Wall Street & Technology's Greg MacSweeney Weblog

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Cloud Vendors: Are You Listening?
March 05, 2010 @ 12:30 PM | By Greg MacSweeney

The buzz and hype around cloud computing is practically deafening. However, despite all of the talk, users are still confused about the definition of cloud. But most important for the capital markets: cloud vendors still don’t “get it” when it comes to the regulatory and compliance concerns that most firms face on a daily basis. In fact, many capital markets executives feel that cloud vendors don’t grasp the the magnitude and severity of their security demands.

The results from a recent Wall Street & Technology Cloud Computing Survey (download here) and the following report from the Innovation Councils, a group of senior capital markets technology executives founded by Julio Gomez, echoes the concerns.

For the real scoop about what capital markets executives are saying about cloud computing, read Gomez’ take from the recent Innovation Council meeting that took place this past weekend ...

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Why Government Regulators Seem Unprepared
February 24, 2010 @ 11:29 AM | By Greg MacSweeney

The global financial crisis and Toyota's current mess have something in common -- government watchdogs didn't fully understand the complex systems they were supposed to be regulating. This is true with the SEC, as well as the NTHSA, which oversees the auto industry. Part of the problem is that they are severely underfunded and can’t hire the scientists and experts to oversee the industries they regulate. Consider this: if the SEC wants to oversee complex derivatives — you know, the ones that partially caused the financial crisis — it must hire financial experts who understand the products. However, the SEC is in competition with Wall Street firms which have the resources to pay top dollar for financial engineers with experience. How can the SEC compete? Certainly, it can’t compete with its current budget. American Public Media’s Bob Moon reports.

Obama's Controversial Stimulus Did Help Growth
February 19, 2010 @ 10:14 AM | By Greg MacSweeney

Marking the first anniversary of President Barack Obama's controversial stimulus, WSJ's Gerald Seib discusses how the package, along with interest-rate moves and a shoring-up of bank balance sheets has allowed the U.S. to outstrip European economic growth. Seib credits the Fed’s fast moves to pump money into the economy and to lower interest rates quickly, as well as the regulator’s push to have the banks clean up their balance sheets. And the much maligned stimulus package did add growth last year and will help this year, as the slow-to-spend package is doled out through the remainder of 2010.

JPMorgan: Regulation Increases Costs
February 18, 2010 @ 10:48 AM | By Greg MacSweeney

Tighter regulation is supposed to be the price of making the banks stable and taxpayers whole, but JPMorgan Chase is warning it will also bring a much higher cost of doing business, according to this audio clip from American Public Media. Bob Moon reports.

Bernie Madoff's Family May Face Charges
February 12, 2010 @ 10:41 AM | By Greg MacSweeney

It has become clear that authorities may be getting closer to pressing charges against other members of Bernie Madoff's familiy, including brother Peter and sons Mark and Andrew. Peter Madoff's lawyers have admitted that he is under criminal investigation, but declined to say for what he is being investigated. The attorney for Mark and Andrew says that the sons continue to cooperate with investigators and that they had no prior knowledge to their father's crimes. This video clip from MSNBC has more details.

How to Hide Your Computer Tracks at Work
February 12, 2010 @ 10:15 AM | By Greg MacSweeney

On this Friday, just before a holiday (3-day) weekend and after a monster snowstorm earlier this week, here is a little something to make your Friday a little more bearable. Most of you know that your boss can legally dictate what you can and can't do on the company computer. But this video from WSJ.com and Fox News shows that there are ways to get around that. Just don’t get caught. And, obviously, I don’t endorse or advocate any of these activities. I’ve never tried them either, since I’m on a MAC.

AIG Plans to Revamp Compensation Model
February 11, 2010 @ 09:02 AM | By Greg MacSweeney

AIG CEO Bob Benmosche plans to revamp the compensation model at the troubled insurer. The new model will rate employees on a 1 through 4 scale, with the top employees ranked as 1. The catch: only 10 percent of the bonus-eligible employees can be categorized as a 1, so expect a lot of anxiety at AIG as the new plan is rolled out. WSJ's Dennis Berman tells Simon Constable about a plan by insurer AIG to introduce four tiers of compensation for employees in this video clip.

Using the Super Bowl to Predict Markets
February 05, 2010 @ 07:14 AM | By Greg MacSweeney

Strange as it may sound, there are some who say the Super Bowl winner may be a good indicator of where the stock market is headed. But also remember, one economist drew a correlation between the amount of butter being produced in Bangladesh and the performance of the markets. My take? There probably isn’t any truth to it. More likely, these correlations just give us journalists something to blog about. Mark Hulbert of Dow Jones MarketWatch discusses the correlations.

Low-Latency Not Required: Trading Stock for Food
February 05, 2010 @ 07:12 AM | By Greg MacSweeney

The famous New York steakhouse Smith & Wollensky's is allowing patrons to trade stock for food. A stock certificate for a share of Goldman Sachs will likely get you a juicy porterhouse or two. A share of Citi? Maybe a half a baked potato, according to this amusing audio clip from American Public Media

Bankers Get the Cold Shoulder in Davos
January 29, 2010 @ 07:52 AM | By Greg MacSweeney

The atmosphere inside the World Economic Forum is warm and congenial. But bankers are feeling the chill wind of disapproval. Bankers are arguing that all of the new regulations — on both sides of the Atlantic — will cost jobs and reduce credit. But in the current global economic recession, bankers seem tone deaf to the realities of the world in which they live. Regulators and the public are wary that "too big to fail" banks could again cause another financial crisis. American Public Media’s Stephen Beard reports from Davos.

AIG and Backdoor Bailouts?
January 27, 2010 @ 10:02 AM | By Greg MacSweeney

WSJ's Dennis Berman tells Kelsey Hubbard about ongoing investigations into the bailout of AIG, including allegations of a coverup over payments made to some of the biggest banks who had exposure to the collapsed insurer. Was there a conspiracy to pay banks in full, but not make the news of the payments public? But the big questions: where was the Fed when AIG was writing the toxic contracts in the first place? Where was the oversight as AIG took on more and more excessive risk?

FDIC May Securitize Bad Assets
January 26, 2010 @ 11:32 AM | By Greg MacSweeney

Each time the government seizes a failed bank, taxpayers own more of them. So with five banks recently seized by regulators, what's the FDIC going to do with all those bad assets? It turns out the FDIC is planning on securitizing the assets and selling it off to investors. Sound familiar? But before you think this is just another bad move, the FDIC actually had great success with this in the 1980s and early 1990s. American Public Media’s Jeremy Hobson reports.

New Fees Could Take a Swipe at Bank Profits
January 12, 2010 @ 10:25 AM | By Greg MacSweeney

The Obama administration is likely to slap banks with a fee designed to recoup losses associated with TARP, in a move that could help lower the deficit and reduce risk-taking by big banks. However, there are a number of problems with the proposed fees. WSJ's Deborah Solomon reports.

Fed Could Be Looking at a Record $45 Billion Profit
January 12, 2010 @ 10:24 AM | By Greg MacSweeney

Early reports indicate the Federal Reserve's 2009 earnings will show record profits — close to $45 billion because of the aggressive stance the bank took when the financial crisis hit. This is good news for the federal budget, as the profits will go right back to the U.S. Treasury. Bill Radke talks to American Public Media Marketplace's Sam Eaton about why the Fed was so successful last year.

Need Stock Advice? Some Investors Are Turning to Psychics
January 08, 2010 @ 10:28 AM | By Greg MacSweeney

With Wall Street so up and down, it's hard for any expert to get a sharp reading into where the markets are heading. So some investors are looking into other options to find out about future financial fortunes. American Public Media’s Cash Peters has the story. Obviously, I’m sure many of financial advisors, brokers and wealth managers would object to this type of advice.

Volatility Falls to Pre-Lehman Lows
January 07, 2010 @ 11:29 AM | By Greg MacSweeney

The VIX's decline to a 16-month low shows an absence of anxiety on Wall Street, reports Barrons.com's Bob O'Brien. Since the VIX reached a high in October 2008, the index has gradually declined. Although the VIX doesn’t tell you how to invest, it is a good indicator of where the market may head.

FDIC Looking to Cash In on Risky Behavior
January 07, 2010 @ 11:20 AM | By Greg MacSweeney

In order to replenish dwindling reserves, the FDIC is considering charging member banks more if they're involved in risky behavior, according to this report from American Public Media’s Nancy Marshall Genzer.

