFAlQ
Fed's Evans Calls for More Stimulus to Address Joblessness
BusinessWeek
Federal Reserve Bank of Chicago President Charles Evans said he is calling for "increasing amounts of policy accommodation" to reduce a 9 percent unemployment rate that's far above the Fed's objectives.
http://jlne.ws/uixePX
Fed's Yellen Says 'Forceful Action' Needed on Europe Crisis
BusinessWeek
Federal Reserve Vice Chairman Janet Yellen said recent financial market turmoil underscores the need for "forceful action" by European leaders to curb the continent's debt crisis.
http://jlne.ws/vTGZh5
Bullard Says Large Scale Asset Purchases 'Must Be Employed Carefully'
Bloomberg
Federal Reserve Bank of St. Louis President James Bullard urged policy makers to think twice before deciding on further large-scale purchases of securities because they could bring the threat of higher inflation.
http://jlne.ws/rq3DWS
Fed's Williams Says Weak Growth Outlook May Require Further Asset Buying
Bloomberg
Federal Reserve Bank of San Francisco President John C. Williams said the central bank may need to embark on additional asset purchases in the face of stubborn unemployment, moderate growth and undesirably low inflation.
http://jlne.ws/rHQamE
Fed's Evans Seeks To 'Take New Chances' on Monetary Policy
Wall Street Journal Blogs
The slow-to-recover U.S. economy requires the Fed to "stretch the boundaries and take new chances" on monetary policy, a key Fed official said.
http://jlne.ws/sCU3hL
Regulator says MF Global case illustrates need for better protection of customer funds
Washington Post
WASHINGTON - A federal regulator is calling for tighter oversight of the commodity futures industry in response to hundreds of millions of dollars in customer accounts that went missing after MF Global collapsed. Scott O'Malia, a Republican member of the Commodity Futures Trading Commission, wants the regulator to go beyond the review it has ordered for all U.S. trading firms. He wants firms to ...
http://jlne.ws/uhnCHv
Bernanke: Fed Looks For Opportunities To Reduce Regulatory Burden
Nasdaq
http://jlne.ws/vhbcYO
Global News
Spanish Bond Auction Sees Interest Rate Near 7 Percent
The Associated Press
Fear, that contagious emotion, spread from country to country in Europe on Thursday as panicky investors worried the euro currency union could be heading toward an ugly breakup.
http://jlne.ws/uh4MGV
Spanish and French Bond Sales Weigh on Global Markets
International Herald Tribune
Spanish bond yields approached 7 percent and French bonds commanded a record premium over German, signs of heightened investor worry about the European debt crisis.
http://jlne.ws/rCYq7F
Italy's new premier aims for economic growth
Associated Press
As riot police clashed with protesters in the streets, Italy's new premier unveiled his economic plan, vowing to spur growth yet spread out the sacrifices Italians must accept to save their country from bankruptcy and the eurozone from a disastrous collapse.
http://jlne.ws/tnZaZi
France sells debt but borrowing costs rise: report
Market Watch
LONDON (MarketWatch) -- France's government sold 6.98 billion euros ($9.4 billion) of BTAN notes of various maturities at an auction on Thursday, Reuters reported. The nation's cost of borrowing over two and four years rose by half a percentage point compared to previous auctions, according to the Reuters report. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as ...
http://jlne.ws/v4Qk2H
S.Africa monetary policy to focus on inflation: Marcus
Reuters via Yahoo! News
JOHANNESBURG (Reuters) - South Africa's monetary policy will maintain its focus on hitting a 3-6 percent inflation target over the medium term but will remain sensitive to the domestic economic situation, Reserve Bank Governor Gill Marcus said on Tuesday. Marcus told a meeting of the Swiss Chamber of Southern Africa that the developments in the exchange rate -- which has been hit by bouts of ...
http://jlne.ws/vxWO0a
China to 'tinker' with monetary easing
AFP via Yahoo! News
China will "tinker around the edges" of monetary policy to keep its economy growing, but still-high inflation and overseas turmoil mean dramatic changes are unlikely, analysts said Thursday.
http://jlne.ws/tzM9lT
BoJ holds steady on policy, warns on Japan growth
AFP via Yahoo! News
The Bank of Japan on Wednesday left its key rate unchanged at between zero and 0.1 percent, and held steady on monetary policy despite increasing concerns over a high yen and the global economy.
http://jlne.ws/stwFuG
Sri Lanka Central Bank Governor on Economy, Policy
Bloomberg
Nov. 16 (Bloomberg) -- Ajith Nivard Cabraal, governor of the Central Bank of Sri Lanka, talks about the nation's economy and monetary policy. The central bank today kept its benchmark interest rates unchanged for a 10th straight month, seeking to support growth as the global economy falters.
http://jlne.ws/tXkoIg
Australian Economy, Central Bank Monetary Policy
Bloomberg
Nov. 15 (Bloomberg) -- Ivan Colhoun, head of Australian economics and property research at Australia & New Zealand Banking Group Ltd., talks about Australia's economy and central bank monetary policy.
http://jlne.ws/ryGgG5
RBI Chief Hiked Repo Rate Overruling Advisory Panel's View: Report
International Business Times
The Reserve Bank of India's chief Duvvuri Subbarao pushed ahead with a rate hike at the October monetary policy meeting, overruling a majority of external members of advisory panel.
http://jlne.ws/v50N2T
Disclaimer: The John Lothian, Environmental Markets, JLN Metals, JLN Managed Futures, JLN Interest Rates, JLN Options and JLN FX newsletters and blogs and MarketsWiki are products of John J. Lothian & Company, Inc. The opinions expressed in these publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers.
Futures and options trading involve risk. Past results are no indication of future performance.
Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any web site or newsletter content.
Copyright 2011 John J. Lothian & Company, Inc. All Rights Reserved.
Jumat, 18 November 2011
Top Interest Rate Headlines 11-18-11: Greek Bond Losses Put Role Of CDS In Doubt
Greek bond losses put role of CDS in doubt
By Gillian Tett - Financial Times
Earlier this year, Deutsche Bank quietly decided to reduce its exposure to Italian government bonds. But it did not do that by simply selling debt; instead it achieved this partly by buying protection against sovereign default with credit derivatives contracts. That duly enabled the doughty German giant to report that its exposure to Italian sovereign bonds had dropped an impressive 88 per cent during the first half of the year – at least, when measured on a net basis – from E8bn to less than E1bn.
http://jlne.ws/rIs5FB
Judge Approves Transfer Of 22,000+ MF Global Accounts To New Firms
By Joseph Checkler Of DOW JONES DAILY BANKRUPTCY REVIEW
NEW YORK (Dow Jones)--A judge approved on Thursday the transfer of more than 22,000 MF Global Holdings Ltd. (MFGLQ) brokerage accounts to new dealers, granting an emergency request from the trustee unwinding the company's brokerage.
http://jlne.ws/vrXZkD
MF Global Is Said to Have Used Customer Cash Improperly
New York Times
MF Global borrowed against customer funds without putting up collateral, a serious violation of Wall Street rules, said people briefed on an investigation into the firm's collapse.
http://jlne.ws/vJiYkY
CFTC’s Chilton supports voice broking
By Jeremy Grant in London - Financial Times
Bart Chilton, a commissioner at the Commodity Futures Trading Commission, has thrown his weight behind preserving voice broking as a way of executing derivatives deals within the definition of how “swap execution facilities” (SEFs) are to function. Mr Chilton’s stance places the commissioner, a Democrat, at odds with Gary Gensler, the CFTC chairman, who wants to ensure that prices on SEFs be quoted and disseminated to a wide variety of market participants in the interest of greater transparency.
http://jlne.ws/vOVtql
Crisis Ensnares Central Bank in Desperate Bid to Save Euro
BY BRIAN BLACKSTONE AND MATTHEW KARNITSCHNIG - WSJ
FRANKFURT—At a mid-July meeting of the European Central Bank's governing board, the bank's longtime president, Jean-Claude Trichet, was summoned from a conference room to take an urgent call from Berlin. It was Angela Merkel. The German chancellor and French President Nicolas Sarkozy were about to meet in Berlin to deal with Greece's debt crisis and were at odds over what losses investors might be forced to take. They hoped the ECB could broker a compromise.
http://jlne.ws/swE4QY
Draghi turns tables on eurozone leaders
By Ralph Atkins in Frankfurt - Financial Times
Mario Draghi has turned the tables on eurozone leaders by demanding they implement urgently measures to combat the escalating debt crisis, and warned of massive economic and social costs if instead the European Central Bank’s credibility was put at stake.
http://jlne.ws/t2nPGR
CME May Face ‘Liability’ In MF Global Disclosure, Goldman Says
By Matthew Leising and Silla Brush - Bloomberg
Nov. 17 (Bloomberg) -- CME Group Inc., the world’s largest futures exchange that’s fallen 8.5 percent this week, may face liability related to concerns it misled regulators over what it knew about MF Global Holdings Ltd., according to Goldman Sachs Group Inc.
http://jlne.ws/su2iN0
Banks in Italy Find an Unusual Liquidity Lifeline
By MARK SCOTT - NY Times
LONDON — The London Stock Exchange is becoming the lender of last resort for many banks in Italy as concerns over the country’s debt levels squeeze liquidity out of the Italian financial market.
http://jlne.ws/tKdZDO
Swiss Central Bank Forces MegaBanks UBS and Credit Suisse to Shrink and De-Risk
Naked Capitalism
The Financial Times gives prominent play to a story that I suspect will go largely unnoticed in the US, that of the way that the Switzerland's bank regulator, the Swiss National Bank, has forced its two biggest banks, UBS and Credit Suisse, to shed risk in a serious way and shrink.
http://jlne.ws/tuDAqo
Banks Face On-Site Capital, Liquidity Checks by Basel Group
BusinessWeek
Global regulators will carry out on- site inspections of banks to ensure they have enough capital and liquidity under rules designed to prevent another financial crisis.
http://jlne.ws/sUR2gK
UBS to take axe to investment banking
By Haig Simonian in Zurich and Megan Murphy in New York - Financial Times
UBS has outlined long-awaited plans to shrink its business dramatically and refocus on its core wealth management operations, making deep cuts to its investment bank.
http://jlne.ws/v1zZ3Z
Sovereign CDS Concerns Shift To Counterparty Risk
By Katy Burne Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Investors and policy makers scrambling to determine how banks may be hurt by losses on risky European sovereign debt are looking beyond the hedges those banks have on and are trying to determine how reliable the banks' trading partners are. Banks have tried to reduce their exposures to sovereign debt by entering into credit-default swaps, an insurance-like contract designed to pay out if the issuer of the underlying bond fails to make repayments or forces a change in terms, such as reducing the amount of principal it will pay when the debt matures.
