Risk Management

Only Ten Years After The Last Financial Crisis the Banks Are At It Again

Banks have been lobbying heavily, expending significant amounts of money again, leaning on their Congressmen and pressuring regulators, saying that their capital standards need to be relaxed so that they can make more loans to stimulate economic growth. But that, according to the FDIC Vice-Chairman, is utter nonsense.

Exclusive: How the Home Capital Sausages Were Made

In mid-2014, a whistleblower alerted the Home Capital board to the massive income verification fraud that had gone undetected for years. The board responded in early 2015 by hiring KPMG to conduct an independent review of what led to this epic breakdown in HCG’s underwriting systems. We are in possession of a copy of KPMG’s report, and for the first time ever are giving the public the unvarnished truth of how Home Capital ran its mortgage business. 

JPM Develops A.I. Robot To Execute High Speed Trades, Put Humans Out Of Work

JPMorgan will soon be using a "first-of-its-kind robot" to do away with carbon-based traders altogether and execute trades across its global equities algorithms business using a "robot" after a recent trial of JPM's new artificial intelligence (AI) programme showed it was "much more efficient than traditional methods of buying and selling", the FT reports.

Deutsche Bank Tumbles After Abysmal Trading Results

Deutsche Bank shares tumbled 4% on Thursday after the bank reported a plunge in overall company revenue which slumped to the lowest in three and a half years, as Investment Banking revenue dropped 16%, while FICC tumbled a whopping 12% Y/Y and 30% Q/Q, with CEO John Cryan taking a page out of the Goldman playbook and blaming "muted client activity."

There Is Only One Empire: Finance

As for hegemony and empire - be careful what you wish for. Life outside the financial bubble is much more contingent and risky than life inside the bubbl - until it pops.

Breaking Down The Bull Market Thesis

"Considering that forward estimates are generally overstated by 33% on average, the risk is high of disappointment... The risk for investors is “willful blindness” that builds when complacency reaches extremes. It is worth remembering that the bullish mantra we hear today is much the same as it was in both 1999 and 2007."

What To Do With Your Cash?

Is it folly to hold cash right now? Or brilliant? ..."The problem with bubbles is that they force one to decide whether to look like an idiot before the peak, or an idiot after the peak. "

"The Swarm Effect": Every Trader Today Has Just Two Choices

"...one faces a choice between two scenarios: 1) A small probability of losing all of your money all at once at an undisclosed time in the future, or 2) A high probability of gradually losing small amounts over an indefinitely long period of time, keeping in mind that persistent small losses over an indefinite time period could lead to large cumulative losses."

Goldman Wins Patent For Its Own Cryptocoin Technology

Goldman Sachs has clinched an important victory in its race to transition from a stodgy investment bank into a fintech powerhouse: It has been awarded a patent for its proposed "SETLcoin" cryptocurrency settlement system.

BNP Fined $246MM After Its Traders Were Found To Still Use Chat Rooms To Rig FX Trading

Two months after the Fed fined Deutsche Bank a paltry $157 million for manipulating currency markets after the German bank's traders were found to be using "chat rooms" to rig FX trading, we learn that there was mor gambling going on here and on Monday the Fed announced that it will fine French BNP Paribas $246 million "for the firm's unsafe and unsound practices in the foreign exchange (FX) markets."