derivatives market

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Shareholders Sue JPMorgan

They say it misled them regarding risk

(Newser) - Two shareholders filed separate lawsuits against JPMorgan and its top executives in the wake of its $2 billion trading loss , accusing them of misleading investors about the company's risk exposure. One aspires to be a class action suit, representing anyone who owned JPMorgan stock from April 13 to May... More »

Heads Roll at JPMorgan Over $2B Trade Loss

CEO Jamie Dimon will accept at least three resignations

(Newser) - JPMorgan's disastrous $2 billion trading loss has officially claimed its first casualty. Chief Investment Officer Ina R. Drew, a 30-year veteran of JPMorgan and one of Wall Street's most prominent women, retired today, the AP reports. Drew was responsible for overseeing the disastrous trades. Executives say she ordered... More »

JPMorgan: 'Sloppiness' Cost Us $2B in 6 Weeks

'London whale' loss stuns financial world, could trigger calls for more regs

(Newser) - JPMorgan Chase has stunned the financial world by disclosing trading losses of $2 billion since the beginning of April, caused by what CEO Jamie Dimon calls "errors," "sloppiness" and "bad judgment." The losses came from bad trades made by a unit that was supposed to... More »

Democrats Hammer GOP on Wall Street Ties

Pat Toomey's taking especially heavy fire

(Newser) - As the midterms heat up, expect to hear the words “Wall Street” a lot. Democrats are hammering Republicans on their ties to Wall Street, no matter how tangential, and on their party’s opposition to financial reform legislation, the LA Times reports. Republicans, meanwhile, speak angrily about bailouts and... More »

Reform Isn't Perfect, But Still 'Big and Welcome'

Consumer agency great, but Volcker rule remains 'vague'

(Newser) - The Wall Street reform that emerged from Washington this morning isn't perfect, but all in all this is a "great day," writes financial blogger Felix Salmon at Reuters . The consumer protection agency is overdue, "and while banks won’t have to sell their swaps desks entirely, they... More »

Senate Finance Bill Could Trim Big Banks' Profits 20%

New rules on derivatives could be costly for Wall Street

(Newser) - To their surprise, the financial reform bill approved by the Senate last night has some real teeth, financial analysts tell the Wall Street Journal . Although specifics depend on what emerges from the confab with the House, some of Wall Street's biggest institutions could see profits decline by as much as... More »

Morgan Stanley Hit With Criminal Investigation

Prosecutors looking into mortgage deals

(Newser) - Looks like Goldman Sachs might have some company. Federal prosecutors have launched a criminal investigation into some of Morgan Stanley's mortgage derivative deals, the Wall Street Journal reports. Morgan Stanley created several mortgage-backed CDOs that it then bet against. Some it marketed itself, while others were sold by Citigroup and... More »

65% of Americans Back Stricter Financial Controls

Even split on Obama's handling of issue, and reining in derivatives

(Newser) - Two-thirds of Americans say they support tighter regulation of banks in a new Washington Post -ABC News poll, and majorities also agree with the two main components of the Senate bill Democrats are poised to introduce this week: more federal oversight of consumer loans (59% to 38%), and making banks... More »

Buffett Lobbies Dems to Soften Derivatives Rule

And he may succeed in getting current contracts exempted

(Newser) - Warren Buffett, the guy who once called derivatives “financial weapons of mass destruction,” is now lobbying Democrats to soften their restrictions on derivatives in the upcoming financial reform bill. It seems they would, as presently written, hurt his bottom line. Berkshire Hathaway has $63 billion in derivatives, the... More »

Key Piece of Financial Reform Passes

Derivatives measure even gets one Republican vote

(Newser) - More progress today on the financial reform bill: The Senate Agriculture Committee approved a bill to regulate the derivatives industry, and chairman Blanche Lincoln even got a Republican on board in the form of Chuck Grassley. The measure is seen as one of the more significant components of the overall... More »

Senators Swarmed by Lobbyists Fighting Finance Overhaul

Regulating derivatives could cost the banks billions

(Newser) - Proponents of greater financial regulation are facing fierce opposition from a swarm of lobbyists, lawyers, and bankers who have descended on the Senate committee whose chair, Blanche Lincoln, introduced the bill to overhaul the derivatives market. It's not the finance but the agriculture committee, the New York Times reports, and... More »

Democrats Defy Wall Street, GOP on Bank Reform

Banks trying mightily to kill restrictions on derivatives

(Newser) - Democrats defied Wall Street lobbyists’ push to kill new reforms on derivative trading yesterday, and got an earful from Republicans for their troubles. Goldman Sachs, JPMorgan, and Morgan Stanley have been leaning heavily on Blanche Lincoln’s Agriculture Committee to scrap a plan to force derivatives—which, incidentally, played a... More »

Goldman Helped Greece Hide Catastrophic Debt

Bank concocted deal with phony exchange rate

(Newser) - Greece's budget problems were allowed to grow to their current monstrous size with the help of a Goldman Sachs deal worthy of an Oscar for creative accounting. Greek government officials—no strangers to number-juggling themselves—used the US bank to concoct a derivatives deal that allowed the country to circumvent... More »

Obama to Propose Knocking Banks Down to Size

President plans new limits on bank size, risk-taking

(Newser) - President Obama, going on the offensive against Wall Street banks "too big to fail," plans to propose measures to limit the size of banks and their ability to take risks, according to administration sources. Adopting an approach championed by former Fed chief Paul Volcker, he wants to bar... More »

Obama, Dems Are Free Market Crusaders

Wall Street, health industry are the ones opposed to competition

(Newser) - The champions of the free market are on the march, but it's not who you think. It’s the Democrats who want to put health insurance on open exchanges where consumers can easily compare them, with a public option to inject competition into an “oligopolistic market,” points out... More »

Feds Probe Goldman's Pay Practices

(Newser) - Federal agencies are taking a close look at Goldman Sachs' pay practices and use of credit instruments as the firm's profits rebound to record-breaking levels, the Los Angeles Times reports. The company, which says it is complying with the dual investigations, has paid back its $10 billion TARP loan, but... More »

Feds Probe Shady Market for Derivatives

Banks may have unfair edge in information on credit-default swaps

(Newser) - The Justice Department is probing the market for credit-default swaps, the largely unregulated derivatives that contributed to the financial crisis, Bloomberg reports. Justice is investigating whether big banks have unfair access to price information through their ownership of a private company that provides data to investors. The Obama administration wants... More »

Obama Vows 'Light Touch' in Bank Regulation

Oversight measures aim for 'minimum' to avoid meltdown

(Newser) - Today Barack Obama will announce a major financial reform package that will give the Fed, Treasury, and FDIC new powers of regulation and oversight. It's the most substantial shift in financial regulations since the 1930s—but stops short of some of the most radical proposals, including tough limits on derivatives... More »

Banks Privately Chafe Against Derivatives Reform

Embrace change in public but quietly fight it

(Newser) - The Obama administration is pushing to reform the market for financial derivatives by requiring new reporting to make trades more transparent. In public, Wall Street is saying it's in favor of the changes, but as the Wall Street Journal reports, the banks are pushing hard against reforms behind the scenes.... More »

Obama Wants to Tame Wild Derivatives Market

(Newser) - President Obama wants to put the so-called dark markets under control, the New York Times reports, seeking congressional approval to regulate the byzantine world of derivatives trading—which played a large role in the current financial mess. In a letter to lawmakers, Treasury chief Timothy Geithner calls for an oversight... More »

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