Optimism Fades Heading Into 2010
December 18, 2009 @ 09:07 AM | By Greg MacSweeney

A new Wall Street Journal/NBC News poll tells that the economic crisis is taking its toll on the national psyche. WSJ's Jerry Seib explains what this declining optimism could mean for the economy and the Obama administration and incumbents running for re-election in 2010. But the broader question is how long the economic hangover will impact society.

New SEC Rules for Financial Advisers
December 18, 2009 @ 08:04 AM | By Greg MacSweeney

The SEC has taken a lot of heat for not catching Bernie Madoff earlier during his Ponzi scheme. Now the Commission has announced new rules it hopes will prevent another Bernie Madoff-like scandal from happening again. Ashley Milne-Tyte from American Public Media reports in this audio clip.

Barclays' President Bob Diamond Talks Universal Banking
December 17, 2009 @ 10:16 AM | By Greg MacSweeney

Barclays' President Bob Diamond talks with the Wall Street Journal’s David Weidner about the relevancy of the the universal banking model and what banks will look like in five years. Diamond says that he still feels that the universal banking model works and that it allows Barclays to better balance risk and to service clients.

Who Benefits from Citi's New Tax Break?
December 17, 2009 @ 10:12 AM | By Greg MacSweeney

The IRS has extended favorable tax treatment worth billions to struggling banks like Citigroup that benefited from government bailout money. But what does that mean for people who bankrolled the bailout and what does it mean for the market in general? John Dimsdale from American Public Media reports in this audio clip.

Is Goldman Sachs’ Ethos Changing?
December 16, 2009 @ 10:52 AM | By Greg MacSweeney

There is a great New York Times article today that takes a look at the culture of Goldman Sachs, long held as the gold standard of financial firms on Wall Street. The article asks if Goldman’s CEO Lloyd Blankfein has forced the firm to rely too heavily on its trading operations (which generates vast profits) and if Blankfein has undermined the value that Goldman Sachs traditionally provided its clients through its investment banking division.

As the firm chases immediate short-term profits through its trading operations, some long time executives at Goldman feel that the firm is risking its number one principle that has led to its success, namely: “Our clients’ interests always come first. Our experience shows that if we serve our clients well, our own success will follow.” Many of the executives, who refused to be named since they have mostly been made privately rich by Goldman’s success, feel that if Goldman continues to focus on short-term gains and slight the needs of some of its biggest clients, the bank — long considered to be above and separate from the rest of the firms on Wall Street — will eventually just become another ‘bank.’

Bernie Madoff's Life Behind Bars
December 11, 2009 @ 09:49 AM | By Greg MacSweeney

Bernie Madoff, the architect of the biggest Ponzi scheme in history, has served about five months of his 150-year prison sentence. While in prison, he is spending time with other white collar criminals, as well has hanging out with crime boss Carmine Persico and Jonathan Pollard, the Israeli spy, according to this report from the Wall Street Journal.

Pay Czar Setting New Limits for Exec Pay
December 11, 2009 @ 09:21 AM | By Greg MacSweeney

Today Pay Czar Kenneth Feinberg will announce a new set of pay restrictions for top executives at six big firms, including Citi, AIG, Chrysler Financial and GMAC. The new rules will likely expand pay restrictions to the top 75 people at each company. Steve Chiotakis talks to American Public Media Marketplace's Ashley Milne-Tyte about who this will affect the most.

House Finally Debates Financial Regulation Bill
December 11, 2009 @ 09:13 AM | By Greg MacSweeney

Fifteen months after Lehman Brothers collapsed there are still no new rules for the financial industry. But the bill for new regulations is finally on the House floor. American Public Media Marketplace’s Jeremy Hobson reports.

FBI May Be Eyeing SAC Capital
December 07, 2009 @ 10:23 AM | By Greg MacSweeney

After the Galleon insider trading arrests, the question is who is next. According to this Reuters article, SAC Capital Advisors -- Steven A. Cohen’s $12.9 billion Connecticut-based hedge fund — is under investigation by the FBI. SAC Capital has been investigated in the past, but no charges have ever been filed. This interesting, and long, article focuses on FBI Special Agent B. J. Kang who had had been at the center of a number of high profile securities cases, including the most recent case against Raj Rajaratnam and Galleon. Reuters investigative reporter Matthew Goldstein comments on the article and the SAC Capital investigation in this video.

ADP Jobs Report: 24th Straight Month of Job Losses
December 02, 2009 @ 09:59 AM | By Greg MacSweeney

The November ADP jobs report reveals the 24th straight month of job losses, although analysts point to one bright spot in the report. November was the 8th straight time that job losses that weren’t as severe as previous reports. Jobs has been the number one issue on everyone’s mind. The ADP employment report revealed that the economy lost 169,000 jobs in November, down from a revised 195,000 jobs in October. Following the report, all eyes will be on the Jobs Summit being hosted by the Obama Administration.

Visit msnbc.com for breaking news, world news, and news about the economy

Dubai's Debt May Hurt Banking Recovery
November 30, 2009 @ 11:11 AM | By Greg MacSweeney

The state-owned company Dubai World wants more time to repay its debt. Given that it owes at least $59 billion to creditors, there are concerns a wave of defaults could be on the way. Is the Dubai debt situation similar to the Lehman Brothers’ bankruptcy?

Banks Are Surprise Supporters for Pay Regulation
November 30, 2009 @ 11:08 AM | By Greg MacSweeney

The public comment period on proposed rules by the Federal Reserve to crack down on executive pay is over. What would the regulations do? In a surprise, banks are generally supportive of pay regulations, according to Financial Services Roundtable.

Economists Upbeat About Jobs
November 23, 2009 @ 11:10 AM | By Greg MacSweeney

The National Association of Business Economists (NABE) has upgraded its employment forecast for 2010. NABE has increased its GDP prediction for next year to 3.2 percent growth (from 3.0 percent). Richard Dekaser from Woodley Park Research says the increase GDP and the increases in productivity indicate that employers will increase hiring next year. NABE predicts that the U.S. Economy will finally see job growth by the second quarter of 2010, although it won’t be a strong job recovery initially.

New Asset Bubbles May Be Growing
November 23, 2009 @ 11:04 AM | By Greg MacSweeney

There's growing concern that the world's central banks are flooding financial institutions with too much cash, setting the stage for another asset-bubble burst. In fact, recently the yield on short-term Treasury bills was negative. Do banks just need to put on the brakes? American Public Media’s Bob Moon reports in this audio clip.

CFTC Chairman Calls for Comprehensive Reform to OTC Derivatives Market
November 20, 2009 @ 11:23 AM | By Greg MacSweeney

Gary Gensler, chairman of the Commodity Futures Trading Commission (CFTC), says that most important thing that needs to happen to the over the counter derivatives market is comprehensive reform. “The number one thing is transparency,” just like when securities are traded in the public market and everyone knows the price and the volumes. “We need to bring that same reform to this large and unregulated market,” Gensler said in an interview with MSNBC. Hear Gensler’s comments on OTC derivatives, futures contracts and more in this brief video clip.

Congress to Take Closer Look at The Fed
November 20, 2009 @ 11:21 AM | By Greg MacSweeney

A House panel has voted in favor of letting Congress take a closer look at the Federal Reserve. American Public Media’s Bill Radke talks to Alisa Roth about what the measure means and why some Fed officials are worried about more transparency.

New Task Force Targets Financial Fraud
November 18, 2009 @ 11:23 AM | By Greg MacSweeney

Following a rise in Wall Street trading scandals, the Obama administration announced a new inter-agency task force to crack down on financial fraud.

Did Geithner Do Right By AIG?
November 18, 2009 @ 11:12 AM | By Greg MacSweeney

A report from the TARP Inspector General Neal Barofsky suggests the government overpaid a good deal to rescue AIG. American Public Media’s Senior Editor Paddy Hirsch discusses Treasury Secretary Timothy Geithner's role in the bailout of AIG. Did the government do all it could to save taxpayers' money? And could have Geithner done a better job of negotiating with the banks?

