The Financial Times – Lex: EU banking union: taxing question For now, a pressing and tangible aspect of banking union is agreement on depositor protection. The EU already forces sovereigns to cover customer deposits at any one bank up to €100,000 via 40 schemes across the bloc’s 27 member states. The trouble is that Europe’s… Continue reading One Reason A TARP-Like Bailout Cannot Happen In Europe
Zero Hedge (Blog) – Shocking Details Of Barclays Epic Lie-bor Fraud: “Duuuude…Whats Up With Ur Guys 34.5 3m Fix…Tell Him To Get It Up!” From the FSA’ breakdown of Barclays traders caught in the act of manipulation: On Friday, 10 March 2006, two US dollar Derivatives Traders made email requests for a low three month… Continue reading Fixing LIBOR For The Price Of A Bottle Of Champagne
Pimco – What’s In A Name? What global investors, fixated on historical cyclical trends as opposed to secular delevering dynamics fail to appreciate is that economies and their financial markets historically have taken several decades as opposed to several years to renormalize once the fatal grip of too much debt wreaks havoc on the assumed… Continue reading Bill Gross Speaks
<Click on chart for larger image> MarketBeat (WSJ Blog) – Here’s How the Death Cross Is Bullish for Stocks It sounds mighty counterintuitive, but when the ominously named technical pattern forms in clusters, it tends to be bullish for the broader stock market. Charts register a death cross when both short- and long-term trend lines… Continue reading Forget What You Learned About The Death Cross Indicator
The New York Times – JPMorgan Trading Loss May Reach $9 Billion Losses on JPMorgan Chase’s bungled trade could total as much as $9 billion, far exceeding earlier public estimates, according to people who have been briefed on the situation. When Jamie Dimon, the bank’s chief executive, announced in May that the bank had lost… Continue reading J.P. Morgan Losses Could Reach $9 Billion
Conference Call Presentation/Charts of the Week Audio Topics Covered This Week Include: What The Fed Thinks The U.S. Economy – Not Very Good Too Much Inflation For QE3? Stock Market Corrections Since 2009 Where Are The Bears? Everyone Hates Bonds! The Effect Of Twist Is LIBOR Now Li-bid? Europe
The Wall Street Journal – European Disunion Faces Endgame One test of whether proposals for European banking, fiscal and political union circulated ahead of Thursday’s summit will calm the crisis is to ask a simple question: Do the proposals make it more likely that France raises its retirement age to 67? It was only recently… Continue reading Europe
<Click on chart for larger image> FT Alphaville (FT Blog) – Unwind? What unwind? – Part 1 FT Alphaville had a serious case of the F5 on Tuesday at 10pm London time, for it was at that hour that last week’s DTCC credit derivatives data was released to the masses. Here we would be able… Continue reading J.P. Morgan’s Big Unwind?
<Click on chart for larger image> Bloomberg.com – Heat Wave Wilts Corn as Supplies Diminish Most Since 1996 Futures surged 25 percent since reaching a 20-month low June 15, and Morgan Stanley expects prices to advance another 10 percent to $7 a bushel in two months if the drought persists. The rally is boosting global… Continue reading Corn
<Click on chart for larger image> Bloomberg.com – Biggest U.S. Banks Curb Loans as Regional Firms Fill Gap The biggest U.S. banks are extending less credit amid a faltering economic recovery as regional lenders step in to fill the gap. Total loans at the four largest U.S. banks — JPMorgan Chase & Co. (JPM), Bank… Continue reading Bank Loans
The Financial Times – Barclays poised to settle Libor probe Barclays is poised to announce a deal with US and UK regulators to settle a probe into allegations that its employees sought to manipulate the London interbank lending rate that is the basis of more than $350tn ongoing contracts worldwide. The settlement, which may be… Continue reading More On LIBOR