Deutsche Bank Denies Two Top Managers Called For Early CEO Exit
Dow Jones
FRANKFURT -(Dow Jones)- Germany'sDeutsche Bank AG (DB) Friday denied that two unnamed executive board members have called for Chief Executive Josef Ackermann to leave his position earlier than planned, as reported in Friday's edition of Handelsblatt newspaper.
http://jlne.ws/vm4Y4M
By Gillian Tett - Financial Times
Earlier this year, Deutsche Bank quietly decided to reduce its exposure to Italian government bonds. But it did not do that by simply selling debt; instead it achieved this partly by buying protection against sovereign default with credit derivatives contracts. That duly enabled the doughty German giant to report that its exposure to Italian sovereign bonds had dropped an impressive 88 per cent during the first half of the year – at least, when measured on a net basis – from E8bn to less than E1bn.
http://jlne.ws/rIs5FB
Judge Approves Transfer Of 22,000+ MF Global Accounts To New Firms
By Joseph Checkler Of DOW JONES DAILY BANKRUPTCY REVIEW
NEW YORK (Dow Jones)--A judge approved on Thursday the transfer of more than 22,000 MF Global Holdings Ltd. (MFGLQ) brokerage accounts to new dealers, granting an emergency request from the trustee unwinding the company's brokerage.
http://jlne.ws/vrXZkD
MF Global Is Said to Have Used Customer Cash Improperly
New York Times
MF Global borrowed against customer funds without putting up collateral, a serious violation of Wall Street rules, said people briefed on an investigation into the firm's collapse.
http://jlne.ws/vJiYkY
CFTC’s Chilton supports voice broking
By Jeremy Grant in London - Financial Times
Bart Chilton, a commissioner at the Commodity Futures Trading Commission, has thrown his weight behind preserving voice broking as a way of executing derivatives deals within the definition of how “swap execution facilities” (SEFs) are to function. Mr Chilton’s stance places the commissioner, a Democrat, at odds with Gary Gensler, the CFTC chairman, who wants to ensure that prices on SEFs be quoted and disseminated to a wide variety of market participants in the interest of greater transparency.
http://jlne.ws/vOVtql
Crisis Ensnares Central Bank in Desperate Bid to Save Euro
BY BRIAN BLACKSTONE AND MATTHEW KARNITSCHNIG - WSJ
FRANKFURT—At a mid-July meeting of the European Central Bank's governing board, the bank's longtime president, Jean-Claude Trichet, was summoned from a conference room to take an urgent call from Berlin. It was Angela Merkel. The German chancellor and French President Nicolas Sarkozy were about to meet in Berlin to deal with Greece's debt crisis and were at odds over what losses investors might be forced to take. They hoped the ECB could broker a compromise.
http://jlne.ws/swE4QY
Draghi turns tables on eurozone leaders
By Ralph Atkins in Frankfurt - Financial Times
Mario Draghi has turned the tables on eurozone leaders by demanding they implement urgently measures to combat the escalating debt crisis, and warned of massive economic and social costs if instead the European Central Bank’s credibility was put at stake.
http://jlne.ws/t2nPGR
CME May Face ‘Liability’ In MF Global Disclosure, Goldman Says
By Matthew Leising and Silla Brush - Bloomberg
Nov. 17 (Bloomberg) -- CME Group Inc., the world’s largest futures exchange that’s fallen 8.5 percent this week, may face liability related to concerns it misled regulators over what it knew about MF Global Holdings Ltd., according to Goldman Sachs Group Inc.
http://jlne.ws/su2iN0
Banks in Italy Find an Unusual Liquidity Lifeline
By MARK SCOTT - NY Times
LONDON — The London Stock Exchange is becoming the lender of last resort for many banks in Italy as concerns over the country’s debt levels squeeze liquidity out of the Italian financial market.
http://jlne.ws/tKdZDO
Swiss Central Bank Forces MegaBanks UBS and Credit Suisse to Shrink and De-Risk
Naked Capitalism
The Financial Times gives prominent play to a story that I suspect will go largely unnoticed in the US, that of the way that the Switzerland's bank regulator, the Swiss National Bank, has forced its two biggest banks, UBS and Credit Suisse, to shed risk in a serious way and shrink.
http://jlne.ws/tuDAqo
Banks Face On-Site Capital, Liquidity Checks by Basel Group
BusinessWeek
Global regulators will carry out on- site inspections of banks to ensure they have enough capital and liquidity under rules designed to prevent another financial crisis.
http://jlne.ws/sUR2gK
UBS to take axe to investment banking
By Haig Simonian in Zurich and Megan Murphy in New York - Financial Times
UBS has outlined long-awaited plans to shrink its business dramatically and refocus on its core wealth management operations, making deep cuts to its investment bank.
http://jlne.ws/v1zZ3Z
Sovereign CDS Concerns Shift To Counterparty Risk
By Katy Burne Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Investors and policy makers scrambling to determine how banks may be hurt by losses on risky European sovereign debt are looking beyond the hedges those banks have on and are trying to determine how reliable the banks' trading partners are. Banks have tried to reduce their exposures to sovereign debt by entering into credit-default swaps, an insurance-like contract designed to pay out if the issuer of the underlying bond fails to make repayments or forces a change in terms, such as reducing the amount of principal it will pay when the debt matures.
Deutsche Bank Denies Two Top Managers Called For Early CEO Exit
Dow Jones
FRANKFURT -(Dow Jones)- Germany'sDeutsche Bank AG (DB) Friday denied that two unnamed executive board members have called for Chief Executive Josef Ackermann to leave his position earlier than planned, as reported in Friday's edition of Handelsblatt newspaper.
http://jlne.ws/vm4Y4M
Rabu, 16 November 2011
Top Interest Rate Headlines 11-16-2011: ELX to Narrow Ticks to Quarter Intervals in 10-Year Treasury Contract
ELX to Narrow Ticks to Quarter Intervals in 10-Year Treasury Contract
http://jlne.ws/sEUiDl
CFTC Supports Prompt Initiation of MF Global Customer Claims and Moving “Cash-Only” Accounts
http://go.usa.gov/IEp
Fitch:Developed & emerging sovereign CDS liquidity converges
http://jlne.ws/v49u1R
Google suspends ads with over 500 Internet advertisers linked to 85 alleged mortgage fraud schemes cited by SIGTARP
http://jlne.ws/tCNEy8
Government plans to reform PFI model - HM Treasury
http://jlne.ws/s2CXbO
European Utilities Face Debt-Rating Downgrades, Moody’s Says
http://jlne.ws/thO4FT
Moody's blasts plan to curb ratings agencies
http://jlne.ws/vVNgws
France needs tough reforms to halt debt spike
http://jlne.ws/ugrwG5
Opposing view: Don't tighten rules on banks
By Tim Ryan - USA Today
The failure of MF Global, while unfortunate, highlights that our financial system can absorb a failure of a firm without the use of taxpayer money. Unlike the events of 2008, the government did not have to step in to save a firm when its investment strategies don't pay off. MF Global's shareholders, not taxpayers, suffered the loss.
http://jlne.ws/rHPw1C
How To Stop Bankers From Cheating
Forbes
What shall we do with the big bad banks? In part 1 of the series, I described the persistent pattern of securities violations discovered by the SEC in the biggest US banks. In Part 2, I explored the implications of what science has learned about changing persistent asocial behavior.
http://jlne.ws/ujgr8H
Bundesbank Slams Crisis Proposals
By WILLIAM LAUNDER - WSJ
FRANKFURT—Germany's powerful Bundesbank Wednesday issued a stark rebuke of the euro zone's response to the debt crisis, dismissing several recent proposals aimed at calming markets and bolstering the currency bloc's bailout fund.
http://jlne.ws/tcGbNV
Citigroup Plans To Cut 3,000 Jobs
RTT News
Financial services giant Citigroup Inc. (C) is planning to cut 3,000 jobs, or around 1 percent of its workforce, the Wall Street Journal reported Tuesday, citing people familiar with the situation. The move is said to be part of the company's efforts to cut costs amid fears over the European debt crisis and new regulations that seek to cap bank profits in previously lucrative areas.
http://jlne.ws/uHo9hF
Merrill Bristles as BofA Toils On
BY DAN FITZPATRICK AND JENNIFER HOYT CUMMINGS - WSJ
Bank of America Corp. is on the right track, Chief Executive Brian Moynihan is expected to tell his board this week at a three-day strategy meeting.
http://jlne.ws/saPSIH
Morgan Stanley May Gain From Wall Street's Fixed-Income Shift
BusinessWeek
Morgan Stanley, the sixth-biggest U.S. bank, may benefit from a decline in the dominance of fixed- income trading on Wall Street, said Paul J. Taubman, co- president of the firm's institutional-securities group.