Techy "Brains" Behind Madoff Ponzi Scheme Arrested
November 13, 2009 @ 11:29 AM | By Greg MacSweeney

One of the unanswered questions surrounding the Bernie Madoff Ponzi scheme was how did Madoff fool so many people for so long? Well, in addition to a lot of charm, charisma and leveraging his good reputation in the industry, Madoff also had help from a couple of programmers who allegedly falsified records to fool SEC inspectors. In fact, it’s playing out just like a Hollywood movie script. The face of the operation (Madoff) supposedly had help from a couple behind the scenes programmers who helped make the entire fraud possible. Slaving away in a back room somewhere on the 17th floor of the Lipstick building (the home of the Madoff firm at 53rd Street and 3rd Avenue), the duo created a false paper trail that helped fool regulators and calm investors. I wonder if they had pocket protectors, short sleeve dress shirts and wore big glasses? They probably didn’t, but I’m sure the movie director will have them wearing the stereotypical computer nerd attire when the blockbuster Hollywood film is made.

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Hedge Fund Copycats Show Promise
November 13, 2009 @ 07:50 AM | By Greg MacSweeney

Reuters columnist Christopher Swann says that hedge fund replication could make hedge fund-style strategies available to Joe Public — reducing retail investors’ almost total dependence on stocks. Hedge fund replicators’ fees are much lower (around 1 percent) and they don’t lock up capital for long periods of time. However, the replicator funds are relatively new and it’s hard to gauge how they will perform in the long term.

Politicians Should Keep Hands Off the Fed
November 04, 2009 @ 11:29 AM | By Greg MacSweeney

The Federal Reserve has received criticism from both the left and the right that it is too powerful, but Reuters columnist James Pethokoukis says politicians should keep their hands off the Fed and not try to bring the Reserve under Washington supervision.

Investment Managers Remain Bullish
November 03, 2009 @ 10:58 AM | By Greg MacSweeney

The portfolio managers surveyed in Barron's latest Big Money Poll think stocks could move 10 percent higher by June 2010, but the danger signals are rising. Barron’s video correspondent Clare McKeen reports that 60 percent of investment managers are bullish or very bullish about the prospects of the market through the middle of 2010.

Big Chill Seen if Bear Stearns Managers Walk
November 03, 2009 @ 10:48 AM | By Greg MacSweeney

Reuters Columnist Matthew Goldstein says too little attention is being paid to the criminal trial of of former Bear Stearns managers charged with lying to investors in the spring of 2007 about the health of once-giant hedge funds. Outcome of the trial could determine how other prosecutors pursue similar financial fraud cases.

Geithner Testifies on Regulation
October 30, 2009 @ 10:45 AM | By Greg MacSweeney

The Federal Reserve should lose its authority to bail out big, failing financial firms like AIG and Bear Stearns under proposed reforms aimed at limiting the collateral damage from such failures, U.S. Treasury Secretary Timothy Geithner said. Geithner added in this video from the Wall Street Journal that the bankruptcy code should be the primary tool for failing financial institutions, but there might be some cases where a bail out would be necessary.

Workers Reflect One Year After Leaving Wall Street
October 23, 2009 @ 07:24 AM | By Greg MacSweeney

It’s been a little over a year since the markets and economy imploded, resulting in massive layoffs in financial services. So what have some former financial workers been doing with their time? Last year, Marketplace's Jeremy Hobson, from American Public Media, interviewed two Wall Street workers who had just lost their jobs at the start of the financial crisis. He checks in on them again and gets their thoughts one year later in this audio clip.

Investors Take Aim at Brokers
October 21, 2009 @ 10:44 AM | By Greg MacSweeney

Thousands of investors hit with losses last year are filing arbitration claims against their financial advisors -- and their odds of winning look to be rising, according to Clare McKeen, a video correspondent for Barrons. Since the market meltdown a year ago, nearly 5,000 arbitration cases have been filed this year, up 65 percent from a year ago. So far this year, investors have won 45 percent of cases against advisors. Moreover, post Madoff, Congress is considering letting disgruntled investors take their claims straight to court, which may increase the number of cases that investors win.

BNY Mellon’s Successful Integration
October 19, 2009 @ 10:28 AM | By Greg MacSweeney

In case you missed it, here is a video featuring Donald Monks, Vice Chairman and Head of Integration at BNY Mellon, that focuses on the complexities — and costs — of mergers in financial services. M&A is hardly a new topic for financial services firms. However, much of a merger’s success depends on how quickly and efficiently the new bank can combine two organizations into one. Often, firms struggle to streamline information technology, resulting is duplicate systems, extra personnel and higher costs.

Monks, who headed the integration of The Bank of New York and Mellon Financial, shares his views on BNY Mellon’s successful integration. I caught up with Monks in Hong Kong this past September while at the Sibos 2009 financial services conference and he discusses where the largest cost savings can be found (infrastructure), how to control access to applications (identity management), how banks can satisfy the cost savings demands driven by shareholders, and more.

Ex-Bear Stearns Money Managers Meet Jury
October 14, 2009 @ 10:49 AM | By Greg MacSweeney

Jurors are selected in the criminal fraud trial for two former Bear Stearns hedge fund managers, as seen in he following video from Reuters. Allegedly, while the two were busy promoting the $1.4 billion funds to clients, they sent emails to each other expressing doubts about the value of the funds. The case is being widely watched by Wall Street and by prosecutors to see if this type of case can withstand legal scrutiny.

But how will the jury be selected in this high-profile Wall Street Trial? Read on ...

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Bet Your Life?
October 12, 2009 @ 10:19 AM | By Greg MacSweeney

Are Life Settlement Securities the next toxic asset? Less than one year after the credit crisis, firms such as Goldman Sachs, Credit Suisse and JP Morgan are creating life settlement securities which are made by repackaging thousands of life insurance policies into tradable securities. Policyholders get money upfront at a fraction of the policy’s value and investors are paid the full value of the policy when the policyholder eventually dies. A no brainer for investors, right? However, DBRS, a credit ratings agency, says that no life settlement security has met its standards for “safety and security” to date. And critics say these products are just like the exotic investments that triggered the financial meltdown. Wall Street claims the products are safe, because they could be structured in a way that not many people of the same age or with the same illnesses would be included in the same security. Now where have we heard that before?

Wall Street Facing New Tax Hit?
October 12, 2009 @ 10:02 AM | By Greg MacSweeney

Taxing Wall Street's financial transactions is back on the table. The Wall Street Journal’s John McKinnon says the populist notion is gaining support on Capitol Hill and with the IMF. With deficits running at record highs, lawmakers are looking for ways to raise revenues through taxes on everything from simple stock transactions to complex derivatives products. One argument in favor of the tax says that traders will think twice about taking a position to find a few cents profit if they are forced to pay a tax on all trades. Those against the move say that by imposing a tax, many traders will stop trading, thus removing much liquidity from the market. Both arguments may be true.

Is It Time to Retire the 401(k)?
October 08, 2009 @ 10:26 AM | By Greg MacSweeney

The 401(k) is not working for millions of Americans. According to Richard Stengel, managing editor at Time Magazine, the 401(k) was originally created by Congress as a tax dodge for executives, not as the primary investment retirement vehicle for most of the country’s workers. Time’s article, “Why It’s Time to Retire the 401(k)” explores the dangers of the primary retirement fund for about 73 million Americans. In fact, rank-and-file workers weren’t even eligible for the 401(k) when it was first introduced 30 years ago. Over the past five years, workers who had a standard alignment of investments in their retirement portfolio have actually seen their savings decrease. Financial experts propose an “insurance pension plan” that reduces the risk associated with wild market swings that decimated 401(k)s over the past few years.

Front-Runners Emerging for BofA CEO Spot
October 07, 2009 @ 08:24 AM | By Greg MacSweeney

Chief Risk Officer Greg Curl and Head of Retail Operations Brian Moynihan are the two most likely internal candidates to replace Bank of America CEO Ken Lewis, sources close to the situation Charlie Gasparino from CNBC. And as of now, BofA brokerage chief Sallie Krawcheck is considered a "long-shot," one of the sources said.

TGIF: The Cash Cow of High-Frequency Trading
October 02, 2009 @ 08:31 AM | By Greg MacSweeney

The Daily Show correspondent Samantha “Money Honey” Bee wants to tell her small investor friends about high-frequency trading before regulators outlaw it. Once again, Jon Stewart and his Daily Show crew have fun with the latest practice on Wall Street that is creating controversy and drawing attention from politicians and the public.

