Wall Street & Technology: Blog

Cloud Vendors: Are You Listening?

Fri, 05 Mar 2010 12:30:40 -0500

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 ...

Why Government Regulators Seem Unprepared

Wed, 24 Feb 2010 11:29:27 -0500

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

Fri, 19 Feb 2010 10:14:55 -0500

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

Thu, 18 Feb 2010 10:48:24 -0500

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

Fri, 12 Feb 2010 10:41:09 -0500

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

Fri, 12 Feb 2010 10:15:48 -0500

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

Thu, 11 Feb 2010 09:02:24 -0500

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

Fri, 05 Feb 2010 07:14:50 -0500

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

Fri, 05 Feb 2010 07:12:32 -0500

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

Fri, 29 Jan 2010 07:52:32 -0500

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?

Wed, 27 Jan 2010 10:02:21 -0500

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

Tue, 26 Jan 2010 11:32:13 -0500

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

Tue, 12 Jan 2010 10:25:59 -0500

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

Tue, 12 Jan 2010 10:24:19 -0500

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

Fri, 08 Jan 2010 10:28:34 -0500

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.