http://jlne.ws/uWLdlL
Goldman Sachs's Blankfein Says World Growth Will 'Snap Back'
BusinessWeek
Goldman Sachs Group Inc., the fifth- biggest U.S. bank, is preparing for a faster global economic rebound than most forecasters expect, Chairman and Chief Executive Officer Lloyd C. Blankfein said.
http://jlne.ws/tgQyno
Banks adding ex-government leaders to boards
San Francisco Chronicle
Wells Fargo & Co. is joining other financial firms in adding former government leaders as federal regulation increases. Federico Pena, who had terms running the transportation and energy departments for President Bill...
http://jlne.ws/sM5uyg
http://jlne.ws/sEUiDl
CFTC Supports Prompt Initiation of MF Global Customer Claims and Moving “Cash-Only” Accounts
http://go.usa.gov/IEp
Fitch:Developed & emerging sovereign CDS liquidity converges
http://jlne.ws/v49u1R
Google suspends ads with over 500 Internet advertisers linked to 85 alleged mortgage fraud schemes cited by SIGTARP
http://jlne.ws/tCNEy8
Government plans to reform PFI model - HM Treasury
http://jlne.ws/s2CXbO
European Utilities Face Debt-Rating Downgrades, Moody’s Says
http://jlne.ws/thO4FT
Moody's blasts plan to curb ratings agencies
http://jlne.ws/vVNgws
France needs tough reforms to halt debt spike
http://jlne.ws/ugrwG5
Opposing view: Don't tighten rules on banks
By Tim Ryan - USA Today
The failure of MF Global, while unfortunate, highlights that our financial system can absorb a failure of a firm without the use of taxpayer money. Unlike the events of 2008, the government did not have to step in to save a firm when its investment strategies don't pay off. MF Global's shareholders, not taxpayers, suffered the loss.
http://jlne.ws/rHPw1C
How To Stop Bankers From Cheating
Forbes
What shall we do with the big bad banks? In part 1 of the series, I described the persistent pattern of securities violations discovered by the SEC in the biggest US banks. In Part 2, I explored the implications of what science has learned about changing persistent asocial behavior.
http://jlne.ws/ujgr8H
Bundesbank Slams Crisis Proposals
By WILLIAM LAUNDER - WSJ
FRANKFURT—Germany's powerful Bundesbank Wednesday issued a stark rebuke of the euro zone's response to the debt crisis, dismissing several recent proposals aimed at calming markets and bolstering the currency bloc's bailout fund.
http://jlne.ws/tcGbNV
Citigroup Plans To Cut 3,000 Jobs
RTT News
Financial services giant Citigroup Inc. (C) is planning to cut 3,000 jobs, or around 1 percent of its workforce, the Wall Street Journal reported Tuesday, citing people familiar with the situation. The move is said to be part of the company's efforts to cut costs amid fears over the European debt crisis and new regulations that seek to cap bank profits in previously lucrative areas.
http://jlne.ws/uHo9hF
Merrill Bristles as BofA Toils On
BY DAN FITZPATRICK AND JENNIFER HOYT CUMMINGS - WSJ
Bank of America Corp. is on the right track, Chief Executive Brian Moynihan is expected to tell his board this week at a three-day strategy meeting.
http://jlne.ws/saPSIH
Morgan Stanley May Gain From Wall Street's Fixed-Income Shift
BusinessWeek
Morgan Stanley, the sixth-biggest U.S. bank, may benefit from a decline in the dominance of fixed- income trading on Wall Street, said Paul J. Taubman, co- president of the firm's institutional-securities group.
http://jlne.ws/uWLdlL
Goldman Sachs's Blankfein Says World Growth Will 'Snap Back'
BusinessWeek
Goldman Sachs Group Inc., the fifth- biggest U.S. bank, is preparing for a faster global economic rebound than most forecasters expect, Chairman and Chief Executive Officer Lloyd C. Blankfein said.
http://jlne.ws/tgQyno
Banks adding ex-government leaders to boards
San Francisco Chronicle
Wells Fargo & Co. is joining other financial firms in adding former government leaders as federal regulation increases. Federico Pena, who had terms running the transportation and energy departments for President Bill...
http://jlne.ws/sM5uyg
Selasa, 15 November 2011
Top Interest Rate Headlines 11-15-2011: Europe gets tough with ratings agencies
Europe gets tough with ratings agencies
http://jlne.ws/rF3rUW
Latest CME Group Information Regarding MF Global
http://jlne.ws/uTURyQ
Eurozone teeters on edge of recession
http://jlne.ws/vfFFeb
IMF Sees ‘Buildup’ of China Bank Risk Needing More Oversight
http://jlne.ws/rDBKaH
Is America following Japan?: Two things to remember about Japan
http://jlne.ws/rrhANj
ICE Reaches $25 Trillion Milestone in Global CDS Cleared
http://jlne.ws/tnlgnj
Economic woes dominate Spain election campaign
http://jlne.ws/uAiY4I
A State-by-State Look at Long Road to Jobs Recovery - Real Time Economics
http://jlne.ws/vpRVTC
Meeting Bank Capital Requirements in Europe
http://jlne.ws/rJWioe
Europe Growth Holds at 0.2% as Region Braces for Recession
http://jlne.ws/syxX13
Debt committee: Deal or no deal - then what?
http://jlne.ws/utbrxy
Empire State Manufacturing Survey shows conditions for New York manufacturers held steady in Nov
http://jlne.ws/tgEimj
UBS Pays $8 Million to Resolve Claims Over Short-Sale ‘Locates’
http://jlne.ws/tSNFSo
http://jlne.ws/rF3rUW
Latest CME Group Information Regarding MF Global
http://jlne.ws/uTURyQ
Eurozone teeters on edge of recession
http://jlne.ws/vfFFeb
IMF Sees ‘Buildup’ of China Bank Risk Needing More Oversight
http://jlne.ws/rDBKaH
Is America following Japan?: Two things to remember about Japan
http://jlne.ws/rrhANj
ICE Reaches $25 Trillion Milestone in Global CDS Cleared
http://jlne.ws/tnlgnj
Economic woes dominate Spain election campaign
http://jlne.ws/uAiY4I
A State-by-State Look at Long Road to Jobs Recovery - Real Time Economics
http://jlne.ws/vpRVTC
Meeting Bank Capital Requirements in Europe
http://jlne.ws/rJWioe
Europe Growth Holds at 0.2% as Region Braces for Recession
http://jlne.ws/syxX13
Debt committee: Deal or no deal - then what?
http://jlne.ws/utbrxy
Empire State Manufacturing Survey shows conditions for New York manufacturers held steady in Nov
http://jlne.ws/tgEimj
UBS Pays $8 Million to Resolve Claims Over Short-Sale ‘Locates’
http://jlne.ws/tSNFSo
Senin, 14 November 2011
Top Interest Rate Headlines 11-14-2011: Chance Of 2012 U.S. Recession Tops 50 Percent: Fed Paper
Chance of 2012 U.S. recession tops 50 percent: Fed paper
http://jlne.ws/uVct0C
A State-by-State Look at Long Road to Jobs Recovery
http://jlne.ws/uGoDkr
Chart: Average rate for a 15-year, fixed-rate mortgage in the U.S. dips to 3.30
http://jlne.ws/vuZFnh
Italian bank UniCredit announces it will cut 5,200 jobs after a Q3 net loss of 10.6 billion euros http://jlne.ws/sKsLNe
CME Group Monday Letter Re MF Global Situation To Trading Community
http://jlne.ws/vs6kEU
As European Nations Teeter, Only Lenders Get Central Bank’s Help
http://jlne.ws/tChH2w
Lawyers, firms line up as MF Global crumbles
http://jlne.ws/vMFTaZ
Ackermann quits Deutsche Bank
http://jlne.ws/w17XsF
Merkel Urges Party to Help Save Euro
http://jlne.ws/uoN9Ii
New working paper on the contraction of foreign direct investment in the U.S. during the financial crisis
http://jlne.ws/rHToe5
Why Munis Are Worth a Look
http://jlne.ws/s27TcS
Berlusconi Bravado Proved No Match for Crisis
http://jlne.ws/tylGyx\
Economists lower 2012 growth outlook: survey
http://jlne.ws/vsetQm
UBS board to anoint Ermotti CEO this week: paper
http://jlne.ws/saHWFD
http://jlne.ws/uVct0C
A State-by-State Look at Long Road to Jobs Recovery
http://jlne.ws/uGoDkr
Chart: Average rate for a 15-year, fixed-rate mortgage in the U.S. dips to 3.30
http://jlne.ws/vuZFnh
Italian bank UniCredit announces it will cut 5,200 jobs after a Q3 net loss of 10.6 billion euros http://jlne.ws/sKsLNe
CME Group Monday Letter Re MF Global Situation To Trading Community
http://jlne.ws/vs6kEU
As European Nations Teeter, Only Lenders Get Central Bank’s Help
http://jlne.ws/tChH2w
Lawyers, firms line up as MF Global crumbles
http://jlne.ws/vMFTaZ
Ackermann quits Deutsche Bank
http://jlne.ws/w17XsF
Merkel Urges Party to Help Save Euro
http://jlne.ws/uoN9Ii
New working paper on the contraction of foreign direct investment in the U.S. during the financial crisis
http://jlne.ws/rHToe5
Why Munis Are Worth a Look
http://jlne.ws/s27TcS
Berlusconi Bravado Proved No Match for Crisis
http://jlne.ws/tylGyx\
Economists lower 2012 growth outlook: survey
http://jlne.ws/vsetQm
UBS board to anoint Ermotti CEO this week: paper
http://jlne.ws/saHWFD
November 10, 2011: Top European Central Bank Official Lorenzo Bini-Smaghi To Resign
November 10, 2011
JLN Interest Rates - http://www.jlninterestrates.com
Conversation Starter
Robert Pickel Appointed Chief Executive Officer of International Swaps and Derivatives Association
Conrad Voldstad to Serve as Special Advisor to the Board
NEW YORK, November 10, 2011 – The International Swaps and Derivatives Association, Inc. (ISDA) today announced that its Board of Directors has appointed Robert Pickel as Chief Executive Officer, effective January 1, 2012. Mr Pickel, who is one of the derivatives markets’ most experienced and accomplished executives, returns to the post after serving as the Association’s Executive Vice Chairman for the past two years.