The Daily Show With Jon Stewart	Mon - Thurs 11p / 10c
Cash Cow - High-Frequency Trading
www.thedailyshow.com
Daily Show Full Episodes Political Humor Ron Paul Interview

Trustee to Sue Madoff Kin
September 28, 2009 @ 10:02 AM | By Greg MacSweeney

The trustee charged with recovering money for Bernard Madoff's victims says he plans to sue Bernard Madoff’s brother Peter; his sons, Andrew and Mark, and niece Shana for negligence and breach of fiduciary responsibility.

Watch CBS Videos Online

And there's more ...

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E.U. Unveils Controversial Financial Regulatory Plan
September 23, 2009 @ 11:13 AM | By Greg MacSweeney

Today the E.U. unveiled a plan to overhaul the way banks and financial markets are overseen. Officials hope to present the plan to the G20 in Pittsburgh as a blueprint for averting financial crises. Marketplace's Stephen Beard describes the report.

But will anything actually be accomplished? It’s been more than a year since the credit crisis began and there has been a lot of talk on both sides of the pond about regulatory overhaul, yet nothing has happened. Talk is cheap, but modernizing the regulators so they can monitor today’s (high speed and innovative) financial markets is going to take a lot of work and a huge investment. Simply put, the regulators are not capable of monitoring a mostly electronic marketplace that is getting more complicated and innovative by the day. If lawmakers want to financial regulatory reform, they had better be ready to open the checkbook to the tune of millions of dollars.

Here in the U.S., Congress is beginning two weeks of hearings on banking reform. Treasury Secretary Tim Geithner will defend a plan to merge two of the four federal regulators. But the move is drawing its fair share of debate. Marketplace’s John Dimsdale reports.

Lawmakers' Insider Advantage to Trading
September 18, 2009 @ 09:20 AM | By Greg MacSweeney

Company executives are forbidden from trading stocks using insider knowledge, but no such law exists to prevent members of Congress from doing so.

In fact, although members of Congress deny they use insider information for their own benefit, the numbers don't lie. Members of Congress outperform the market in good markets or bad. According to Alan Ziobrowski, a business professor at Georgia State University who studied more than 6,000 personal financial disclosures from members of Congress, on average "Senators make significant abnormal returns, some place around 1 percent above the market, 12 percent a year," he told American Public Media in this audio clip. American Public Media’s Steve Henn reports.

Ex-Banker Starts Eco-Friendly Taxi Business
September 18, 2009 @ 09:07 AM | By Greg MacSweeney

Here is some soft news for a Friday. Gil Schor was an investment banker in New York City before the recession. Now he is one of an estimated 56,000 financial services employees who have been laid off due to the financial crisis. Being laid off gave him the opportunity to chase a vision -- an ecologically responsible taxi company. This year, Schor will probably make only a fraction of his former salary. WSJ's Lisa Bannon reports.

Wall Street Jobs: 1 Year Later
September 03, 2009 @ 02:26 PM | By Greg MacSweeney

Wall Street has lost about 80,000 jobs over the past year, according to the Labor Department. New York City alone has lost over 30,000 jobs. That accounts for about 9 percent of the total jobs since the peak of employment back in 2008. However, recruiters say that there was fear last September that the job losses would be much worse. Still, hiring only started to pick up (slightly) near the end of Q1 2009, after almost “five months of no activity,” reports CNBC’s Mary Thompson. Watch this CNBC video for more on the job market in financial services.

And here is some more from CNBC's Thomson, as she details which firms are hiring in specific areas. Traders, restructuring experts and people with experience in commodities and health care are in demand right now.

UBS Settlement Could Unlock Bank Secrecy
August 20, 2009 @ 09:44 AM | By Greg MacSweeney

An agreement reached between the U.S. and Switzerland over secret American accounts held at the Swiss bank UBS may open the way for revelations of tax evasion at other banks. American Public Media’s John Dimsdale reports for the Marketplace Report.

Move To OTC Clearing Is Right Says LCH.Clearnet CEO
August 13, 2009 @ 10:34 AM | By Greg MacSweeney

As regulators focus on curbing speculation, the Wall Street Journal chats with Roger Liddell, LCH.Clearnet CEO, about whether things are headed in the right direction. Liddell also reveals plans for forex clearing, and updates on a proposed LCH.Clearnet takeover.

Fed Is Looking For a Few Good Traders
August 12, 2009 @ 11:06 AM | By Greg MacSweeney

The Fed is looking to hire traders, risk managers and analysts to help manage its investments, including roughly half-a-trillion dollars worth of mortgage-backed securities. But they won't make the same millions as Wall Streeters. American Public Media Marketplace’s Amy Scott reports.

Author Warns About Excessive Data Mining
August 09, 2009 @ 06:47 AM | By Greg MacSweeney

Wall Street Journal personal finance columnist Jason Zweig interviews David Leinweber, author of "Nerds on Wall Street." Leinweber, who mentions Wall Street & Technology a couple of times in his book and also runs a few images of our covers from more than a decade ago, talks about the dangers of “over mining” data. Over analyzing data can lead to false positives and he warns that financial professionals should not torture “the data until it screams.”

New Legislation May Change Exec Pay
August 03, 2009 @ 07:26 AM | By Greg MacSweeney

A bill that passed the House would allow shareholders to vote on pay packages for Wall Street executives, and give regulators new powers to limit rewards for risk taking. Amy Scott from American Public Media’s Marketplace reports.

Big Banks Face Further Scrutiny
August 03, 2009 @ 07:23 AM | By Greg MacSweeney

The worst may not yet be over for some of America's biggest banks. As the Wall Street Journal's John McKinnon reports, some of the country's biggest lenders, including Goldman Sachs, have been subpoenaed by a Senate committee as part of a fraud investigation. Law enforcement agencies will certainly pay attention to this committee’s findings.

New Rules Would Rein in Derivatives
August 03, 2009 @ 07:21 AM | By Greg MacSweeney

Democrats are working on a bill that would force most credit-default swaps onto exchanges where they can be monitored by the government. American Public Media’s Jeremy Hobson breaks down how these potential regulations would work and how they might help in this brief Marketplace audio clip.

TGIF: The Poetic Beauty of Palin's Tweets
July 31, 2009 @ 09:24 AM | By Greg MacSweeney

Love her or hate her (I don't think there is a middle ground, is there?), Sarah Palin's Twitter tweets can be poetic, but only when read by The Captain, William Shatner. The Tonight Show's Conan O'Brien brings in Captain Kirk, aka Denny Crane, to read Palin's tweets verbatim. The result is a strange free verse that Shatner takes to a new level. Enjoy on this rainy Friday. TGIF!

Also, Shatner recites Palin's final speech. Palin's final speech was a thing of poetic beauty...And who does poetry better than Shatner?

The End Of Wall Street: Why It Happened
July 24, 2009 @ 10:07 AM | By Greg MacSweeney

Here is another well produced and interesting video from the Wall Street Journal about the credit crisis. I don't think there is fresh information here, or breaking news, but the video is easy to watch. Chapter two of this WSJ series takes a look at what was going through the minds of CEOs, corporate boards, fund managers and mortgage lenders as they created hard-to-understand derivatives Warren Buffett once called "weapons of financial mass destruction."

Iron Fist With Brass Knuckles Ruled Lehman Brothers
July 23, 2009 @ 11:42 AM | By Greg MacSweeney

Lawrence G. McDonald, the author of "A Colossal Failure of Common Sense: The Inside Story of the Collapse of Lehman Brothers," speaks to WSJ's Dennis Berman about what went wrong at the top of the firm. McDonald says that Lehman just wasn’t ruled with an iron fist, “it was ruled with brass knuckles,” and that some of the “best and the brightest” who tried to bring attention to the subprime risks were immediately silenced by leaders at Lehman.

Are Speculators Driving Up Oil Prices?
July 09, 2009 @ 11:35 AM | By Greg MacSweeney

The Commodity Futures Trading Commission (CFTC) certainly suspects that oil speculators are behind the wild swings in oil prices. Bart Chilton, commissioner of the CFTC, says “it’s not our job to set prices in government, but it is our job to make sure there is no fraud, abuse or manipulation.” For the first time, the CFTC is considering setting limits on speculators in the oil futures markets with the hope of increasing transparency. Commodities traders, naturally, don’t like the proposed regulations, with some analysts even calling it a “witch hunt,” in this CBS News video.

