The post-"London Whale" housecleaning at JPMorgan Chase isn't over yet. On Thursday, the country's biggest bank by assets announced sweeping changes in both its top-level management and its organization.
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.
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.
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.
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!"
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.
U.S. regulators voted in favor of limiting financial institution ownership of derivatives clearinghouses, exchanges and trading platforms to 20% and capping ownership of venues that clear securities-based swaps at 40%.
In a response to the Financial Crisis Inquiry Commission, Goldman said it priced AIG's collateral on the best available market information.
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.
Winthrop Brown, a Washington lawyer who lobbies on behalf of financial services firms, says the new regulations should get "a pretty good grade" from Wall Street -- and from Main Street. But will they prevent another economic meltdown?
The effects of the Dodd-Frank financial regulation reform bill 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 from the now-passed legislation.
The bond-trading specialist is taking bets and setting odds for the new M Resort Spa & Casino. But instead of simply handicapping games and accepting wagers, Cantor's tech-savvy braintrust has turned betting into something more akin to trading.
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.
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.
While the overhaul does force banks to spin off some risky businesses and creates a sort-of consumer protection agency, its compromises miss most of the financial crisis' major causes. That means it fails to live up to its primary promise.