Why is everyone getting so outraged about JPMorgan Chase losing two billion bucks? It’s a bank. Isn’t losing money what modern banking is all about—you take in deposits from normal folk and then invest those hard earned funds in completely ludicrous schemes: subprime mortgage companies, credit card loans for people who aren’t creditworthy, Greece.
There is a small chorus of voices that is blaming neither government inaction nor banker recklessness for JPMorgan’s loss, but the policies of the Federal Reserve. These critics are arguing that excessive intervention by the central bank has distorted financial markets and forced big banks resort to risky moves in order to maintain profits.
Facebook is connecting with Mom and Pop. The world’s most popular social media site has added an online trading firm to group of firms underwriting its IPO — and is serving up a video for potential investors that might well have made George Eastman cry. It’s the longest Kodak moment ev-uh.
Just what banking industry needs – another scandal. The Wall Street Journal reported this morning that Canada’s Competition Bureau is investigating several multinational banks regarding allegations that traders attempted to manipulate a key benchmark interest rate that is used to set prices on a wide array of financial products from auto loans to corporate debt.
A key step was taken yesterday in moving the country beyond the housing crisis, a crisis that triggered the worst recession in decades and whose lingering effects continue to hinder the nation’s nascent recovery. The deal, which brought together 49 state attorneys general and the Justice Department, was a large-scale compromise between states, the federal [...]
This post was updated at 1:25pm It’s been a long slog, but government officials and representatives from major U.S. banks have come to terms on a settlement that would put an end to federal and state investigations into alleged foreclosure abuses by financial institutions.
First Goldman Sachs reports earnings of $3.2 billion for the quarter. But then, a few minutes later, Citigroup tells the world that it sort of made a little money but also sort of lost a lot of money (that is, it reported net income of $101 million, but said that, after dividends to preferred shareholders [...]
The headlines this morning were a catchy juxtaposition: “Retail sales drop on fall in autos.” “JPMorgan profits surge six fold.” Oh, and “Wall Street on track to award record pay.” The retail sales decline was actually a just a knock-on effect of the expiration of cash for clunkers. Retail sales excluding autos were up 0.5% [...]