Watch CBS Videos Online

Is Wall Street’s Day of Reckoning Still to Come?
July 02, 2009 @ 10:12 AM | By Greg MacSweeney

“Liar’s Poker” author Michael Lewis hasn’t been a popular guy on Wall Street since he wrote the book 25 years ago. Since then, he has written about finance many times and he is working on a new book about the current financial crisis. Although the banks have been scared and many have been shaken to their foundations, Lewis contends that there may be more upheavals to come. He is also shocked that the Treasury, the SEC and other agencies haven’t really begun to investigate what happened in the subprime mess. He says that when he has interviewed numerous executives from financial institutions, such as AIG’s Financial Products division, they tell him that no one from a regulator has come to try to find out exactly what happened. That fact alone, is simply astonishing.

SIFMA Spending Big to Help Financial Industry Revamp Image
June 26, 2009 @ 09:23 AM | By Greg MacSweeney
The financial services industry hopes to quell criticism with an aggressive retooling of its damaged image. SIFMA, the Securities Industry and Financial Markets Association, is spending $85,000 per month to change the public’s perception of banking. Marketplace’s Ashley Milne-Tyte reports.




How Much for Lunch with Warren Buffet?
June 22, 2009 @ 08:47 AM | By Greg MacSweeney

How much would you pay to have lunch with "The Oracle of Omaha," Warren Buffett? Tess Vigeland from American Public Media Marketplace talks to Mohnish Pabrai, who two years ago was the winning bidder in the mogul's annual charity auction. Pabrai, a money manager who runs a value fund, paid around $650,000. Here is Pabrai's account of his three-hour lunch meeting with Buffet.

E.U. Drafts New Regulatory System
June 19, 2009 @ 10:11 AM | By Greg MacSweeney

E.U. leaders are backing a draft for a new regulatory system which includes a systemic risk board to spot credit problems before they become a danger to the financial system. Britain fought to retain total control over its financial oversight, but that may now be diluted in the regulatory draft. The draft also includes an upbeat note on financial recovery. Stephen Beard reports for American Public Media’s Marketplace.

The Most Sweeping Changes to Financial Regulation Since the 1930s
June 17, 2009 @ 10:52 AM | By Greg MacSweeney

President Obama is focusing on the next step to fix the financial system: proposing new regulations that are intended to help consumers and put limits on bankers. MSNBC’s Steve Liesman goes over some of the changes, as does CBS News’ Chip Reid in the following videos. Also, new financial regulations will create a new financial consumer protection agency, require banks to carry more capital on their books, regulate derivatives and more, reports American Public Media Marketplace’s Steve Henn in the following audio clip.

Watch CBS Videos Online

Exploring What Really Broke Bank of America
June 16, 2009 @ 08:47 AM | By Greg MacSweeney

A new Frontline documentary titled "Breaking the Bank" is airing tonight that tells the tale of Bank of America's rise to its ill-fated takeover of Merrill Lynch. Also, American Public Media’s Bill Radke gets the bigger picture from "Breaking the Bank" producer Mike Kirk in the following Marketplace audio clip.

The Man Who Knew About Madoff Before Anyone Else
June 15, 2009 @ 06:34 AM | By Greg MacSweeney

Harry Markopolos repeatedly told the Securities and Exchange Commission that Bernie Madoff's investment fund was a fraud. He was ignored, and investors lost billions of dollars. It didn’t take for Markopolos to figure out that Madoff was a fraud, he says in the following video. It took him five minutes to figure out he was a fraud and four hours to mathematically prove it. Markopolos sent five separate reports to the SEC starting in 2000. All of the reports were ignored. Steve Kroft from CBS’s 60 Minutes reports.

Watch CBS Videos Online

Independent Research Runs Out of Funds
June 11, 2009 @ 10:06 PM | By Greg MacSweeney

It seems like yesterday that the stock research scandal threatened to destroy much of Wall Street. Six years ago, we discovered that research analysts at some of the big brokerages weren't being completely forthright with their stock recommendations. If only our current financial crisis was so easy to solve.

Fallout from the Wall Street stock-research scandal resulted in firms having to pay more than $450 million to fund independent market research. Six years later, some $70 million remains of the original fund. But that money will soon dry up as a judge has ordered that the remaining funds be turned over to the Treasury Department.

So now, investors who valued independent research may be left without any alternatives except for brokers research. Although today's research analysts are removed from the banking operations, many are wondering what will happen to the independent research industry, which was heralded only a few years ago as a savior to Wall Street and the investor. Amy Scott reports for American Public Media's Marketplace.

Can Credit Markets Thaw Without Toxic Assets Buyout?
June 11, 2009 @ 09:39 AM | By Greg MacSweeney

With banks raising capital, is there still a need for a government-orchestrated effort to get toxic assets off bank books? WSJ economics editor David Wessel explains that while it is possible for a recovery to happen without removing the bad assets from the banks’ balance sheets, the toxic assets remain a distraction. So the big question still remains: Do we need a "bad" bank to take these assets away from the “good” banks?

Peter L. Bernstein Dies, Proponent of Efficient Market Theory
June 09, 2009 @ 08:55 AM | By Greg MacSweeney

Peter L. Bernstein, the author of Against the Gods: The Remarkable Story of Risk and other books, died on June 5th at the age of 90. In this McKinsey Quarterly video from January 2008, the well-known author discusses the meaning of risk and explains why sophisticated mathematical models to control it sometimes go awry.

Ultimately, Peter L. Bernstein will be remembered for his development and refinement of efficient market theory, which helped him bring investing theory -- more than simply picking stocks -- to the general public. Bernstein, it seems, advocated increased regulatory oversight to strengthen the foundation of the markets, while also believing that the wealth and opportunity created by a free market were worth the risk. He also was a Keynesian and he argued that the health of the market economy required public spending on various projects.

Overreaching Derivatives Regulation Worries Dealers
June 05, 2009 @ 07:36 AM | By Greg MacSweeney

The regulator of the futures trading industry is proposing new rules for trading financial contracts known as derivatives. John Dimsdale reports that big wheelers and dealers are now fretting about overreaching regulation in this American Public Media audio clip.

Is the Credit Crunch Finally Abating?
June 05, 2009 @ 07:27 AM | By Greg MacSweeney

Last September, Standard & Poor’s Market, Credit and Risk Strategies Group launched the Credit Crunch Checklist, designed to help investors know when the credit freeze started to thaw. Michael Thompson, head of the group at S&P, says “We are in a lot better shape than we were in September.” The Credit Crunch Checklist looks at a four things, including the prices of homes, inventory of home sales, the spread between the 3-month LIBOR and Fed Funds Rate and the price of crude oil. On three of the four criteria, the Credit Crunch Checklist “has seen major improvements,” said Thompson in this MSNBC" Squawk on the Street" video.

Commentary: One Financial Regulator to Rule Them All
June 04, 2009 @ 08:22 AM | By Greg MacSweeney

Who should regulate our financial system? American Public Media Marketplace’s Commentator Robert Reich, argues there should be one financial regulator to prevent the kind of fiscal meltdown that sent the U.S. into this recession.

China Is Investing Even More in Morgan Stanley
June 03, 2009 @ 12:25 PM | By Greg MacSweeney

Morgan Stanley is raising capital through a new stock offering, and China is getting in on the deal. In fact, China's getting in on a lot of deals lately and is upping its stake in Morgan Stanley. Scott Tong from American Public Media looks into why.

Investment Bankers: CIA Wants You
May 29, 2009 @ 07:14 AM | By Greg MacSweeney

The CIA is recruiting investment bankers and other Wall Street types. If they can pass a few hurdles and stomach the $130,000 salary, the financial whizzes will work on tracking economic threats to national security. Steve Henn reports in this audio segment from American Public Media’s Marketplace.

The Rise of a Financial Stability Regulator
May 28, 2009 @ 10:14 AM | By Greg MacSweeney

Just as the Great Depression led to the creation of new institutions and financial practices, the Obama administration is on track to impact financial regulations. One of the new concepts involves a financial stability regulator, Wall Street Journal’s David Wessel explains. The big question remains: “How much power will be given to the new regulator?”

What Went Wrong When Bear Stearns Fell?
May 22, 2009 @ 07:18 AM | By Greg MacSweeney

It took 72 hours for Bear Stearns to crumble. In one day, Bear Stearns went from $18 billion in cash on hand to $3 billion, as investors panicked. Reporter Kate Kelly from the Wall Street Journal wrote about the final days of the investment bank's collapse in her book "Street Fighters" and talks with host Kai Ryssdal about what happened.