Conrad Voldstad, ISDA CEO since November 2009, will continue to work with ISDA as a Special Advisor at the request of the board. Mr Voldstad, who has been a leader in the swaps and capital markets for three decades, will assist on strategic initiatives.
“Connie Voldstad is an industry pioneer, and the board and I are grateful for his tremendous contributions to ISDA and the OTC derivatives markets,” said Stephen O’Connor, ISDA Chairman and Managing Director, Morgan Stanley. “The board looks forward to working with Bob Pickel as ISDA’s CEO. Bob’s appointment, together with George Handjinicolaou’s recent selection as Head of Europe and Deputy CEO, and Connie’s role as Special Advisor, provide ISDA with a very strong management team. ISDA is well positioned to navigate the challenges of the next few years as we work to foster safe and efficient derivatives markets for all users of derivative products and move forward through a period of unprecedented regulatory reform,” he said.
“ISDA has a terrific history of working on behalf of the OTC derivatives markets and its contributions are unequalled among trade associations globally,” said Mr Voldstad. “I have been delighted to partner with Bob Pickel to address the key issues facing our markets. We have clearly made important strides and I am certain that Bob is the right person to lead the Association forward as it makes further progress toward its key goals.”
“Connie has been an ideal leader of ISDA. I have enjoyed working with him and I look forward to his continued contributions,” said Mr Pickel. “ISDA faces a number of opportunities and challenges ahead. Our focus is on addressing these issues and fulfilling our mandate by supporting derivatives markets across asset classes, geographies, and trading and clearing environments. To do this, we will continue to reach out to all types of market participants around the world.”
Prior to joining ISDA, Mr Pickel was assistant general counsel in the Legal Department of Amerada Hess Corporation, an international oil and gas company, from 1991 to 1997. He has also worked at the law firm of Cravath, Swaine & Moore in New York and London, where he represented ISDA in a variety of matters. Mr Pickel graduated from Williams College and received his law degree from New York University.
About ISDA
Since 1985, ISDA has worked to make the global over-the-counter (OTC) derivatives markets safer and more efficient. Today, ISDA is one of the world’s largest global financial trade associations, with over 825 member institutions from 57 countries on six continents. These members include a broad range of OTC derivatives market participants: global, international and regional banks, asset managers, energy and commodities firms, government and supranational entities, insurers and diversified financial institutions, corporations, law firms, exchanges, clearinghouses and other service providers. Information about ISDA and its activities is available on the Association's web site: www.isda.org.
ISDA® is a registered trademark of the International Swaps and Derivatives Association, Inc.
-------------------------------------
Celent Says U.S. Triparty Repo Market Has Decreased To $1.6 Bln Because Of Financial Crisis, Weaker Global Economy
According to a new report from financial research firm Celent, the U.S. triparty repo market has decreased from a high of $2.8 billion on average daily collateral value in May 2008 to $1.6 billion in August 2011. This is due to the impact of the financial crisis and the weaker global economy on the repo markets, according to Celent.
Also noted in the report is that the reforms process has become significantly more complex than it was expected to be. Therefore, changes such as three-way trade confirmation and reduction in credit exposures would be delayed, with the latter expected to see fruition in 2012 at the earliest. Also, the measures would impose costs of implementation on the cash investors as well, which might deter participation in the market.
See the full report - Triparty Repo in the U.S.: Well Begun But Far from Done - here.
-- Christine Nielsen
Lead Stories
Top European Central Bank Official Lorenzo Bini-Smaghi To Resign
http://jlne.ws/vej71H
ECB policymakers reject bigger crisis role for bank
By Gilbert Kreijger and Paul Carrel, Reuters
The European Central Bank cannot intervene much more aggressively to tackle the euro zone debt crisis, three ECB policymakers from the bloc's core said on Thursday, pressing governments to act instead.
http://jlne.ws/tUmL0d
CFTC Commissioner Jill E. Sommers to Act as Senior Commissioner for the Agency For Matters Relating to MF Global, Inc. Bankruptcy
http://jlne.ws/vAfry1
**CN: As reported by JLN earlier this week.
Bernanke: Small Businesses Important To Economic Recovery
By Luca Di Leo and Jamila Trindle, WSJ.com
Small businesses are important to the economic recovery and to U.S. global competitiveness, Federal Reserve Chairman Ben Bernanke said Wednesday in welcoming remarks at a Fed conference on small business entrepreneurship during the recovery.
http://jlne.ws/v5NqrS
Bernanke urges banks to help small businesses
AP via Yahoo! News
Federal Reserve Chairman Ben Bernanke says small businesses are struggling to get loans more than two years after the recession ended. He says banks could help them by easing overly tight lending standards.
http://jlne.ws/upWv9X
FRB: Speech--Bernanke, Town Hall Meeting Remarks--November 10, 2011
It is an honor and a privilege for me to join the men and women of Fort Bliss today. As someone who puts a high value on public service, I want to thank the soldiers here for their service to our country and for helping to make the world a safer place. I admire your professionalism and dedication. I want to thank your family members as well; servicemembers could not achieve what they do without the support and sacrifices of their families. You should all be proud of what you have accomplished and what you stand for.
http://jlne.ws/tvnriy
Glitch from S&P caused France rating rumor
By Adam Button, ForexLive
S&P is saying France remains AAA with a stable outlook. It says some kind of glitch caused a change on its website that sparked the rumors. It says it’s investigating what happened.
http://jlne.ws/uTuEV1
Berlusconi wins vote, but will resign
UPI
ROME, Nov. 8 (UPI) -- Italian Prime Minister Silvio Berlusconi, who narrowly won a key budget vote Tuesday, will step down once economic reforms pass, Italy's president said.
http://jlne.ws/stFXBV
Lucas Papademos, Former European Central Bank Official, Named New Greek Prime Minister
Huffington Post
Senior banker Lucas Papademos was named Thursday to be the new prime minister of an interim Greek unity government that seeks to cement a new European debt deal and stave off national bankruptcy.
http://jlne.ws/uxehvO
Greek Prime Minister George Papandreou has agreed to step down
Schaeffers Research
U.S. stock futures are pointed south this morning. Despite last week's unexpected dose of promising domestic data, coming in the form of a drop in unemployment, investors seem unable to take their cues from anywhere but across the pond...( Read More )
http://jlne.ws/tBwdqs
Headcount continues to rise at global banks
Richard Partington, Financial News
Many banks said in the second-quarter results that they planned to rein in costs and cut back on the number of staff, due to an increasing regulatory burden and plummeting trading volumes amid economic uncertainty. However, there were almost 15,000 more staff employed by banks at the end of the third quarter than three months earlier, according to data compiled by Financial News on banks’ recently published earnings statements.
http://jlne.ws/sIdWQv
Alabama county files biggest municipal bankruptcy
By Melinda Dickinson, Reuters
Alabama's Jefferson County filed for bankruptcy court protection on Wednesday in the biggest municipal bankruptcy in U.S. history.
http://jlne.ws/sQHm1d
Jefferson County Bankruptcy Filing May Rekindle Municipal Credit Concerns
By Michael McDonald, Bloomberg
The bankruptcy of Jefferson County, Alabama, may keep municipal yields that are already high relative to U.S. Treasuries elevated as some investors flee tax- exempt debt, according to Michael Schroeder, president and chief investment officer of Wasmer, Schroeder & Co.
http://jlne.ws/u3xanP
Is changing a leader bad for the bond market?
Sebastian Walsh, Financial News
Greece has cast off George Papandreou. Italy is about to send Silvio Berlusconi packing. The latest changes at the top of eurozone governments, which have been incapable of managing their debt, may prove to be no bad thing. Historically, however, there is a notable - albeit unscientific - correlation between the countries currently facing the wrath of the bond market and the average term-length enjoyed by their political leaders in the modern era.
http://jlne.ws/sZ3sXj
Did MF Global "Embezzle" $633 Million Of Other People's Money?
