Moody’s Lowers Ratings of Four U.S. Banks After Review

Moody’s Investors Service cut its ratings on four of the biggest U.S. banks after deciding the government would be less likely to help them repay creditors in a crisis. Morgan Stanley (MS), Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM) andBank of New York Mellon Corp. had their senior holding company ratings lowered one level yesterday after […]

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Paper Assets No Safer Today than in 2008

“In 2008 in order to justify the taxpayer-funded Wall Street bailout, the world was pitched a three-page term sheet explaining how ATMs would go dark and McDonalds wouldn’t be able to pay its employees. The premise: either pay for financier blunders, or else. Strong-arm fascism was employed, more or less, while brokers quietly took to […]

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Paper Assets No Safer Today than in 2008

“In 2008 in order to justify the taxpayer-funded Wall Street bailout, the world was pitched a three-page term sheet explaining how ATMs would go dark and McDonalds wouldn’t be able to pay its employees. The premise: either pay for financier blunders, or else. Strong-arm fascism was employed, more or less, while brokers quietly took to […]

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How the Bank Lobby Loosened U.S. Reins on Derivatives

“One by one, Gary Gensler’s supporters deserted him. Now the chief U.S. regulator of derivatives was being summoned by Treasury Secretary Jacob J. Lew to explain why he refused to compromise. Banks and lawmakers, as well as financial regulators from around the world, had besieged Lew with complaints about Gensler’s campaign to impose U.S. rules […]

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Fed Finds 18 Large Banks Weak in at Least One Capital Area

“Five years after one of the most costly financial crises in U.S. history, the 18 largest banks still fall short in at least one of five areas critical to risk management and capital planning, the Federal Reserve said. While many banking companies have improved capital planning techniques and raised capital levels, “there is still considerable […]

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Fake Chinese Trade Data Pushes Fake US Futures Higher

“Overnight, just as Japan was threatening to roll risk over even more (at the end of the day, or rather night, it did, sliding over 200 point bringing the two day total plunge to nearly 800 points) China reported trade numberswhich were “better than expected” even though the net GDP contribution from the overall surplus was […]

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Wall Street's big SAC Capital problem

“The Wall Street firms that do business with SAC Capital are right to be privately worried about possible legal contamination from the criminal indictment against the hedge fund. Publicly, Wall Street is standing behind SAC Capital. It’s “business as usual,”according to reports. Gary Cohn of Goldman Sachs recently praised SAC as “a great counter party” in an interview […]

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Swaps Probe Finds Banks Rigged Rate at Expense of Retirees

“U.S. investigators uncovered evidence that banks reaped millions of dollars in trading profits at the expense of companies and pension funds by manipulating a benchmark for interest-rate derivatives. Recorded telephone calls and e-mails reviewed by the Commodity Futures Trading Commission show that traders at Wall Street banks instructed ICAP Plc brokers in Jersey City, New […]

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