Archive for the ‘General’ Category.
This week I saw a story about how a college intern at Lehman Brothers in 2006 was trading a $150 million proprietary trading book for the firm. It was a revealing anecdote about the nature of risk management at the time from a recently released book by former Lehman prop trader Lawrence McDonald.
CME Group is in talks to buy Dow Jones Indexes, according to The Financial Times, which reports that a deal would cost CME Group $700 million. This Wall Street Journal story cites the advantages of the deal, including cost cutting (as CME Group now pays Dow Jones licensing fees) and protecting the CME Group’s existing business lines. It’s unclear how or if this would affect CME Group’s current exclusive licensing agreement with S&P indexes. A CME Group spokesperson would not comment on anything specific. Do you think the deal will happen? Would it affect your trading? Leave your thoughts in the comments section below.
There was a rosy picture painted for the U.S. dollar, earnings and the economy at large at Dow Jones Indexes‘ 2010 Global Economic Outlook today. Analysts predicted a rebound in global economic activity. Kevin Logan, an independent global economist, said by the middle of this year, estimates for global GDP growth in 2010 are likely to be double what they were in the middle of 2009. Analysts said that the dollar would start out the year weak, with a recovery sometime in mid-2010.
It’s that time again, when all of the pundits and analysts weigh in with their predictions for the new year, and, as we leave “the aughts” behind, the new decade. The past two weeks have been chockablock with best of/worst of ‘09 lists, events of the year, people of the year, etc. (Time magazine’s choice for Person of the Year for 2009, Fed Chairman Ben Bernanke, actually ties in very nicely with Futures’ January Markets piece, “Interest rate policy: Under pressure.”) The consensus among many pundits is that the coming decade HAS to be better than the one we’re leaving behind. Continue reading ‘Drama ahead in 2010?’ »
Blogger Felix Salmon tossed out the subject of whether a PhD in Financial Journalism should be created, apparently in light of the poor job done by the media in covering the credit crisis. Actually he notes that an ex Lehman Bros. executive is trying to create such an education track and Salmon threw it out for public discussion and it has been bandied about by media based chat rooms.
Continue reading ‘More curiosity, less arrogance is what is needed’ »
The Nation recently published an interesting article on the financial crisis of 2008 citing the head of the obscure regulatory body the Office of the Comptroller of the Currency (OCC), John Dugan, as one of the prime architects of our current economic woes.
I’ve read several lists citing people to blame for last year’s financial turmoil and Mr. Dugan, if cited, certainly wouldn’t be on the list of usual suspects.
Did you hear? Citigroup is paying back its $20 billion in TARP money! But as this New York Times editorial points out, big banks’ motives for paying back the government are (surprise, surprise) less than pure; namely, the banks want to get out from under the pay caps and restraints of the bailout. As the Times says:
“The Treasury Department, which seems to have no qualms about Citigroup’s self-proclaimed strength, plans to sell its $25 billion stake over the next six to 12 months… The Treasury Department’s approval is a grim reminder of the political power of the banks, even as the economy they did so much to damage continues to struggle.” Continue reading ‘Big banks’ fog follies’ »
Goldman Sachs’ holiday partying spirit was once again dimmed this year by a Grinch called the economy. Like last year, Goldman’s holiday party was cancelled, but this year, there’s a new twist. According to the Business Insider, Goldman Sachs employees are not allowed to organize private Christmas parties for the firm’s employees at their own homes, even if no firm money goes to pay for them. This Gawker story says that Goldman employees are basically not allowed to party in groups of 12 or more. Continue reading ‘Ain’t no party like a Goldman party’ »
The CME Group’s Global Financial Leadership Conference held in Naples, Florida this week included several impressive speakers who analyzed markets and the economy in lieu of the credit crisis and efforts undertaken to deal with it.
While many issues were discussed and many points of view presented, there was an unmistakable common theme. That theme is that our current deficit spending and debt levels are unsustainable.
CME Group has received a lot of honors since its IPO in late 2002 and generally is seen as a pretty forward looking company, so it was a bit of a surprise to see on a list of Chicago “worst boards”.