Forbes
I'll tell you why I ask this probing question. I received an email this morning from a seemingly enlightened fellow quite conversant with the foibles of the futures trading business. He makes a quite convincing case for the ease by which MF Global might have grasped onto customers' cash to meet its own margin calls on trades going south or just to resolve trading it was doing in its own name. I ...
http://jlne.ws/uJ8plp
MF Clients to Get Cash at CME Once Exchange Verifies Transfers
BusinessWeek
Clients of MF Global Holdings Ltd., the futures broker that filed for bankruptcy protection last week, can access their frozen cash collateral at CME Group Inc. after the exchange verifies all traders' accounts have been transferred to new brokers.
http://jlne.ws/roI7SS
MF Global Creditors to Form Committee, Seek Recoveries
BusinessWeek
MF Global Holdings Ltd. creditors looking to recover from the eighth largest bankruptcy in U.S. history may sue the company's advisers, search for assets overseas and seek information from a probe into the commingling of customer accounts at the brokerage, a bankruptcy lawyer said.
http://jlne.ws/urqp81
Corzine Forgot Lessons of Long-Term Capital: Roger Lowenstein
BusinessWeek
Thirteen years ago, when the hedge fund Long-Term Capital Management was desperately negotiating with Wall Street banks for a bailout, Jon Corzine, the chief executive officer of Goldman Sachs Group Inc., called John Meriwether, LTCM's founder, and read him the riot act. Wall Street would invest, Corzine said, but "JM" would have to accept more controls, including strict supervision over his ...
http://jlne.ws/uWou5h
Chicago's Harris Bank plays role in MF Global mess
Reuters via Yahoo! News
(Reuters) - The hunt for the missing $600 million in customer money at MF Global Holdings Ltd may begin with Harris Bank, a Chicago-based lender that often holds client money for many large futures brokerage firms.
http://jlne.ws/vz3lCj
Malaysian Man Gets 10 Years in Federal Reserve Hacking Case
BusinessWeek
A Malaysian man who pleaded guilty to conducting a credit-card scheme and who was accused of hacking the Federal Reserve's computers got a 10-year prison sentence.
http://jlne.ws/tVWLZx
Economist sees restrained US recovery in 2012
Deseret News
A Federal Reserve economist believes the U.S. will continue to struggle to recover from the Great Recession in the coming year.
http://jlne.ws/vQ3Rzo
Unloved Treasury Notes Becoming New Favorite in Fed's Twist
BusinessWeek
The U.S. Federal Reserve is finding no shortage of demand for the short-term bonds it's selling to focus on longer-maturity debt, a sign that the strength in the economy seen in October may prove fleeting.
http://jlne.ws/sJTmNr
A Deep Dive Into The Fed's Latest Survey Of Loan Officers
Business Insider
Yesterday, the Federal Reserve released the senior loan officer survey. This is a very important document as it provides extensive detail about the condition of US lending.
http://jlne.ws/u8TwK9
Fannie Mae Seeks $7.8 Billion From Treasury Department After Posting Loss
Bloomberg
Fannie Mae, the mortgage-finance company operating under U.S. conservatorship, will seek $7.8 billion in Treasury Department aid to balance its books after reporting a third-quarter loss.
http://jlne.ws/vF1R6j
Treasury plans private sales of bank warrants rather than public auctions for smaller banks
Washington Post
WASHINGTON - The government plans to begin selling some warrants it received from bailed-out companies to financial institutions rather than offering the warrants in public auctions. The sales are part of the government's effort to recoup the costs of the $700 billion financial bailout. The Treasury Department said Tuesday that it will hold private sales to institutional buyers of warrants in ...
http://jlne.ws/uCnZLH
U.S. savings bonds to go paperless next year
Erie Times-News
Making their final appearance in Christmas stockings this season paper U.S. savings bonds.
http://jlne.ws/vHEZaL
U.S. recorded $1.3 trillion deficit in 2011
Los Angeles Times
The federal government recorded a $1.3-trillion budget deficit in the 2011 fiscal year, roughly even with the previous year's shortfall.
http://jlne.ws/urGhUi
Pimco: Europe, US Risk High Inflation in Medium Term
CNBC
European and U.S. inflation will rise in the medium- to long-term, according to Berdibek Ahmedov, manager for European and UK real return products at Pacific Investment Management Company (Pimco).
http://jlne.ws/s8fNnn
PIMCO's Bill Gross November Letter: Pennies from Heaven
International Business Times
The latest monthly missive from Bill Gross:Pennies from HeavenArticle IntroductionOnce interest rates inch close to zero and discounted future cash flows are elevated in price, it's difficult to generate much more return if economic growth doesn't follow. Equity markets should be dominated.
http://jlne.ws/uQThsJ
Paul Volcker says Volcker rule too complicated
Reuters via Yahoo! News
SINGAPORE (Reuters) - The Volcker rule is too long and complicated and financial lobbyists are to blame, said the man who gave his name to the new regulation on bank trading.
http://jlne.ws/seqxyq
MiFID Conference: No Area Should Remain Unregulated
More Than 100 Financial Experts Discussed The Developments In And Impacts Of The EU Directive At The Fifth Boerse Stuttgart MiFID Conference
Press Release
On Tuesday, 8 November 2011, Boerse Stuttgart hosted a conference on the EU Markets in Financial Instruments Directive (MiFID). This was the fifth such meeting in Stuttgart of representatives from supervisory authorities and banks as well as financial advisers and academics. More than 100 experts discussed the current state of affairs and the implementation of the Directive in banks, stock exchanges and authorities, focusing on a number of topics, including the European Commission’s proposals for revision of the Directive.
http://jlne.ws/uXKNdZ
Events
International Banking Conference 2011
November 10 - November 11, 2011
Banking conference with a global focus
http://jlne.ws/ow1CVU
Financial Issues And The Economy
November 13, 2011
Discussion of economic issues in Connecticut
http://jlne.ws/tp3UCB
Fourteenth Annual International Banking Conference
November 29 - December 1, 2011
Federal Reserve Bank of Chicago holds 14th International Banking Conference
http://jlne.ws/nTDrKO
7th Annual FIA Asia Derivatives Conference
November 29 - December 1, 2011
FIA looks at the futures and options industry in Asia
http://jlne.ws/vkOpsA
Exchanges, Clearing Houses & MTFs
NYSE chief confident over D Borse merger
FT Finance News (ext) via Yahoo! Finance
Duncan Niederauer, chief executive of NYSE Euronext, expressed confidence in the proposed tie-up with Deutsche Borse, dismissing some regulators' concerns about vertical integration as "idealistic". ...
http://jlne.ws/uosKj6
U.S. Clearing Houses Announce MF Global Bulk Transferee Confirmation Service
PR Newswire
CHICAGO, Nov. 4, 2011 /PRNewswire/ -- As part of the bulk transfer process for MF Global customer accounts and collateral held at U.S. derivatives clearinghouses, CME Clearing, ICE Clear US, The Clearing Corporation, KCBOT Clearing Corp., MGEX, NYSE Liffe US and The Options Clearing...
http://jlne.ws/rRl0MM
New York Portfolio Clearing Statement on Transfer of MF Global Customer Accounts
PR Newswire
NEW YORK, Nov. 4, 2011 /PRNewswire/ -- Today, New York Portfolio Clearing (NYPC) successfully completed the transfer of all of its MF Global customer accounts and specified amounts of associated NYPC-held collateral to other qualified NYPC clearing firms according to the authorization and...
http://jlne.ws/spaxDM
Firms & Banks
U.S. Bancorp Sued by Pension Fund Over Investor Losses on CDOs
American Banker
U.S. Bancorp was sued by an Oklahoma police pension fund over allegations investors in mortgage bonds were hurt by the bank failing to ensure that securities were backed by loans.
http://jlne.ws/s9YQfw
Bank of New York, MF Global, Bank Capital, Silver: Compliance
Bloomberg
Nov. 7 (Bloomberg)-- Bank of New York Mellon Corp. (BK) , the world's largest custody bank, is in early stage talks with federal prosecutors to settle accusations the bank overcharged customers for foreign-exchange trading, according to a person briefed on the discussions.
http://jlne.ws/sZFxMN
Berkshire Hathaway on Cusp of Oversight by Fed Under Risk Council Criteria
Bloomberg
Berkshire had $29.7 billion in credit-default swaps linked to its debt as of Oct. 28, putting it just under a $30 billion threshold proposed last month by the Financial Stability Oversight Council.
http://jlne.ws/tayEj7
Citigroup, BNY, News Corp., Union Bank, Goldman in Court News
Bloomberg
Citigroup Inc. (C) was accused of fraud by Moneygram Payment Systems Inc., the electronic cash-transfer business, in a lawsuit seeking to recover an alleged $140 million in collateralized debt obligation losses.
http://jlne.ws/sdGZoP
JPMorgan Sued by Louisiana Pension Over Treasury's Cuba, Iran Sanctions
Bloomberg
JPMorgan Chase & Co. (JPM) was sued by Louisiana 's pension fund for police, which said the bank's $88.3 million settlement with the U.S. Treasury Department stemmed from a breach of fiduciary duty by its directors.
http://jlne.ws/vDyasi
PIMCO Boosts Portfolio Management Analytics Team With Three New Hires
Marketwire Finance Press Releases via Yahoo! Finance
LONDON-- - PIMCO, a leading global investment management firm, has expanded its portfolio management analytics team with the appointment of three new investment professionals in its New York and London ...
http://jlne.ws/u8YUGK
Morgan Stanley accused over mortgage bonds
FT Finance News (ext) via Yahoo! Finance
Morgan Stanley (AMEX:MWD) revealed on Monday it is being targeted over alleged mortgage mis-selling by the same law firm that brokered an $8.5bn settlement with Bank of America (NYSE:BAC - News).
http://jlne.ws/s0X4Ng
State Street Renews Mandate with PIMCO for $1.3 Trillion in Assets
Business Wire
BOSTON--(BUSINESS WIRE)--State Street Corporation (NYSE: STT), one of the world's leading providers of financial services to institutional investors, announced today that it has been retained by Pacific Investment Management Co. (PIMCO) to provide an array of investment manager operations outsourcing services for $1.3 trillion in assets. This represents a renewal of one of the first and largest ...
http://jlne.ws/snXkiC
UBS to shut U.S. asset-backed securities unit: report
Reuters via Yahoo! News
UBS is shutting its asset-backed securities business in the United States, Swiss newspaper HandelsZeitung reported on Thursday without citing sources.
http://jlne.ws/rKvyrI
Citi, JPMorgan To Feel Biggest Bite Of Basel Capital Surcharges
Forbes
While the regulation seeks to ensure that bigger banks are better protected from failing, there is also a fear of banks hiding data about their actual risk levels in order to avoid higher surcharges.
http://jlne.ws/uhnQU4
Crédit Agricole Profit Hit by Greece
BY NOEMIE BISSERBE - WSJ
PARIS—Crédit Agricole SA on Thursday reported a 65% drop in third-quarter net profit, hit by a heavier-than-expected write-down on its Greek government bonds and further losses at its troubled Emporiki Bank of Greece unit.
http://jlne.ws/w4QCpS
HSBC Sees Bad-Debt Plague Rear Its Ugly Head Again
Dow Jones
Bad debts at HSBC Holdings PLC (HBC) soared to their highest quarterly level since 2009 as cash-strapped U.S. homeowners stopped making mortgage payments and customers from Brazil to Hong Kong felt the pinch from a weakening global economy.
http://jlne.ws/tq1R4O
Goldman Sachs Is Said to Raise $1.1 Billion From Sale of Its ICBC Holding
Bloomberg
Goldman Sachs sold 1.75 billion shares at HK$4.88 each, the people said, asking not to be identified because the details are still private. That is 6 percent below ICBC's closing price in Hong Kong.
http://jlne.ws/sz4lZS
Judge attacks SEC’s Citi settlement
By Kara Scannell in New York, Financial Times
A US judge has attacked Securities and Exchange Commission enforcement policies in a hearing which casts doubt on whether he will approve a settlement between the securities regulator and Citigroup over the sale of mortgage-related products.
http://jlne.ws/t25Ejb
Regulators
Federal Reserve Bank of Philadelphia President Charles Plosser said "Concerns the economy ...