China’s New GEB Exchange takes on Nasdaq to Nurture Tech
May 19, 2009 @ 10:21 AM | By Greg MacSweeney

China's new Growth Enterprise Board (GEB) hopes to reward the country's tech stars the same way Nasdaq helped companies like Google and eBay. But the GEB exchange comes with a different set of rules for investors, reports Scott Tong from American Public Media’s Marketplace Report.

Book Dissects J.P. Morgan During the Financial Meltdown
May 14, 2009 @ 11:04 AM | By Greg MacSweeney

A new book dissects J.P. Morgan’s role in the financial crisis and how JPM managed to both help create the products that would ultimately derail the markets and also how JPM avoided some of the huge losses tied to the financial crisis. Author and journalist Gillian Tett, assistant editor, Financial Times, talks about her new book, "Fool's Gold" in which she analyzes J.P. Morgan and its role in the financial meltdown.

Madoff is Protecting People, Says Former Personal Secretary
May 06, 2009 @ 10:26 AM | By Greg MacSweeney

Eleanor Squillari, Bernie Madoff’s former personal secretary, tells the TODAY Show that she believes Madoff is protecting people. Squillari said that by 2005, “Bernie and [wife] Ruth were on top of the world and had begun spending money at the rate they never had before.” She also believes that Madoff, a maticulous planner, also staged his arrest and left behind specific clues that he wanted investigators to find, in order to protect people involved in his scheme.

Treasury, Banks Negotiate Stress Tests
May 05, 2009 @ 10:19 AM | By Greg MacSweeney

I think it’s slightly amusing that the big banks' stress test results have been pushed back as executives try to convince the Treasury Department to give them passing grades. That’s kind of like trying to convince your cardiologist that although you failed the stress test, your heart is fine. Maybe bankers feel that hey know their respective companies better than the Treasury. That is probably true, but the collective track record during the past few years doesn’t provide much confidence that the bankers can objectively self regulate and self capitalize. Here is an interview on the stress tests from American Public Media.

Was AIG's Fall Criminal?
April 28, 2009 @ 10:04 AM | By Greg MacSweeney

New information has surfaced in the federal investigation of the collapse of insurance giant AIG. As CBS News chief investigative correspondent Armen Keteyian reports, investigators wonder if AIG’s downfall was due to criminal acts, such as securities fraud. CBS News is reporting that a Justice Department criminal investigation is trying to figure out just how AIG crumbled. According to Keteyian, sources say investigators are digging into whether Joseph Cassano, the former head of London-based AIG Financial Products, and two of his top deputies -- Andrew Forster, an executive vice president, and Thomas Athan, a managing director -- committed securities fraud and other federal crimes.

Watch CBS Videos Online

Investors Await Bank Stress Tests
April 24, 2009 @ 09:58 AM | By Greg MacSweeney

Crucial regional banks are expected to fail the Fed's "stress tests," reports CBS News’ Priya David and investors are waiting for more details that will be release later today. Wells Fargo, JPMorgan and Goldman Sachs are expected to pass. CBS’ Maggie Rodriguez speaks to Sen. Chris Dodd from the Senate Banking Committee.

Watch CBS Videos Online

BIDS Chief Mahoney Says Fragmentation Distorts Volume and Volatility
April 23, 2009 @ 10:16 AM | By Greg MacSweeney

Today it's harder to rely on share volume as a stock-market indicator than it used to be, Tim Mahoney, chief executive of BIDS Trading, explains to MarketWatch's Greg Morcroft. Mahoney says we are witnessing a transformation in the marketplace as “the role of the market maker has moved from a person to a computer.” Mahoney estimates that 70 percent of the volume in the markets today comes from computerized trading. He also discusses how the fragmentation in the markets is skewing the traditional volume numbers — from NYSE and Nasdaq — that investors traditionally relied on.

Investigators Open 20 TARP-Fraud Criminal Probes
April 22, 2009 @ 09:54 AM | By Greg MacSweeney

Ever since taxpayer money was handed out to U.S. banks, the question has been "where did the money go?" TARP warns that one out of ten bailout dollars could be lost to fraud, amounting to possibly $100 billion or more. The lead investigator says that with so much money being handed out in such a short period of time, it is not surprising that schemes and criminals would try to benefit. Securities fraud and insider trading are just two types of crimes various government agencies are investigating. CBS News’ Chip Reid reports.

Watch CBS Videos Online

Geithner Under Fire on Capitol Hill Today
April 21, 2009 @ 09:34 AM | By Greg MacSweeney

A critical watchdog report out this morning on the Troubled Asset Relief Program (TARP) says Tim Geithner’s Treasury Department needs to do a better job of tracking how banks are using TARP money.

Unemployment May Peak at 10%
April 03, 2009 @ 07:34 AM | By Greg MacSweeney

A little more than 11 months ago (May 29, to be exact) I wrote a blog that called for 9 percent unemployment by April 2009, when the official numbers are reported in early May of this year. At the time, the forecast received some criticism — mostly from people in denial about the severity and depth of the financial crisis. Well, it looks like 9 percent national unemployment is a reality, but if you read on, there is good news to report as well.

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G-20 Takes Shape Around Regulation
April 02, 2009 @ 09:52 AM | By Greg MacSweeney

As the G-20 gets underway, regulation is the big theme, and countries are starting to pledge their support to do what's necessary to help their economies. American Public Media’s Steve Chiotakis reviews other decisions being made with Stephen Beard in London.

Google Forms $100 Million Venture Capital Fund
April 01, 2009 @ 10:47 AM | By Greg MacSweeney

Google has formed Google Ventures, a $100 million venture capital fund that will invest in new technology companies in a broad range of industries, according to Google. Unlike some venture capital funds that specialize in a certain type of technology or a specific sector, Google Ventures will target many technologies, including clean technologies and healthcare, according to Rich Miner, co-manager of Google Ventures. Miner will manage Google Venture with Bill Maris.

What Will the G20 Meeting Accomplish?
March 31, 2009 @ 10:15 AM | By Greg MacSweeney

As world leaders prepare for the G-20 summit, it's become clear that stimulus package increases won't be on the table. American Public Media’s European correspondent Stephen Beard tells Steve Chiotakis what likely will be accomplished at the meeting.

Watch Out for the Conficker Worm
March 31, 2009 @ 10:04 AM | By Greg MacSweeney

CNET's Natali Del Conte shares tips with Maggie Rodriguez about the April 1 ''Conficker'' worm, which could steal financial information and other data from computers. However, while experts are concerned about the complexity of the worm, they don't know if this virus is the real deal, or an April Fool's hoax.

Watch CBS Videos Online

Geithner Responds to Krugman’s Bank Bailout Critique
March 30, 2009 @ 09:54 AM | By Greg MacSweeney

Treasury Secretary Tim Geithner responds to Nobel Prize-winning economist and New York Times columnist Paul Krugman’s critique of President Obama’s bank bailout with NBC’s David Gregory on “Meet the Press.”

Obama Meets with Senior Bankers Today
March 27, 2009 @ 09:39 AM | By Greg MacSweeney

WSJ.com is reporting that President Obama is expected to meet with several high profile bankers in Washington as he seeks to gain support for the latest plan to stabilize the financial sector.

American Public Media’s Marketplace Morning Report has more on the bank executives' meeting with President Obama.

25 People to Blame for the Financial Crisis
February 13, 2009 @ 08:20 AM | By Greg MacSweeney

There is plenty of blame to go around in the current economy. Congress, Wall Street, regulators, homeowners, CEOs, and the list goes on. But make no mistake, fairness and blame do not go hand in hand. Time Magazine has just published a list of the top 25 People to Blame for the Financial Crisis. While the list is fairly accurate, don’t expect similar lists, raving commentaries or funny Saturday Night Live skits at the expense of Wall Street to go away any time soon.

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Obama Faces Bleeding Banks
January 22, 2009 @ 09:00 AM | By Greg MacSweeney

Despite billions of dollars of government bailout funds, many banks are still reporting huge losses. As CBS News’ Anthony Mason reports, newly-elected President Obama and his cabinet face huge fiscal challenges.

