SEC Charging Bank Of America With Making False And Misleading Statements
Submitted by Tyler Durden on 08/03/2009 - 11:34Update: All is now taken care of - BAC settles with the SEC for $33 million, less than an hour after the suit becomes public. And... it's gone. The market ramp can now continue with commercial interruptions from the Federal Reserve of the United States.
Apparently BAC screwed the pooch with misrepresenting the Merrill acquisition. Shocker. Will the SEC next pursue Hank Paulson and Ben Bernanke for enforcing this material misrepresentation? Mozillo's legal bill is already being footed by taxpayers, can we at least get a twoofer special here please?
CIT Halted... Again
Submitted by Tyler Durden on 08/03/2009 - 11:13As the market has again forgotten what a TICK < 1,000 is, CIT wants to fast forward straight to its price being $10+/share like in the good ole' days.
Guest Post: Savings Vs. Profits
Submitted by Tyler Durden on 08/03/2009 - 10:43The bad news is that the earnings recession is far from over. Earnings and businesses in general will have to adapt to the new economic landscape of savings. That means cost-cutting, streamlining, wage deflation, unemployment, capital destruction and margin-squeeze across the board.
The good news is that the macro economy – despite many government efforts to stop this process – is now finally on its course towards a long-term, sustainable equilibrium. We will return with more details later on how such an equilibrium might look.
The Spectacular Blow Up Of Huron Consulting
Submitted by Tyler Durden on 08/03/2009 - 09:30In case you missed it, one of the more interesting bits of information today was the spectacular blow up by Huron Consulting Services. The company basically restated its last 3 years of earnings, sacked its Chairman and CEO, and killed its stock (HURN) which at last check was down 70%.
Guest Post: A Grand Unified Theory Of Market Manipulation
Submitted by Tyler Durden on 08/03/2009 - 09:04There is much speculation and anecdotal information regarding the rally that began March 6 2009, which have suggested the gains are the result of massive manipulation on the part of the Federal Reserve (FR) and the large institutions that dominate Treasury securities dealing, program trading and the derivatives markets. Traders have reported that traditional indicators and metrics used for market analysis stopped working for periods of time or altogether, and that correlations among markets have been erratic and quick to change. Record program trading by Goldman Sachs as reported by the NYSE, heightened focus on high frequency trading (HFT), outsized profits by the large and well-connected banks, along with unprecedented intervention by the FR in the markets only fuel the manipulation speculation.
From The Rumor Bag
Submitted by Tyler Durden on 08/03/2009 - 08:37Is AIG's office about to get raided? Anyone with a camera phone at or about Pine Street please be on your guard for a slew of trenchcoated gentlemen carrying boxes full of toxic CDOs.
Guest Post: Dr. Blankfein, Or: How I Learned To Stop Worrying And Love Goldman Sachs
Submitted by Tyler Durden on 08/03/2009 - 08:11The Financial Crisis was a Hoax. The global casino is open again.
No worries! You actually believed there was a problem when Paulson and Bernanke threatened Congress last year with Martial Law; to blast the U.S. economy back to the 16th century; to crash the market unless ransom was paid requiring each American to fork over $100,000, give or take, dollars in impossible-to-payback future loans today to add to the hundreds of thousands each American already owes forever.
HAHAHA. It's all good, bro.
Whitney Tilson And High Frequency Trading v3
Submitted by Tyler Durden on 08/03/2009 - 07:41Whitney Tilson continues investigating High Frequency Trading
Frontrunning: August 3
Submitted by Tyler Durden on 08/03/2009 - 07:27- Goldman Sachs' reputation tarnished (FT)
- HFT Recap:
- Paul Krugman - Rewarding bad actors (NYT)
- RIse of hte machines (Economist)
- Countering High-Frequency Trading (Strategic Reasoning)
- Tradeanator 2: Settlement Day (YouTube)
- Wall Street profits from trades with the Fed (FT)
Market Is Reflecting Much More Volatility In Rates
Submitted by Cornelius on 08/03/2009 - 07:08Despite VIX on a steady decrease since late 2008, the market has seen a strong upsurge in rates vol over the summer.
Daily Highlights: 8.03.09
Submitted by Tyler Durden on 08/03/2009 - 07:05- Asian stocks rise, as Mitsubishi UFJ leads banks higher; Nissan advances.
- Bank, auto shares jump in Japan; Topix hits 9-month high but Nikkei fractionally lower.
- Britain's manufacturing sector grew in July; pound rallies on the news.
- Cash for Clunkers program could end unless Senate approves $2B in addln funding.
- China's Manufacturing grows in July as lending, stimulus counter slump in exports.
- China shares hit 14-month high as surveys show manufacturing is expanding.
Guest Post: Building Intuition Into The Macro Environment
Submitted by Tyler Durden on 08/02/2009 - 19:48"As asset prices begin to reflect real earnings, top-line sales, and restricted credit conditions, where will the market find optimism and upward pressure? Does American business have any more rabbits in the hat? After the lay-offs, cost cutting, and efficiency measures, will there be demand for their products in the face of worsening macro data? The question, simply, remains: Where will the money come from?"
On The Triviality Of Campaign Promises And "Letting The Process Work Its Way Through"
Submitted by Tyler Durden on 08/02/2009 - 16:03Some more memorable blue pill moments brought to you courtesy of Washington D.C.
The Cost Of High Frequency Trading
Submitted by Tyler Durden on 08/02/2009 - 11:36Lately, as the topic of High Frequency Trading has gotten front page prominence, there has been much confusion as to the top line impact on traders that utilize HFT methods, and inversely how much of a "toll" on investors high frequency trading is. In other words: what is the cost of liquidity?
Weekend Reading
Submitted by Tyler Durden on 08/02/2009 - 10:08- More on GDP:
- GDP Report is just plain wrong (Chris Martenson)
- Wacky waving inflatable arm-flailing GDP report (Melting Pot Project)
- Been down long long it looks like up (Econbrowser, h/t Paul)
- Falling Imports versus falling Exports (Ritholtz)
- The next brewing scandal: Chase serves itself first in mortgage mods; MBS bond holders up in ARMs (DebtWire, h/t Paul) - "You have Barney Frank and the government raising all this noise about hedge funds and investors, and you have Chase … taking half the borrowers’ interest payment each month"
- Who is Capco? (NYT)