Guru Focus
By FOX Business. Federal Reserve Bank of Philadelphia President Charles Plosser spoke with FOX Business Network's (FBN) Peter Barnes about the United States economy and whether the Federal Reserve will take further action to aid in the recovery. Plosser said "concerns we had in July, August, and September that the economy was at risk of falling off a cliff have pretty much dissipated" and thus ...
http://jlne.ws/sHpFka
Rosengren Says Federal Reserve Should Act to Bring Down Unemployment Rate
Bloomberg
Federal Reserve Bank of Boston President Eric Rosengren said the central bank should act to bring down "stubbornly, and unacceptably, high" joblessness that's been stuck near 9 percent or above since April 2009.
http://jlne.ws/uCKOMf
Kocherlakota Says Fed Should Make Public Contingency Plan
BusinessWeek
Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said the U.S. central bank should develop and make public a contingency plan that would explain how it would react to developments in the economy.
http://jlne.ws/uWcO2P
Fed's Plosser: No need to dissent at Nov meeting
Market Watch
Philadelphia Federal Reserve Bank President Charles Plosser said Tuesday that he decided not to dissent from last week's policy statement because he supported the decision and didn't want to "re-litigate" past statements. Plosser voted against the Fed's August and September policy moves, one of three Fed regional banks presidents to do so, a rare high number for the ...
http://jlne.ws/sdsarJ
Video: Sumner Says Nominal GDP Target Can Save the Recovery
Wall Street Journal Blogs
Bentley University economics professor Scott Sumner says the Federal Reserve ought to be far more aggressive in stimulating the U.S. economy and explains how a nominal GDP target would be a better way to run monetary policy.
http://jlne.ws/sBHRbG
OTC
Euroclear Bank Arranges New Greek Government Debt Swap
Press Release
Euroclear Bank, which recently orchestrated the first swap of Greek government bonds between a number of consenting primary dealers in such securities, will run a second swap in such debt instruments next week.
http://jlne.ws/sRzS4y
Global News
Australian Consumer Confidence Jumped in November on Rate Cut
BusinessWeek
Australian consumer confidence jumped in November as the central bank's first interest-rate cut in 31 months lowered payments for mortgage holders, a private survey showed.
http://jlne.ws/rvhj0S
Swiss Banks, EU Ratings, Fund Reform, U.K. Tax, ICE: Compliance
Bloomberg
Patrick Odier, chairman of the Swiss Bankers Association, said an agreement between Switzerland and the U.S. to resolve a dispute over tax evasion by Americans with Swiss banks should be reached "as soon as possible".
http://jlne.ws/sKIz7m
Italian Bond Rates Rise to New Levels
New York Times
Bond rates are being driven to levels that earlier forced Greece, Ireland and Portugal to seek bailouts.
http://jlne.ws/ub1cDE
Premature for China to Reverse Monetary Policy: Experts
CNBC
China's benign inflation figures for October suggest that Beijing's measures to tame rising prices are working, but don't expect policymakers to reverse their monetary policy stance anytime soon, economists told CNBC on Wednesday
http://jlne.ws/sbweOk
Monetary Policy and Risk-Premium Shocks in Hungary: Results from a Large Bayesian VAR
IMF
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy.
http://jlne.ws/sPBx3J
Disclaimer: The John Lothian, Environmental Markets, JLN Metals, JLN Managed Futures, JLN Interest Rates, JLN Options and JLN FX newsletters and blogs and MarketsWiki are products of John J. Lothian & Company, Inc. The opinions expressed in these publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers.
Futures and options trading involve risk. Past results are no indication of future performance.
Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any web site or newsletter content.
Copyright 2011 John J. Lothian & Company, Inc. All Rights Reserved.
JLN Interest Rates - http://www.jlninterestrates.com
Conversation Starter
Robert Pickel Appointed Chief Executive Officer of International Swaps and Derivatives Association
Conrad Voldstad to Serve as Special Advisor to the Board
NEW YORK, November 10, 2011 – The International Swaps and Derivatives Association, Inc. (ISDA) today announced that its Board of Directors has appointed Robert Pickel as Chief Executive Officer, effective January 1, 2012. Mr Pickel, who is one of the derivatives markets’ most experienced and accomplished executives, returns to the post after serving as the Association’s Executive Vice Chairman for the past two years.
Conrad Voldstad, ISDA CEO since November 2009, will continue to work with ISDA as a Special Advisor at the request of the board. Mr Voldstad, who has been a leader in the swaps and capital markets for three decades, will assist on strategic initiatives.
“Connie Voldstad is an industry pioneer, and the board and I are grateful for his tremendous contributions to ISDA and the OTC derivatives markets,” said Stephen O’Connor, ISDA Chairman and Managing Director, Morgan Stanley. “The board looks forward to working with Bob Pickel as ISDA’s CEO. Bob’s appointment, together with George Handjinicolaou’s recent selection as Head of Europe and Deputy CEO, and Connie’s role as Special Advisor, provide ISDA with a very strong management team. ISDA is well positioned to navigate the challenges of the next few years as we work to foster safe and efficient derivatives markets for all users of derivative products and move forward through a period of unprecedented regulatory reform,” he said.
“ISDA has a terrific history of working on behalf of the OTC derivatives markets and its contributions are unequalled among trade associations globally,” said Mr Voldstad. “I have been delighted to partner with Bob Pickel to address the key issues facing our markets. We have clearly made important strides and I am certain that Bob is the right person to lead the Association forward as it makes further progress toward its key goals.”
“Connie has been an ideal leader of ISDA. I have enjoyed working with him and I look forward to his continued contributions,” said Mr Pickel. “ISDA faces a number of opportunities and challenges ahead. Our focus is on addressing these issues and fulfilling our mandate by supporting derivatives markets across asset classes, geographies, and trading and clearing environments. To do this, we will continue to reach out to all types of market participants around the world.”
Prior to joining ISDA, Mr Pickel was assistant general counsel in the Legal Department of Amerada Hess Corporation, an international oil and gas company, from 1991 to 1997. He has also worked at the law firm of Cravath, Swaine & Moore in New York and London, where he represented ISDA in a variety of matters. Mr Pickel graduated from Williams College and received his law degree from New York University.
About ISDA
Since 1985, ISDA has worked to make the global over-the-counter (OTC) derivatives markets safer and more efficient. Today, ISDA is one of the world’s largest global financial trade associations, with over 825 member institutions from 57 countries on six continents. These members include a broad range of OTC derivatives market participants: global, international and regional banks, asset managers, energy and commodities firms, government and supranational entities, insurers and diversified financial institutions, corporations, law firms, exchanges, clearinghouses and other service providers. Information about ISDA and its activities is available on the Association's web site: www.isda.org.
ISDA® is a registered trademark of the International Swaps and Derivatives Association, Inc.
-------------------------------------
Celent Says U.S. Triparty Repo Market Has Decreased To $1.6 Bln Because Of Financial Crisis, Weaker Global Economy
According to a new report from financial research firm Celent, the U.S. triparty repo market has decreased from a high of $2.8 billion on average daily collateral value in May 2008 to $1.6 billion in August 2011. This is due to the impact of the financial crisis and the weaker global economy on the repo markets, according to Celent.
Also noted in the report is that the reforms process has become significantly more complex than it was expected to be. Therefore, changes such as three-way trade confirmation and reduction in credit exposures would be delayed, with the latter expected to see fruition in 2012 at the earliest. Also, the measures would impose costs of implementation on the cash investors as well, which might deter participation in the market.
See the full report - Triparty Repo in the U.S.: Well Begun But Far from Done - here.