Watch CBS Videos Online

House Financial Services Committee Madoff Hearing (Video)
January 06, 2009 @ 08:54 AM | By Greg MacSweeney

If you missed the riveting, 3.5 hour House of Representatives Financial Services Committee hearing on the alleged Bernie Madoff affair, you missed one of CSPAN’s finest moments. View the full hearing, or a shorter version from CBS News, in the video players on the next page.

DISCLAIMER: Wall Street & Technology is not responsible for viewers’ irritation toward elected officials, Bernard Madoff, the SEC or your rapidly rising level of frustration and blood pressure while you watch this video.

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Let’s Play the Financial Acronym Game
January 05, 2009 @ 09:08 AM | By Greg MacSweeney

Here is a fun audiocast from American Public Media about the alphabet soup in financial services. CDO, CDS, FDIC, LIBOR, TARP, ARM and the list goes on. Ever notice that there are a lot of acronyms involved in finance and business? Well, there's a good reason for them.

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Markets Bid a Not-So-Fond Farewell to 2008
January 05, 2009 @ 09:04 AM | By Greg MacSweeney

It's been a horrible year for stocks overall, the worst since 1931. Wood Asset Management's Robert Stovall predicts more trouble ahead in 2009. Sam Stovall, Robert's son of Standard & Poor's, and his father review the past year with MarketWatch's Steve Gelsi. (WSJ.com video)

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New Financial Products Need New Regulation
December 23, 2008 @ 07:14 AM | By Greg MacSweeney

The crash of the financial markets and the pile up of investment scams have some people asking -- Where were the regulatory agencies in all of this? Commentator Amelia Tyagi says financial products need to be regulated as strictly as the drug, toy and cosmetic industries to prevent further meltdowns, in this American Public Media audio clip.

Where Did the Bailout Money Go?
December 23, 2008 @ 07:03 AM | By Greg MacSweeney

Mad Money’s Jim Cramer discusses what happened to the bailout money on MSNBC and says that Hanl Paulson, Treasury Secretary, maybe didn’t even have a plan in place when he handed checks to all of the major banks. Cramer is astonished that there isn’t an investigation into what has happened to all of the money. And, surprise, Cramer is outraged.

Weekend at Bernie's
December 15, 2008 @ 09:23 AM | By Greg MacSweeney

OK, I wasn’t really at Bernie Madoff’s house, and my weekend wasn’t as funny as the 1989 film Weekend at Bernie’s, but everywhere I went this weekend people were talking about Berard Madoff’s alleged $50 billion Ponzi scheme. First, a father in my son’s Saturday morning ice hockey class mentioned the alleged fraud to me as we were chatting. Then, later that afternoon as I was sitting on a Polar Express train ride in Phillipsburg, NJ, I heard a couple of adults discussing Bernie Madoff across the aisle. (If the kids were discussing Madoff, I really would have been floored). By the way, the train ride is a lot of fun for the kids — hot chocolate, Santa, elves, music, silver bells, the whole nine.

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Shock and Disbelief: Bernard Madoff Accused of Defrauding Clients of $50 Billion
December 12, 2008 @ 12:07 PM | By Greg MacSweeney

Bernard Madoff, the founder of Bernard L. Madoff Investment Securities LLC and a former Nasdaq Stock Market chairman, was arrested and charged with securities fraud in what has beeen called by federal prosecutors as a Ponzi scheme that could involve losses of more than $50 billion.

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Treasury on Hot Seat Over TARP Execution
December 11, 2008 @ 08:39 AM | By Greg MacSweeney

Two-and-a-half months after Congress gave Henry Paulson $700 billion, lawmakers made it clear today they're having second thoughts. The occasion was a hearing of the House Financial Services Committee. Members gave assistant Treasury Secretary Neel Kashkari, the TARP czar, a grilling.

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The Walking Zombies of Wall Street (video)
December 10, 2008 @ 08:46 AM | By Greg MacSweeney

WSJ's Dennis Berman tells colleague Evan Newmark that although tens of thousands of people have managed to hold on to their jobs, there isn't much work to go around. Instead, he says, Wall Streeters are working to appear busy. Really? Well, maybe in certain parts of the business. But after speaking with many CIOs and other technologists, they are up to their eyeballs in work and planning for 2009. And many are still trying to figure out how to complete all of the projects (which haven’t been reduced) with a smaller budget and skeleton staff.

Mumbai Financial Firms, Technology Providers Incensed After Attacks
December 05, 2008 @ 07:52 AM | By Greg MacSweeney

Last week's terror attacks rocked the Mumbai business community. Niraj Sheth, a reporter from the Wall Street Journal, speaks with Tata Consultancy Services’ CEO S. Ramadorai and Ashok Wadhwa, CEO and managing director of Ambit Corporate Finance Pvt. Ltd., about how they are taking action to ensure Mumbai is both safe and business-friendly.

Scheming to Get Some Bailout Love
November 26, 2008 @ 09:43 AM | By Greg MacSweeney

These two reporters have the right idea about how get a piece of the bailout pie, in this video from WallStrip.com. How can you get some bailout dollars? It’s easy. Become a bank holding company or an automaker. Heck, American Express became a bank holding company seemingly overnight. So can you! Well, maybe not, but given the flip flopping of Hank Paulson, you never know where bailout dollars will be headed next.

Watch CBS Videos Online

Day Traders React to Market Volatility
November 21, 2008 @ 02:26 PM | By Greg MacSweeney

Who says you can't make money in this market? A number of times over the past few weeks, I've heard people say that the current markets aren't good for investing, but are actually great for trading. In fact, the insane volatility creates a perfect market for active traders. Although many frown on so-called day trading, it is part of the market. In this report from WNYC.org, day traders talk about surviving and even thriving in today's market.

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Regulators Place Hedge Funds on the Hot Seat
November 14, 2008 @ 08:03 AM | By Greg MacSweeney

Yesterday, Congress questioned heads of some of the worlds largest hedge funds about their role in the global financial meltdown in hearings on Capitol Hill. Not surprisingly, Congressional leaders are looking to regulate the largely unregulated hedge fund market.

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Nine Percent Unemployment Rate Still On Track for 2009 (Unfortunately)
November 12, 2008 @ 01:31 PM | By Greg MacSweeney

Back on May 29 when University of San Francisco business professor Jon Fisher and I forecast 9 percent unemployment in 2009 based on a correlation between housing starts and job losses, a number of readers, colleagues and even my relatives scoffed at the idea. “Those are European unemployment numbers,” my cousin said. “Don’t you think that’s a little extreme?” asked a colleague.

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Private Bank Can Participate in TARP, Kashkari Says
November 11, 2008 @ 09:07 AM | By Greg MacSweeney

TARP Czar Neel Kashkari -- also known as the Interim Assistant Secretary of the Treasury for Financial Stability in the U.S. Treasury -- says that private banks can participate in the Troubled Asset Relief Program (TARP) and the revised loan to AIG sets restrictions on executive pay, golden parachutes and the bonus pool, according to Mary Thompson, CNBC.

Wall Street Firms To Cut Additional 15% of Workforce
November 06, 2008 @ 09:20 AM | By Greg MacSweeney

In a year that has already seen thousands of layoffs on Wall Street, word is that most large firms are planning another round of cuts by year end — some headcount reductions as high as 15 percent of the workforce. The pink slips at Goldman Sachs, amounting to 10-15 percent of the workforce, could be coming as early as this week. Layoffs inside of Merrill Lynch could amount to 10,000. At Morgan Stanley, most of the cuts will likely come from inside the investment bank. Even the relatively strong JPMorgan is considering another round of substantial cuts, reports CNBC’s Charlie Gasparino in the following video clip.

Rubin, Volcker, Summers and Geithner on Short List for Obama’s Treasury Secretary (CNBC)
November 05, 2008 @ 05:07 PM | By Greg MacSweeney

One of the major issues President-elect’s Barack Obama’s new Treasury Secretary will need to deal with is managing the TARP, in addition to a large domestic spending agenda that will be needed to support new programs. CNBC speculates that Robert Rubin, Paul Volcker, Lawrence Summers, and Timothy Geithner are on Obama’s short list for Treasury Secretary

Related Audio Blog (NPR)

Who Will President-Elect Obama Choose as Treasury Secretary?
November 05, 2008 @ 09:51 AM | By Greg MacSweeney

Many expect Barack Obama’s incoming administration will act quickly to name the next Treasury Secretary, who will be given the enormous task of helping to get the economy moving again. On the short list: Paul Volcker, Lawrence Summers, and Timothy Geithner, to name a few. Hear more in this Marketplace segment from American Public Media.

