The Economist – Buttonwood: The golden rules of banking They make the rules, and get the gold THE crisis has taught people a lot about the banking industry and the thought processes of its leaders. These lessons can be distilled into four golden rules. 1. The laws of supply and demand do not apply. 2.… Continue reading Banking
MarketBeat (WSJ Blog) – Think the Fed Doesn’t Sway Stock Prices? Check This Study As investors prep for the release of the FOMC minutes, expected later today, economists at the NY Fed unveiled their latest analysis on the “Pre-FOMC announcement drift.” In laymen’s terms, stocks typically do pretty well in the days leading up to… Continue reading The Pre-FOMC Announcement Drift
The Wall Street Journal – Fed Weighs More Stimulus Federal Reserve officials sent new signals they are seriously considering more actions to bolster the economic recovery but disappointed many investors by not indicating they are committed to taking action. A few Fed officials were ready to move aggressively when the Fed met in June and… Continue reading The Federal Reserve Minutes
Real Time Economics (WSJ Blog) – ‘Natural’ Jobless Rate Is Key to Fed Stimulus Debate Most economists, as well as central bankers, believe that with the current unemployment rate at 8.2%, there’s a pretty wide gap between actual jobless levels and the natural rate. Currently, the official Federal Open Market Committee view is that the… Continue reading The FOMC Ponders The Natural Jobless Rate
The Wall Street Journal – Fed to Document Libor Action A Federal Reserve official said Wednesday the central bank will release documents showing the Federal Reserve Bank of New York acted swiftly during the financial crisis to identify problems with a key interest rate and suggest changes. “Documents to be released Friday will show the… Continue reading The Federal Reserve To Defend Itself In LIBOR Probe
Bloomberg.com – EU’s New Crisis Model Gives Spain More Time for Cuts European leaders are testing the latest version of their debt crisis strategy in Spain, granting Prime Minister Mariano Rajoy more time to reduce the budget deficit in exchange for deeper spending cuts. Rajoy yesterday announced 65 billion euros ($80 billion) of austerity measures… Continue reading Spain Trades Spending Cuts For Time
USA Today – Criminal probe leads Labor Dept. to change data releases Federal criminal and civil investigators looked into possible leaks of economic data that the U.S. government provides early to news organizations, according to a report released Tuesday by the Labor Department. The report says Labor officials raised concerns about self-identified news organizations that… Continue reading The Labor Department Attempts To Plug Payroll Leaks
The Wall Street Journal – Clock Is Ticking on Crisis Charges Time is running out for U.S. securities regulators to file civil charges for alleged wrongdoing during the financial crisis. Federal laws under which the Securities and Exchange Commission usually goes after alleged fraud and other misdeeds have a five-year statute of limitations. The five-year… Continue reading Statute Of Limitations In Financial Crisis Cases
h/t The Big Picture Blog
Charts of the Week Topics Covered This Week Include: Earnings Expectations J.P. Morgan’s Position Going Into Its Quarterly Call A Look At Mortgages Election Update The Falling Euro Spain Measuring Policy Uncertainty Measuring Policy Uncertainty – 2 Employment Updated Look At The S&P 500 vs 10-Year TIPS Breakevens Iran’s Crude Oil Production Daily Gas Prices… Continue reading Charts of the Week
Bloomberg.com – JPMorgan Silence on Risk Model Spurs Calls for Disclosure JPMorgan Chase & Co. (JPM)’s multibillion- dollar trading loss exposed an industry practice that U.S. regulators are now likely to clamp down on: Banks keep investors in the dark about how they calculate trading risks. The U.S. Securities and Exchange Commission is probing JPMorgan’s… Continue reading J.P. Morgan’s Position Going Into Its Quarterly Call