-- Christine Nielsen
Lead Stories
Top European Central Bank Official Lorenzo Bini-Smaghi To Resign
http://jlne.ws/vej71H
ECB policymakers reject bigger crisis role for bank
By Gilbert Kreijger and Paul Carrel, Reuters
The European Central Bank cannot intervene much more aggressively to tackle the euro zone debt crisis, three ECB policymakers from the bloc's core said on Thursday, pressing governments to act instead.
http://jlne.ws/tUmL0d
CFTC Commissioner Jill E. Sommers to Act as Senior Commissioner for the Agency For Matters Relating to MF Global, Inc. Bankruptcy
http://jlne.ws/vAfry1
**CN: As reported by JLN earlier this week.
Bernanke: Small Businesses Important To Economic Recovery
By Luca Di Leo and Jamila Trindle, WSJ.com
Small businesses are important to the economic recovery and to U.S. global competitiveness, Federal Reserve Chairman Ben Bernanke said Wednesday in welcoming remarks at a Fed conference on small business entrepreneurship during the recovery.
http://jlne.ws/v5NqrS
Bernanke urges banks to help small businesses
AP via Yahoo! News
Federal Reserve Chairman Ben Bernanke says small businesses are struggling to get loans more than two years after the recession ended. He says banks could help them by easing overly tight lending standards.
http://jlne.ws/upWv9X
FRB: Speech--Bernanke, Town Hall Meeting Remarks--November 10, 2011
It is an honor and a privilege for me to join the men and women of Fort Bliss today. As someone who puts a high value on public service, I want to thank the soldiers here for their service to our country and for helping to make the world a safer place. I admire your professionalism and dedication. I want to thank your family members as well; servicemembers could not achieve what they do without the support and sacrifices of their families. You should all be proud of what you have accomplished and what you stand for.
http://jlne.ws/tvnriy
Glitch from S&P caused France rating rumor
By Adam Button, ForexLive
S&P is saying France remains AAA with a stable outlook. It says some kind of glitch caused a change on its website that sparked the rumors. It says it’s investigating what happened.
http://jlne.ws/uTuEV1
Berlusconi wins vote, but will resign
UPI
ROME, Nov. 8 (UPI) -- Italian Prime Minister Silvio Berlusconi, who narrowly won a key budget vote Tuesday, will step down once economic reforms pass, Italy's president said.
http://jlne.ws/stFXBV
Lucas Papademos, Former European Central Bank Official, Named New Greek Prime Minister
Huffington Post
Senior banker Lucas Papademos was named Thursday to be the new prime minister of an interim Greek unity government that seeks to cement a new European debt deal and stave off national bankruptcy.
http://jlne.ws/uxehvO
Greek Prime Minister George Papandreou has agreed to step down
Schaeffers Research
U.S. stock futures are pointed south this morning. Despite last week's unexpected dose of promising domestic data, coming in the form of a drop in unemployment, investors seem unable to take their cues from anywhere but across the pond...( Read More )
http://jlne.ws/tBwdqs
Headcount continues to rise at global banks
Richard Partington, Financial News
Many banks said in the second-quarter results that they planned to rein in costs and cut back on the number of staff, due to an increasing regulatory burden and plummeting trading volumes amid economic uncertainty. However, there were almost 15,000 more staff employed by banks at the end of the third quarter than three months earlier, according to data compiled by Financial News on banks’ recently published earnings statements.
http://jlne.ws/sIdWQv
Alabama county files biggest municipal bankruptcy
By Melinda Dickinson, Reuters
Alabama's Jefferson County filed for bankruptcy court protection on Wednesday in the biggest municipal bankruptcy in U.S. history.
http://jlne.ws/sQHm1d
Jefferson County Bankruptcy Filing May Rekindle Municipal Credit Concerns
By Michael McDonald, Bloomberg
The bankruptcy of Jefferson County, Alabama, may keep municipal yields that are already high relative to U.S. Treasuries elevated as some investors flee tax- exempt debt, according to Michael Schroeder, president and chief investment officer of Wasmer, Schroeder & Co.
http://jlne.ws/u3xanP
Is changing a leader bad for the bond market?
Sebastian Walsh, Financial News
Greece has cast off George Papandreou. Italy is about to send Silvio Berlusconi packing. The latest changes at the top of eurozone governments, which have been incapable of managing their debt, may prove to be no bad thing. Historically, however, there is a notable - albeit unscientific - correlation between the countries currently facing the wrath of the bond market and the average term-length enjoyed by their political leaders in the modern era.
http://jlne.ws/sZ3sXj
Did MF Global "Embezzle" $633 Million Of Other People's Money?
Forbes
I'll tell you why I ask this probing question. I received an email this morning from a seemingly enlightened fellow quite conversant with the foibles of the futures trading business. He makes a quite convincing case for the ease by which MF Global might have grasped onto customers' cash to meet its own margin calls on trades going south or just to resolve trading it was doing in its own name. I ...
http://jlne.ws/uJ8plp
MF Clients to Get Cash at CME Once Exchange Verifies Transfers
BusinessWeek
Clients of MF Global Holdings Ltd., the futures broker that filed for bankruptcy protection last week, can access their frozen cash collateral at CME Group Inc. after the exchange verifies all traders' accounts have been transferred to new brokers.
http://jlne.ws/roI7SS
MF Global Creditors to Form Committee, Seek Recoveries
BusinessWeek
MF Global Holdings Ltd. creditors looking to recover from the eighth largest bankruptcy in U.S. history may sue the company's advisers, search for assets overseas and seek information from a probe into the commingling of customer accounts at the brokerage, a bankruptcy lawyer said.
http://jlne.ws/urqp81
Corzine Forgot Lessons of Long-Term Capital: Roger Lowenstein
BusinessWeek
Thirteen years ago, when the hedge fund Long-Term Capital Management was desperately negotiating with Wall Street banks for a bailout, Jon Corzine, the chief executive officer of Goldman Sachs Group Inc., called John Meriwether, LTCM's founder, and read him the riot act. Wall Street would invest, Corzine said, but "JM" would have to accept more controls, including strict supervision over his ...
http://jlne.ws/uWou5h
Chicago's Harris Bank plays role in MF Global mess
Reuters via Yahoo! News
(Reuters) - The hunt for the missing $600 million in customer money at MF Global Holdings Ltd may begin with Harris Bank, a Chicago-based lender that often holds client money for many large futures brokerage firms.
http://jlne.ws/vz3lCj
Malaysian Man Gets 10 Years in Federal Reserve Hacking Case
BusinessWeek
A Malaysian man who pleaded guilty to conducting a credit-card scheme and who was accused of hacking the Federal Reserve's computers got a 10-year prison sentence.
http://jlne.ws/tVWLZx
Economist sees restrained US recovery in 2012
Deseret News
A Federal Reserve economist believes the U.S. will continue to struggle to recover from the Great Recession in the coming year.
http://jlne.ws/vQ3Rzo
Unloved Treasury Notes Becoming New Favorite in Fed's Twist
BusinessWeek
The U.S. Federal Reserve is finding no shortage of demand for the short-term bonds it's selling to focus on longer-maturity debt, a sign that the strength in the economy seen in October may prove fleeting.
http://jlne.ws/sJTmNr
A Deep Dive Into The Fed's Latest Survey Of Loan Officers
Business Insider
Yesterday, the Federal Reserve released the senior loan officer survey. This is a very important document as it provides extensive detail about the condition of US lending.
http://jlne.ws/u8TwK9
Fannie Mae Seeks $7.8 Billion From Treasury Department After Posting Loss
Bloomberg
Fannie Mae, the mortgage-finance company operating under U.S. conservatorship, will seek $7.8 billion in Treasury Department aid to balance its books after reporting a third-quarter loss.
http://jlne.ws/vF1R6j
Treasury plans private sales of bank warrants rather than public auctions for smaller banks
Washington Post
WASHINGTON - The government plans to begin selling some warrants it received from bailed-out companies to financial institutions rather than offering the warrants in public auctions. The sales are part of the government's effort to recoup the costs of the $700 billion financial bailout. The Treasury Department said Tuesday that it will hold private sales to institutional buyers of warrants in ...
http://jlne.ws/uCnZLH
U.S. savings bonds to go paperless next year
Erie Times-News
Making their final appearance in Christmas stockings this season paper U.S. savings bonds.
http://jlne.ws/vHEZaL
U.S. recorded $1.3 trillion deficit in 2011
Los Angeles Times
The federal government recorded a $1.3-trillion budget deficit in the 2011 fiscal year, roughly even with the previous year's shortfall.
http://jlne.ws/urGhUi
Pimco: Europe, US Risk High Inflation in Medium Term
CNBC
European and U.S. inflation will rise in the medium- to long-term, according to Berdibek Ahmedov, manager for European and UK real return products at Pacific Investment Management Company (Pimco).
http://jlne.ws/s8fNnn
PIMCO's Bill Gross November Letter: Pennies from Heaven
International Business Times
The latest monthly missive from Bill Gross:Pennies from HeavenArticle IntroductionOnce interest rates inch close to zero and discounted future cash flows are elevated in price, it's difficult to generate much more return if economic growth doesn't follow. Equity markets should be dominated.
http://jlne.ws/uQThsJ
Paul Volcker says Volcker rule too complicated
Reuters via Yahoo! News
SINGAPORE (Reuters) - The Volcker rule is too long and complicated and financial lobbyists are to blame, said the man who gave his name to the new regulation on bank trading.
http://jlne.ws/seqxyq
MiFID Conference: No Area Should Remain Unregulated
More Than 100 Financial Experts Discussed The Developments In And Impacts Of The EU Directive At The Fifth Boerse Stuttgart MiFID Conference
Press Release
On Tuesday, 8 November 2011, Boerse Stuttgart hosted a conference on the EU Markets in Financial Instruments Directive (MiFID). This was the fifth such meeting in Stuttgart of representatives from supervisory authorities and banks as well as financial advisers and academics. More than 100 experts discussed the current state of affairs and the implementation of the Directive in banks, stock exchanges and authorities, focusing on a number of topics, including the European Commission’s proposals for revision of the Directive.
