“Systemic risk is in the system [and] we are in uncharted territory. Think about holding other assets. That could mean precious metals, it could mean physical currencies.”
Tom Hayes told prosecutors in 2013 that UBS Group AG distributed "an instruction manual on fixing Libor" to suit their trading positions. The Swiss bank’s e-mailed “Guide to Publishing Libor Rates,” which was shown to jurors by prosecutors in London Thursday, included an instruction for traders to adjust their submissions depending on their “delta/fixing position.” “If 3m Libor” exposure “is 4,125 this means we are receiving” and “therefore we want to increase the fixing by 25 basis points,” according to the internal UBS guide. “If the number is negative then vice-versa.”
The key events on tap for next week.
Looking back at the Lehman Brothers collapse of 2008, it’s amazing how quickly it all happened. In hindsight there were a few early-warning signs, but the true scale of the disaster publicly unfolded only in the final moments before it became apparent that Lehman was doomed. Could this happen to Deutsche Bank?
Approximately two years ago, a commentary was published entitled “The One Bank”. The empirical foundation for the article (and the paradigm) was an extensive computer model, produced by a trio of academics at a university in Switzerland, and originally reviewed in an article from Forbes.
Elizabeth Warren may or may not understand the "global banking system" as Jamie Dimon alleges, but the JPM CEO certainly does as the following 14 "reasons" clearly confirm...
David Nicholls: “Banks do not collude to try to set a Libor rating. “I think I am just hearing a lot of hysteria about Libor that is just misinformed."
John Ewan: “A cabal of them could.”
Nicholls: “What’s a cabal?”
Ewan: “A group together could."
Nicholls: “That’s an interesting conspiracy theory."
- Greece Said to Submit Revised Budget Plan in Bid for Funding (BBG)
- Protesters seek firing of Texas officer who threw girl to ground (Reuters)
- HSBC to cut 50,000 jobs in quest for higher dividends (Reuters)
- U.S. base shipped live anthrax to 19 states plus D.C.: Pentagon (Reuters)
- Obama Administration Opens Door for More Student-Debt Forgiveness (WSJ)
- China Said to Weigh Margin Finance Rule Change Amid Stock Boom (BBG)
- Doctor who trained U.S. troops suspended for macabre techniques (Reuters)
- Exxon to Face Regulators’ Questions Over Quakes (WSJ)
Earleir today in confirmation that a crack down on yet another market for gross manipulation is imminent, the Post reported that the Department of Justice fresh from doing all it can do prevent Vladimir Putin from blowing $10 billion in the bottomless hole that is World Cup 2018 infrastructure spending, is probing the Treasury market for possible manipulation.
- White House denies Obama said strong dollar a problem (Reuters)
- Lira Falls to Record Amid Stock Rout as AK Party Loses Majority (BBG)
- Bond-Market Game of Chicken With Fed Is Riskier Than Ever (BBG)
- Xetra Dax enters correction territory (FT)
- China trade shrinks amid slowing demand (FT)
- Greek government eyes compromise with lenders, rules out snap polls (Reuters)
- If You Think Greece’s Crisis Will End Soon, Think Again (BBG)
- China growth data ‘overstated’ due to data error (FT)
- Calpers to Cut External Money Managers by Half (WSJ)
Why has the dollar jumped in recent weeks? Global conspriacy and lies? Are thousands of investors and participants being deluded?
"Anshu Jain and Jürgen Fitschen, the embattled co-chief executives of Deutsche Bank AG, plan to announce their resignations, according to people familiar with the matter, an abrupt move that throws into question the future direction of one of the world’s largest banks," WSJ reports. John Cryan, former UBS CFO, is reportedly in line to take the helm.
Currently, there are things occurring that are very troublesome, and in more normal times, would likely already have investors heading for cover. However, in today's liquidity fueled, Central Bank supported environment, that has yet to be the case. The reason was best described recently by Dr. Robert Shiller "I call this the 'new normal' boom ó it's a funny boom in asset prices because it's driven not by the usual exuberance but by an anxiety." What happens next is only a guess. However, historically, it hasn't been the outcome that investors were hoping for. But then again, maybe "bearish bull" isn't as much of an oxymoron as it is just a warning.
- China stocks fall, led by ChiNext, on margin tightening; Hong Kong down too (Reuters)
- Bond market sell-off rumbles on, stocks feel the pinch (Reuters)
- Bond Rout Wipes Out 2015 Gains as Traders Stay Glued to Screens (BBG)
- Greek Groundhog Day Continues With Talks Failing to Break Impasse (BBG)
- Greece and Its Creditors Agree on Some Measures in Bailout Talks (WSJ)
- 'Bellingcat Report Doesn't Prove Anything': Expert Criticizes Allegations of Russian MH17 Manipulation (Spiegel)
- GE Said to Hire Banks to Start Sale on $20 Billion Assets (BBG)
- Alibaba Pictures plans $1.6bn share sale (FT)
- How Companies Justify Big Pay Raises for CEOs (BBG)
Two years ago, bank analyst Mike Mayo asked JPM chief Jamie Dimon a simple question: why should affluent customers not pick UBS over JPM due to a mismatch in capital ratios, to which Dimon's response was even simpler: "that's why I'm richer than you." To which we then added: "No logic, no rationale: all about the bottom line, which to Jamie at least is all that matters. The bottom line was indeed all, because as Bloomberg calculated overnight, over the past several years, Jamie Dimon quietly became not just "richer than you", but "much" richer: his net worth is now well over $1 billion!