Market Minute: Big Banks Face Stricter Rules; BlackBerry Weighs Options

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New rules take aim at "too big to fail" banks, and BlackBerry fights to stay alive. Those and more are what's making business news Wednesday

The major averages posted a fourth straight gain yesterday. The Dow industrials (^DJI) rose 75 points, the S&P 500 (^GPSC) gained 11 and the Nasdaq (^IXIC) rose 19. The S&P is back within one percent of its all-time high, and the Nasdaq closed at its highest level since November of 2000.

jpmorgan chase citigroup morgan stanley big banks too big too fail goldman sachs
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Federal regulators are proposing stricter rules on the nation's largest banks to prevent the taxpayer from having to step in with another huge bailout. These banks would be required to double the amount of capital they hold in reserve. JPMorgan Chase (JPM), Morgan Stanley (MS), Citigroup (C) and Goldman Sachs (GS) would feel the biggest effects.

Separately, regulators have designated American International Group (AIG) and General Electric's (GE) GE Capital as the first nonbank financial firms to face greater oversight under the Dodd-Frank financial law.

BlackBerry's CEO, Thorsten Heins, told shareholders that he's open to partnerships and alliances, but didn't elaborate. However, Heins said management needs more time to complete its turnaround. Last month, BlackBerry (BBRY) disappointed investors by posting another loss because of weak demand for its new smartphone. The Canadian company also made official its name change -- to BlackBerry from Research in Motion.

Apple (AAPL) has dropped a lawsuit against Amazon.com (AMZN) over the rights to the name "app store." Apple had claimed that Amazon had infringed on its trademark. Amazon countered by saying the app store name had become generic.

Walt Disney (DIS) might write down $100 million or more on "The Lone Ranger" movie. The Johnny Depp film had a disappointing open and is now expected to fall far short of its production costs.

Tribune Co. says it plans to spin off its struggling newspaper unit into a separate company, to focus on its television business. It owns the Los Angeles Times, Chicago Tribune and six other daily papers.

And keep an eye on what happens right after 2 p.m. Eastern time. That's when the Federal Reserve releases minutes of its policy meeting from last month.

-Produced by Drew Trachtenberg


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9 Comments

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RonRuthNik

Put the big Banksters heads on pikes outside the main branch doors, and our worries about bailing them out again will end very quickly.

July 10 2013 at 12:01 PM Report abuse +3 rate up rate down Reply
meenstreek

The taxpayers didn't bailout the banks - the Gov. did using taxpayers dollars without any "hey we're going to bail these folks out using your dough". And if you think dodd-frank are qualified to save the world in regards to finance/your a buffoon/what actually qualifies them to make such decisions? I hear people complain about how hard it is to borrow money in this day and age/this is because the banks no longer give money away. The real question here should be "who is going to save us (the American taxpayer from Big Gov.". Wait until the fans find out that the free-healthcare will only cost them their tax returns/refunds.

July 10 2013 at 11:20 AM Report abuse rate up rate down Reply
RichLDNRD

How many times are the banks going to be allowed to steal tax payer's money? We the people bailed them out and we the people continue to suffer while executives get bonuses and raises. We the people haven't seen a raise in decades... We the people are getting screwed and we the people are to apathetic to even think about what to do about it.

July 10 2013 at 10:31 AM Report abuse +5 rate up rate down Reply
mily469

after they already put a record trillion dollars in reserve after the collapse a few years ago the banksters went and changed the law allowing them to receive interest on the stashed funds. now they want to double the stash. bust up the too big to manage/fail.

July 10 2013 at 10:29 AM Report abuse +3 rate up rate down Reply
dgosbee

The big banks will just use the increased reserve as another excuse to not make loans to small business. Onece again, it will be the small business that takes it in the A$$.

July 10 2013 at 9:53 AM Report abuse +2 rate up rate down Reply
hsenpfeffer

The economy will not improve till thousands of hedge fund managers, commodities specialists, mortgage brokers, investment advisers and other assorted investment salestrash are facing long terms in the federal prison system in secure facilities.

July 10 2013 at 9:50 AM Report abuse +3 rate up rate down Reply
radsenior

Dodd-Frank must be strictly enforced. This is what TEA-Republicans are working for.( http://www.huffingtonpost.com/2013/07/08/gop-wall-street-bill_n_3542999.html ) The next elections will make or break our nation if you stay at home and do nothing. The 2010 Frank-Dodd banking act has placed restrictions Big Banking does not want. TEA-Republicans have this bill in their sights for elimination, de-funding, side-tracking or abridging in every way they can. If you want to bailout more banks and stagnate the economy, go ahead and vote for TEA-Republicans running for office in your state. All and every financial instrument must be regulated, no matter if off-shore or not! Big time lawyers and accountants in collusion with big time lobbyist have amassed huge sums of money to fight or input into unrelated bills wording to circumvent the wishes of the nation. A good example is Gun shot data research. It is tantamount-ly important, for those in office, to read carefully every word of every bill that gets past the House and Senate, and to the president for signing.

July 10 2013 at 9:44 AM Report abuse +4 rate up rate down Reply
mekakes

It is about time the banks get reigned in.

They have enjoyed using our money at almost zero interests but has anyone's credit card barrowing rate gone down? Have they allowed homeowners to re-finance their ballon mortgages? No. They just use our money on phony derivatives -- glorified gambling that protects no one and pays people big bucks when others fail. The British empire collapsed when finance guys took over and it was more profitable to sink their ships to collect insurance, rather than use them for actual trade.

July 10 2013 at 9:37 AM Report abuse +3 rate up rate down Reply
mmiller99

This is another federal banking regulator scam. The biggest banks have ratios of exposure to toxic derivatives-to-stated assets of something like 40 to 1.

Doubling reserves doesn't matter, and they know it.

July 10 2013 at 9:20 AM Report abuse +2 rate up rate down Reply