http://jlne.ws/uXKNdZ
Events
International Banking Conference 2011
November 10 - November 11, 2011
Banking conference with a global focus
http://jlne.ws/ow1CVU
Financial Issues And The Economy
November 13, 2011
Discussion of economic issues in Connecticut
http://jlne.ws/tp3UCB
Fourteenth Annual International Banking Conference
November 29 - December 1, 2011
Federal Reserve Bank of Chicago holds 14th International Banking Conference
http://jlne.ws/nTDrKO
7th Annual FIA Asia Derivatives Conference
November 29 - December 1, 2011
FIA looks at the futures and options industry in Asia
http://jlne.ws/vkOpsA
Exchanges, Clearing Houses & MTFs
NYSE chief confident over D Borse merger
FT Finance News (ext) via Yahoo! Finance
Duncan Niederauer, chief executive of NYSE Euronext, expressed confidence in the proposed tie-up with Deutsche Borse, dismissing some regulators' concerns about vertical integration as "idealistic". ...
http://jlne.ws/uosKj6
U.S. Clearing Houses Announce MF Global Bulk Transferee Confirmation Service
PR Newswire
CHICAGO, Nov. 4, 2011 /PRNewswire/ -- As part of the bulk transfer process for MF Global customer accounts and collateral held at U.S. derivatives clearinghouses, CME Clearing, ICE Clear US, The Clearing Corporation, KCBOT Clearing Corp., MGEX, NYSE Liffe US and The Options Clearing...
http://jlne.ws/rRl0MM
New York Portfolio Clearing Statement on Transfer of MF Global Customer Accounts
PR Newswire
NEW YORK, Nov. 4, 2011 /PRNewswire/ -- Today, New York Portfolio Clearing (NYPC) successfully completed the transfer of all of its MF Global customer accounts and specified amounts of associated NYPC-held collateral to other qualified NYPC clearing firms according to the authorization and...
http://jlne.ws/spaxDM
Firms & Banks
U.S. Bancorp Sued by Pension Fund Over Investor Losses on CDOs
American Banker
U.S. Bancorp was sued by an Oklahoma police pension fund over allegations investors in mortgage bonds were hurt by the bank failing to ensure that securities were backed by loans.
http://jlne.ws/s9YQfw
Bank of New York, MF Global, Bank Capital, Silver: Compliance
Bloomberg
Nov. 7 (Bloomberg)-- Bank of New York Mellon Corp. (BK) , the world's largest custody bank, is in early stage talks with federal prosecutors to settle accusations the bank overcharged customers for foreign-exchange trading, according to a person briefed on the discussions.
http://jlne.ws/sZFxMN
Berkshire Hathaway on Cusp of Oversight by Fed Under Risk Council Criteria
Bloomberg
Berkshire had $29.7 billion in credit-default swaps linked to its debt as of Oct. 28, putting it just under a $30 billion threshold proposed last month by the Financial Stability Oversight Council.
http://jlne.ws/tayEj7
Citigroup, BNY, News Corp., Union Bank, Goldman in Court News
Bloomberg
Citigroup Inc. (C) was accused of fraud by Moneygram Payment Systems Inc., the electronic cash-transfer business, in a lawsuit seeking to recover an alleged $140 million in collateralized debt obligation losses.
http://jlne.ws/sdGZoP
JPMorgan Sued by Louisiana Pension Over Treasury's Cuba, Iran Sanctions
Bloomberg
JPMorgan Chase & Co. (JPM) was sued by Louisiana 's pension fund for police, which said the bank's $88.3 million settlement with the U.S. Treasury Department stemmed from a breach of fiduciary duty by its directors.
http://jlne.ws/vDyasi
PIMCO Boosts Portfolio Management Analytics Team With Three New Hires
Marketwire Finance Press Releases via Yahoo! Finance
LONDON-- - PIMCO, a leading global investment management firm, has expanded its portfolio management analytics team with the appointment of three new investment professionals in its New York and London ...
http://jlne.ws/u8YUGK
Morgan Stanley accused over mortgage bonds
FT Finance News (ext) via Yahoo! Finance
Morgan Stanley (AMEX:MWD) revealed on Monday it is being targeted over alleged mortgage mis-selling by the same law firm that brokered an $8.5bn settlement with Bank of America (NYSE:BAC - News).
http://jlne.ws/s0X4Ng
State Street Renews Mandate with PIMCO for $1.3 Trillion in Assets
Business Wire
BOSTON--(BUSINESS WIRE)--State Street Corporation (NYSE: STT), one of the world's leading providers of financial services to institutional investors, announced today that it has been retained by Pacific Investment Management Co. (PIMCO) to provide an array of investment manager operations outsourcing services for $1.3 trillion in assets. This represents a renewal of one of the first and largest ...
http://jlne.ws/snXkiC
UBS to shut U.S. asset-backed securities unit: report
Reuters via Yahoo! News
UBS is shutting its asset-backed securities business in the United States, Swiss newspaper HandelsZeitung reported on Thursday without citing sources.
http://jlne.ws/rKvyrI
Citi, JPMorgan To Feel Biggest Bite Of Basel Capital Surcharges
Forbes
While the regulation seeks to ensure that bigger banks are better protected from failing, there is also a fear of banks hiding data about their actual risk levels in order to avoid higher surcharges.
http://jlne.ws/uhnQU4
Crédit Agricole Profit Hit by Greece
BY NOEMIE BISSERBE - WSJ
PARIS—Crédit Agricole SA on Thursday reported a 65% drop in third-quarter net profit, hit by a heavier-than-expected write-down on its Greek government bonds and further losses at its troubled Emporiki Bank of Greece unit.
http://jlne.ws/w4QCpS
HSBC Sees Bad-Debt Plague Rear Its Ugly Head Again
Dow Jones
Bad debts at HSBC Holdings PLC (HBC) soared to their highest quarterly level since 2009 as cash-strapped U.S. homeowners stopped making mortgage payments and customers from Brazil to Hong Kong felt the pinch from a weakening global economy.
http://jlne.ws/tq1R4O
Goldman Sachs Is Said to Raise $1.1 Billion From Sale of Its ICBC Holding
Bloomberg
Goldman Sachs sold 1.75 billion shares at HK$4.88 each, the people said, asking not to be identified because the details are still private. That is 6 percent below ICBC's closing price in Hong Kong.
http://jlne.ws/sz4lZS
Judge attacks SEC’s Citi settlement
By Kara Scannell in New York, Financial Times
A US judge has attacked Securities and Exchange Commission enforcement policies in a hearing which casts doubt on whether he will approve a settlement between the securities regulator and Citigroup over the sale of mortgage-related products.
http://jlne.ws/t25Ejb
Regulators
Federal Reserve Bank of Philadelphia President Charles Plosser said "Concerns the economy ...
Guru Focus
By FOX Business. Federal Reserve Bank of Philadelphia President Charles Plosser spoke with FOX Business Network's (FBN) Peter Barnes about the United States economy and whether the Federal Reserve will take further action to aid in the recovery. Plosser said "concerns we had in July, August, and September that the economy was at risk of falling off a cliff have pretty much dissipated" and thus ...
http://jlne.ws/sHpFka
Rosengren Says Federal Reserve Should Act to Bring Down Unemployment Rate
Bloomberg
Federal Reserve Bank of Boston President Eric Rosengren said the central bank should act to bring down "stubbornly, and unacceptably, high" joblessness that's been stuck near 9 percent or above since April 2009.
http://jlne.ws/uCKOMf
Kocherlakota Says Fed Should Make Public Contingency Plan
BusinessWeek
Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said the U.S. central bank should develop and make public a contingency plan that would explain how it would react to developments in the economy.
http://jlne.ws/uWcO2P
Fed's Plosser: No need to dissent at Nov meeting
Market Watch
Philadelphia Federal Reserve Bank President Charles Plosser said Tuesday that he decided not to dissent from last week's policy statement because he supported the decision and didn't want to "re-litigate" past statements. Plosser voted against the Fed's August and September policy moves, one of three Fed regional banks presidents to do so, a rare high number for the ...
http://jlne.ws/sdsarJ
Video: Sumner Says Nominal GDP Target Can Save the Recovery
Wall Street Journal Blogs
Bentley University economics professor Scott Sumner says the Federal Reserve ought to be far more aggressive in stimulating the U.S. economy and explains how a nominal GDP target would be a better way to run monetary policy.
http://jlne.ws/sBHRbG
OTC
Euroclear Bank Arranges New Greek Government Debt Swap
Press Release
Euroclear Bank, which recently orchestrated the first swap of Greek government bonds between a number of consenting primary dealers in such securities, will run a second swap in such debt instruments next week.
http://jlne.ws/sRzS4y
Global News
Australian Consumer Confidence Jumped in November on Rate Cut
BusinessWeek
Australian consumer confidence jumped in November as the central bank's first interest-rate cut in 31 months lowered payments for mortgage holders, a private survey showed.
http://jlne.ws/rvhj0S
Swiss Banks, EU Ratings, Fund Reform, U.K. Tax, ICE: Compliance
Bloomberg
Patrick Odier, chairman of the Swiss Bankers Association, said an agreement between Switzerland and the U.S. to resolve a dispute over tax evasion by Americans with Swiss banks should be reached "as soon as possible".
http://jlne.ws/sKIz7m
Italian Bond Rates Rise to New Levels
New York Times
Bond rates are being driven to levels that earlier forced Greece, Ireland and Portugal to seek bailouts.
http://jlne.ws/ub1cDE
Premature for China to Reverse Monetary Policy: Experts
CNBC
China's benign inflation figures for October suggest that Beijing's measures to tame rising prices are working, but don't expect policymakers to reverse their monetary policy stance anytime soon, economists told CNBC on Wednesday
http://jlne.ws/sbweOk
Monetary Policy and Risk-Premium Shocks in Hungary: Results from a Large Bayesian VAR
IMF
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy.
http://jlne.ws/sPBx3J
Disclaimer: The John Lothian, Environmental Markets, JLN Metals, JLN Managed Futures, JLN Interest Rates, JLN Options and JLN FX newsletters and blogs and MarketsWiki are products of John J. Lothian & Company, Inc. The opinions expressed in these publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers.
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