derivatives

The Real Impact of JPMorgan Chase Halting Its Share Buybacks

As a result of the bank's recent $2 billion trading loss, JPMorgan Chase announced it would suspend its $15 billion share-buyback program. Here's a primer on the damaging trades, what the buyback program was about, and what its cancellation means for investors.

Another Ex-Goldman Banker Confesses: Firm Is 'Toxic'

The fallout is still evolving from Greg Smith's public resignation from Goldman Sachs, a firm he called "toxic and destructive," where clients were mocked and their interests sidelined. In a DailyFinance exclusive, we have a response from another ex-employee who backs his claims -- and defends her former colleagues.

NYSE Merger with Deutsche Boerse Blocked by EU

The EU has blocked the Deutsche Boerse's planned merger with NYSE Euronext, a deal that would have created the world's largest financial exchange operator, because the venture would have had a near-monopoly in the trading of European derivatives.

Does It Matter That a German Exchange May Control the NYSE?

The fabled New York Stock Exchange isn't what it used to be. Today's NYSE Euronext has lost a huge volume of trading to upstart computerized exchanges in recent years, and scandals have tarnished its luster. Now, Germany's Deutsche Boerse wants to buy control of it. I say: "Sell!"

At Little Signature Bank, Back to Basics Is Paying Off Big

The pint-size Manhattan bank's market cap of $2 billion is dwarfed by JPMorgan's $161.5 billion and BofA's $126.4 billion. Still, Signature has done far better for investors this year. By steering clear of risky derivatives and sticking with basic banking, Signature is thriving.

Would Rating Downgrades Clip Bank Profits?

Moody's is reviewing 10 large regional banks for possible downgrades because it thinks financial reform means total government support is now less likely. That's setting off a debate about whether those banks will actually take a hit to profitability.

A Wall Street Lawyer's Take on Financial Reform

Winthrop Brown, a Washington lawyer who lobbies on behalf of financial services firms, says the new regulations should get fairly high marks from Wall Street -- and from Main Street. But will they prevent another economic meltdown?

The Biggest Winners in Financial Reform

The Dodd-Frank financial regulation reform bill tries to resolve some of the most pressing problems left over from the financial crisis. The effects will clearly be sweeping, even if not all quite predictable. At this early point, here's a rundown of some of the biggest likely winners.

Wall Street's Cantor Fitzgerald Becomes a Las Vegas Bookie

Wall Street firm Cantor Fitzgerald is taking bets and setting odds for the newly opened M Resort Spa & Casino. But instead of simply handicapping games and accepting wagers, the tech-savvy brain trust at Cantor has turned betting into something more akin to trading.

Derivatives Played "No Role" in Financial Crisis?

At the Financial Services Inquiry Commission hearing, former Wall Street derivatives executive Steven Kohlhagen claimed derivatives generally played "no role" in causing the financial crisis. This puzzling argument doesn't pass the straight-face test.

The Case for Buying Bank Shares Now

Some pros are aiming straight at the eye of the financial hurricane, buying into the besieged banks. Here's why: The uncertainty threatening them has dissipated, and banks will now start looking for new ways to profit from the new rules.

What's Inside the Financial Reform Bill

Senate and House negotiators reached agreement early Friday morning on the most sweeping overhaul of financial regulation since the Great Depression. It includes a version of the Volcker rule, creates a consumer financial protection watchdog, and limits derivatives trading.

The Financial Reform Endgame Approaches

One of the key questions facing Congress as it labors to reconcile the House and Senate bills is this: Three years after the financial crisis began, how much risk should America's banks be allowed to take? Not surprisingly, opinions differ greatly.

Risky Business: Derivatives Dwarf the World's GDP

One of the biggest risks to the world's financial health is the $1.2 quadrillion derivatives market. It's complex, it's unregulated, and it ought to be of concern to world leaders that its notional value is 20 times the size of the world economy.

10 Tough Questions for Warren Buffett

Berkshire Hathaway's annual meeting will be held on May 1. Here are 10 questions attendees should ask Warren Buffett -- ranging from the financial reform bill to housing's prospects and who the famed investor favors to succeed him at Berkshire.

How Financial Reform Could Benefit Wall Street

Rumblings about financial reform are rising. But some traders say they like what they've heard so far. Placing derivatives on exchanges may present a large new financial opportunity for the exchanges. "It's a $600 billion vehicle," says Alan Valdes of DME Securities.

'Naked' Derivatives: Bets With No Higher Purpose

The most striking portrait to emerge from the Goldman Sachs fraud charges may be that of the sheer uselessness of much of Wall Street's activities in recent years. Exhibit A: Synthetic CDOs and their ilk. And no less a capitalist than George Soros is loudly sounding the alarm.

Obama's Speech: Discontent on
Wall Street

It's no surprise big banks aren't happy with President Barack Obama's tough speech calling on them to support his financial reform efforts. Public criticism is hardly new to them.

Deconstructing Goldman's Fraud Defense

The giant bank is defending itself based on four claims it's making to counter the SEC's charges. Our legal reporter thinks the SEC has a stronger -- but not a slam-dunk -- case than Goldman Sachs on the first three points. The fourth is more up in the air.

How Goldman Sachs Could Shift the Winds on Wall Street

Just as some on Wall Street were set to coast once again, the Goldman Sachs fraud charges are a stark reminder that the consequences of a financial crisis that caused soaring unemployment and ravaged retirement savings are hardly a thing of the past.

Legal Briefing: The Strong Push to Regulate Derivatives

One of the biggest battles in financial reform is whether derivative trades will move out of the shadows into a public exchange. Derivatives played a major role in the financial meltdown, but because private trades are highly profitable, big banks and their GOP allies are fighting hard against reformers' push for new regulations.

The Newest Franken-Finance Creation: Liquidity Derivatives

Bet you thought the financial world had learned a bit of prudence from the recent meltdown. But no. Citigroup has a clever new derivative for the markets, and this latest attempt at selling "end-of-the-world insurance" could be just as dangerous to the system as credit default swaps were.