Unknown Credit Default Data Could Inspire Regulators (audio)
November 04, 2008 @ 08:16 AM | By Greg MacSweeney

Regulators might be shocked into action when it comes to credit default swaps (CDS). The value of all the credit default swaps could be $40 trillion or $50 trillion -- nobody knows for sure, reports Bob Moon for American Public Media’s Marketplace radio program.

Related audio: The Sky Didn't Fall on Lehman Swaps, Yet

Is the bail out deal 'too sweet' for banks? (video)
October 30, 2008 @ 08:29 AM | By Greg MacSweeney

When financially sound banks (those not burdened with so-called toxic assets) are running to the Fed to take part in the bail out, is that a sign that the deal is too sweet for the banks? Washington Post business columnist Steven Pearlstein explains why the government has a hard time enforcing lending rules in banks, and why it will take time to get the economic system moving again, in this video from MSNBC.

The Sky Didn't Fall on Lehman Swaps, Yet (audio)
October 24, 2008 @ 07:13 AM | By Greg MacSweeney

Hundreds of billions in losses were expected from Lehman Brothers' credit default mess. But the reality wasn't so disastrous after all -- more like $5 billion. But some experts say dealers are hiding CDS exposures and the real losses may be yet to come, according to this Marketplace segment from American Public Media.

Greenspan 'Shocked' by Breakdown (video)
October 24, 2008 @ 07:09 AM | By Greg MacSweeney

Former Fed Chairman Alan Greenspan said he was "shocked" by the breakdown in the credit system and told Congress the crisis was once in a century. (WSJ.com video)

Congressman Waxman No Longer Believes Markets Can Self Regulate (audio)
October 22, 2008 @ 08:56 AM | By Greg MacSweeney

Today, Congress is holding hearings on the role that the ratings agencies have played in the credit crisis. In this American Public Media Marketplace radio interview, U.S. Congressman Henry Waxman (D-CA) who chairs the House Committee on Oversight and Government Reform, discusses some of the causes of the crisis and what new regulations might be in store of banking. Hint: Congress is no longer listening to lobbying from Wall Street that contends that the markets can self regulate.

Merrill Lynch to Cut Thousands of IT and Operations Jobs
October 21, 2008 @ 10:14 AM | By Greg MacSweeney

Merrill Lynch expects to cut thousands of jobs as a result of its takeover by Bank of America, according to CEO John Thain. And most of those jobs will come from information technology, operations and "corporate functions," Thain said in a Bloomberg interview.

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Federal and NY State Prosecutors Investigating CDS Trading (NPR.org audio)
October 21, 2008 @ 08:42 AM | By Greg MacSweeney

Prosecutors are looking to see if traders manipulated the prices of credit default swaps in order to weaken confidence in financial companies, according to this report from NPR’s Marketplace Morning Report. Then the traders would short the financial stocks as the prices fell.

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HSBC Group COO Discusses Risk Management During the Financial Crisis (video)
October 16, 2008 @ 06:30 AM | By Greg MacSweeney
On the day that Lehman Brothers failed I spoke briefly with David Hodgkinson, group chief operating officer, at HSBC. Hodgkinson discusses how global banks need to work together to uncover potential risks and the role technology will play in uncovering new financial and market risks in the future. We were at the SIBOS 2008 conference in Vienna.

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BlackRock to the Rescue (NPR.org audio)
October 10, 2008 @ 10:24 AM | By Greg MacSweeney
BlackRock has long been a player in the mortgage backed securities market. In fact BlackRock's founder Laurence Fink played a large role in creating the market, according to Charles Murphy, adjunct professor at the NYU Stern School of Business in this NPR report. Now the Tresury Department may turn to BlackRock to take on some toxic assets as it tries to unfreeze the credit markets. continued...
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A Truly Global Crisis: "Bankz are Idiotz"
September 18, 2008 @ 08:09 AM | By Greg MacSweeney

You know the credit crisis is really big when a Bulgarian truck driver says in a Viennese bar in broken English "bankz are idiotz!"

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A Payments Conference where No One is Talking About Payments
September 15, 2008 @ 06:30 AM | By Greg MacSweeney

A bankruptcy filing trumps payments technology news, even at a payments conference.

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Roundtable Analyzes Hedge Funds Best Practices (Part 2)
July 25, 2008 @ 11:00 AM | By Greg MacSweeney

In a recent roundtable, panelists offered advice on why it is important for hedge funds to increase transparency, perform "checks and balances" on valuations, add dedicated risk management functions and have a business continuity plan for trading operations. Ultimately, these practices will help reduce hedge fund risk and improve investor protections.

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Citi's New CIO Faces High Expectations and High Pressure
July 09, 2008 @ 08:05 AM | By Greg MacSweeney

Not only will Citi's new CIO Marty Lippert also take on the duties of corporate operations and technology chief operating officer, but the responsibilities will come with extremely high expectations -- namely helping Citi right its ship.

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More Analysis On Fidelity's New CIOs
July 03, 2008 @ 08:05 AM | By Greg MacSweeney

In a follow up to our news article from yesterday about Fidelity Investments hiring Daniel Petrozzo as CIO to oversee overall technology strategy and Ronald E. DePoalo, as CIO of Fidelity Institutional Products Group, my colleague John Soat of InformationWeek has some more analysis and information on the moves on his blog. He noted that DePoalo, former managing director and CTO for Merrill Lynch Global Wealth Management, and Petrozzo, formerly co-global chief information officer and head of enterprise infrastructure at Morgan Stanley, may have left for greener pastures at Fidelity given all of the turmoil in the markets.

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Is a Low-Energy Consumption Chip Alternative on the Horizon?
June 30, 2008 @ 12:04 PM | By Greg MacSweeney

This isn't a blog about adjustable rate mortgages (ARMs). Rather, its about a newer type of chip technology from ARM Holdings, a UK-based company, that has the potential to lower energy use and extend battery life in smaller devices. Will the technology find its way to PCs and servers? And should Intel be worried?

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Drop in Housing Starts Indicates Unemployment Is Headed to 9%
May 29, 2008 @ 03:09 PM | By Greg MacSweeney

Where is the economy headed? Some "experts" say the economy is ready to rebound, after a short contraction. Others think that the economy is just at the beginning of a long and painful recession. However, the truth may be hidden in data that tracks housing starts, according to University of San Francisco business professor Jon Fisher, who previously founded and sold his online authentication company Bharosa to Oracle. Fisher contends the unemployment rate may be headed to 9 percent.

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XBRL: Accounting on Steroids (video)
May 22, 2008 @ 12:16 PM | By Greg MacSweeney

Now that the SEC has mandated that all large publically held companies file their financial reports in XBRL format, the push is on to implement the necessary technology, codes and processes. However, some are asking: "Just what is XBRL?" As they say, a picture is worth a thousand words. Well, what is a video -- a collection of moving pictures -- worth? Well, check out this simple, sometimes witty and informative video primer on the SEC's XBRL mandate from Just Systems:

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Welcome to the New Wall Street & Technology Website
March 24, 2008 @ 09:32 AM | By Greg MacSweeney

For the first time in many years, Wall Street & Technology has completely redesigned its Website. The new site makes searching for content much easier, with customized Google Search and easy to navigate content catagories.

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SWIFT Still Struggling to Attract Fund Managers
October 02, 2007 @ 10:03 AM | By Greg MacSweeney

Despite having almost half of its business come from the securities industry, SWIFT is still having a difficult time getting fund managers to join the network, SWIFT CEO Lazaro Campos told Wall Street & Technology in an exclusive interview at SWIFT's annual conference in Boston. In order to attract fund managers, Campos says SWIFT will focus on ease of use and a better fee structure.

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SIBOS 2007 Snippet: BT and Low Latency
October 01, 2007 @ 03:56 PM | By Greg MacSweeney

When you pick up a phone, you usually don't think about how the call gets from your handset to the person on the other end. But as trading requires lower and lower latency, many traders have started to think about how their orders and messages get from point A to B.

Many associate BT with just telephones in Britain, but the London-based company has almost equal in size in the U.S., according to Chris Pickles, manager of industry relations for BT Radianz. BT has 4,500 financial services clients in the US, another 4,500 in Europe and a couple of thousand in Asia, he reports. And, globally, BT handles 100 million messages per second.

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