Securities and Exchange Commission
We warned previously that when (not if) the market crashes next, The Fed is going to need a scapegoat (other than British traders living at home with their parents) and judging by The Fed's Lael Brainard's comments today, high-frequency-traders (HFT) are in the crosshairs. Crucially, Brainard warns that HFT "may amplify market shocks," and The Fed is "studying possible changes in liquidity resilience."
- Tsipras backs down on many Greece bailout demands (FT)
- Creditors skeptical of Tsipras' offer (Reuters)
- Greek Pension Rationing Begins; Poll Shows Tsipras Backed (BBG)
- Greek referendum poll shows lead for 'No' vote, but narrowing (Reuters)
- Greek Bank Controls Heap More Pain on Crisis-Weary Citizens (BBG)
- Greek Crisis Ripples Across European Companies as Markets Swing (BBG)
- China Stocks Fall: Shanghai Composite Index Drops 5.2% (BBG)
- China June factory, services surveys fuel hopes economy leveling out (Reuters)
- Some Chinese Are Taking 22% Margin Loans to Finance Stock Purchases (BBG)
It’s happening. As expected, dynastic politics is prevailing in campaign 2016. After a tease about as long as Hillary’s, Jeb Bush (aka Jeb!) officially announced his presidential bid last week. Ultimately, the two of them will fight it out for the White House, while the nation’s wealthiest influencers will back their ludicrously expensive gambit. And here’s a hint: don’t bet on Jeb not to make it through the Republican gauntlet of 12 candidates (so far). After all, the really big money’s behind him.
- This headline needs updating: Creditors set bailout ultimatum for defiant Greeks (Reuters)
- Greece’s Fragile Banks Leave Alexis Tsipras Few Options in Bailout Talks (WSJ)
- Dueling Greece Plans Presented as Ministers Race for Aid Deal (BBG)
- Icahn Cashes In His Netflix Chips (WSJ)
- Meet the Health-Law Holdouts: Americans Who Prefer to Go Uninsured (WSJ)
- ECB holds Athens lifeline unchanged as Bundesbank protests (Reuters)
- Supreme Court Guide: Six Big Decisions Remain (WSJ)
- The Rise of the Compliance Guru—and Banker Ire (BBG)
- Mood brightens after latest Greek offer to creditors (Reuters)
- ECB's Nowotny - Greek banks have funding extension for today (Reuters)
- Any Greece deal must match party manifesto, minister says (Reuters)
- Greece says now up to lenders to move on an agreement (Reuters)
- Greece sends wrong documents to monitors... Again (FT)
- U.S. won't let Russia 'drag us back to the past': Pentagon chief (Reuters)
- Belgium unblocks part of Russian diplomatic missions’ frozen accounts (Tass)
- Fed Scoop Heralded Era of Closed Doors for $100,000 Newsletters (BBG)
SEC's Mary Jo White "Embodies, Promotes Wall Street-Regulator Revolving Door Policy", New Report FindsSubmitted by Tyler Durden on 06/16/2015 16:30 -0400
While we are now well aware of the unpatriotic-ness of tax inversions, Goldman Sachs raises the red flag on another corporate action that is about to become highly politicized - share buybacks. The last (and only) pillar of buying left in the US equity markets is set to draw political attention and likely to gain prominence, particularly ahead of the 2016 election.
Moments ago, what many thought was inevitable with the stock trading just $1 above its 52-week low and just over 50% below its all time high, finally happened when Twitter issued a press release stating that CEO Dick Costello has decided to step down, leading to an immediate surge in the stock, and the obligatory tweet:
Back in October, following the shocking news that after building Pimco from the ground up, Bill Gross would depart the world's then biggest bond fund following internal infighting, there were concerns that as a result of a surge in redemptions and liquidation sales at the Gross-controlled Total Return Fund, the already illiquid bond market would suffer and potentially go bidless across various CUSIPs in order to extract the best price from the forced seller. This did not happen despite an unprecedented surge in redemptions which has seen PIMCO's AUM tumble by 60% from its peak holdings of $293 billion in April 2013. Why not?
"It’s about time we start getting worried about possibly the next [financial crisis]," warns BlueMountain's James Staley explaining that, "the lack of liquidity that currently exists today, is something that people on the buy side, sell side and regulatory side need to be focused on." In an effort to quantify just how big that 'issue' is, Bloomberg reports that the U.S. corporate-bond market has ballooned by $3.7 trillion during the past decade, yet, as Citi's Stephen Antczak warns, almost all of that growth is concentrated in the hands of three types of buyers, "we used to have 23 types of investors in the market. Now we have three. In my mind, that’s the key driver."
"These record profits that companies are reporting are not all they're cracked up to be."
The Department of Education says it will forgive federal student loans made to Corinthian Colleges students who can prove they were victims of fraud. The potential cost to taxpayers: nearly $4 billion. With the precedent thus set, the question now is whether continued pressure on for-profit colleges will result in further closures and more petitions from hundreds of thousands of students with hundreds of billions of loans they now know can be legally discharged.
The Non-GAAP Revulsion Arrives: Experts Throw Up All Over "Made Up, Phony, Smoke And Mirrors" NumbersSubmitted by Tyler Durden on 06/08/2015 10:31 -0400
After years of crusading against the farce of non-gAAP "earnings" by management teams who are engaging in fraud against their shareholders, one in which both accountants, bank advisors and regulators are all complicit, we are delighted to see that finally the mainstream press has taken the bullshit that is non-GAAP "EPS" to task. In a report by AP's Bernard Candon, titled "Experts worry that 'phony numbers' are misleading investors" we read that the "record profits that companies are reporting may not be all they're cracked up to be." He was being very polite.
The primary job of modern American regulators is to protect entrenched status quo interests. Protecting the public doesn’t even factor into the equation.
Just when you thought the US regulators may have finally become less tone deaf to the shame of the revolving door, especially following last year's latest scandal confirming Goldman runs the New York Fed (and every other central bank), here comes the SEC with an absolute shocker, not only proving once and for all that when it comes to regulatory capture, there is nobody in charge quite like Lloyd Blankfein, but unveiling what may have been the first ever double revolving door in SEC history, after the SEC announced it had hired as its new chief of staff a former Goldman worker who had previously worked at... the SEC. And with that the we have gone not only full circle but full retard as well.