12 Stories

Trader's Guts May Be More Important Than His Brains

According to a new study on interoception

(Newser) - When it comes to being a successful financial trader, it may be what's in your gut—not in your brain—that counts, according to a study published Monday in Scientific Reports . The study found that of 18 male traders studied, the ones who made the most money were also... More »

Trader Gets 3 Years in First 'Spoofing' Conviction

He was found guilty of 'spoofing' trades

(Newser) - Futures trader Michael Coscia has earned himself a footnote in books about financial crime and a cell in a federal prison for three years after becoming the first person ever convicted of "spoofing" in the US. Coscia, the 54-year-old chief of the Panther Energy Trading firm, was the first... More »

Traders Allegedly Monkeyed With Libor, Too

Arrests may be imminent in vast rigging scandal

(Newser) - Looks like Barclays wasn't the only one gaming the Libor system. Investigators are looking into an alleged conspiracy in which traders around the world worked together to rig Libor to boost their personal profits, the Wall Street Journal reports. Several different groups were allegedly working to rig the rate... More »

Coming Soon: Drug to Treat Gambling Addicts?

New study discovers why some people may take financial risks

(Newser) - Why are some stock traders and gamblers so willing to take financial risks? A new study shares a possible answer: Scientists found that people with higher levels of the neurotransmitter norepinephrine in a critical part of the brain related to sensory and reward systems are less sensitive to the pain... More »

BofA Doles Out $4B in Bonuses

Year-end payout breaks down to $300-$500K per employee

(Newser) - Bank of America will pay a total of $4 billion to its traders and investment bankers for their work in 2009—or something between $300,000 and $500,000 per employee. That means those responsible for the bank’s $23 billion haul in those sectors will receive about 19% of... More »

Goldman Is Greedier, Riskier Than Ever

No more Mr. Nice Goldman, partners say, in Lloyd Blankfein era

(Newser) - Goldman Sachs is making plenty of money, but that’s in part because CEO Lloyd Blankfein’s abandoned the bank’s old customer-first ethos and long-term outlook, insiders say. The New York Times spoke with nearly 20 former and current Goldman partners, and found many uncomfortable with the current regime.... More »

New Speculator Fave: AIG Stock

Day-traders flock to shares on the upswing

(Newser) - AIG’s stock has become the hottest commodity on Wall Street in recent weeks, the Wall Street Journal reports. It’s not that anyone believes the insurer is on the verge of paying back the $80 billion it owes Uncle Sam. Rather, the stock has become the go-to casino for... More »

Day Traders Jump Back Into the Game

Low interest rates entice small, leveraged players

(Newser) - Trading volume is rising on Wall Street, but it’s not because of renewed confidence from long-term investors. The surge has instead been powered by a 14% jump from online brokerages like Charles Schwab and TD Ameritrade, and much of the money has been funneled into volatile parts of the... More »

In Lieu of Bonuses, Citi Gives I-Bankers 50% Raises

(Newser) - Citigroup will raise salaries for investment bankers and traders as much as 50% to offset a steep falloff in bonus pay and keep the company’s compensation package competitive, Bloomberg reports. Other employees, like those in the consumer banking section, will receive smaller raises. Citi, which took $45 billion in... More »

Once-Frenzied NYSE Traders Twiddle Thumbs

Tech upgrades, less volume translate to gin rummy, anyone?

(Newser) - Though financial markets are as unpredictable as ever, the once-frenzied floor traders at the New York Stock Exchange are finding themselves with less to do. The introduction of a hybrid electronic system in 2006 has trimmed the workload of the iconic floor traders, who instead play cards, watch movies, or... More »

Crisis Brings Day Traders Back to Wall Street

Risk-loving market riders experience new heyday

(Newser) - Some traders like to buy and hold positions based on rational market fundamentals. Then there’s Peter Milman, who’s constantly making—or losing—tens of thousands of dollars, perched over his computer making a furious stream of bets like an arcade pinball wizard. Day traders like Milman are having... More »

Stockbrokers in High Demand on Back-to-Basics Wall St.

Some, unlike disgraced investment bankers and traders, even command bonuses

(Newser) - With investment bankers and trading desks disgraced by crippling losses, the everyday stockbroker is enjoying a renaissance as Wall Street firms look to stay relevant to customers and investors, the Wall Street Journal reports. The likely deal between Morgan Stanley and Citigroup that would create the world’s largest brokerage... More »

12 Stories