We Will Always Have ‘Too-Big-to-Fail’ Banks. So…
“Make it so that the CEO of an institution that fails, or goes to the government and needs help, really gets destroyed financially.”
Stocks tanked and the pundits came out…
Fortune put out its annual list of the 50 most powerful women in business today.
Indra Nooyi of Pepsi is No. 1.
Safra Catz of Oracle is the highest paid at $42 million.
Marissa Mayer of Google is the youngest at 34.
And the biggest addition to the list is Sue Wagner of BlackRock.
The top 10 are:
1. Indra Nooyi, Chairman and CEO, PepsiCo
2. Irene Rosenfeld, Chairman and CEO, Kraft Foods
3. Pat Woertz, Chairman, CEO and President, Archer Daniels Midland
4. Angela …
Here’s one reason the price of oil is destined to fall, at least a little bit. As the price of a barrel rises, the return on buying oil on the spot market, then selling it forward has dropped to zero:
WSJ’s Liam Denning: Energy economist Phil Verleger demonstrates how lucrative this can be. On March 1, the cash price of light, sweet crude was $40.15 a barrel, while the 12-month forward contract sold for $50.26. Assume an investor bought the physical …
The Russian may no longer be the wealthiest in the football world, but at least he has his hot girlfriend and their place on the moon.
CNN: Russian billionaire Abramovich has slipped to third place behind Manchester City’s new owner Sheikh Mansour bin Zayed Al Nahyan.
Sheikh Mansour, a member of the Abu Dhabi royal family, has a fortune of £15 billion ($22.04B), according to the Football Rich List, researched and published by FourFourTwo magazine.
Abramovich has …
The New York Times chronicles a now-familiar tale of incompetence and greed that led to the (all but) destruction of another legendary global financial services firm:
Oblivious CEO (Chuck Prince)
Idiot risk manager who assured oblivious CEO that everything was great until the day it wasn’t (David Bushnell)
Inadequate risk controls, wet-noodle risk managers pushed around by big swinging dicks who made 100X as much money
Trading boss incented …
From The Economist:
An important reason why the American economy has been so resilient and recessions so mild since 1982 is the energy of consumers. Their spending has been remarkably stable, not only because drops in employment and income have been less severe than of old, but also because they have been willing and able to borrow. The long rise in asset prices—first of stocks, then of houses—raised consumers’ net worth and made saving seem less necessary. And borrowing became easier, …
NBC News reports Obama will nominate: Tim Geithner.
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Most major global markets now point to deflation
- Consumers are not buying houses because they think that house prices will be lower
- Consumption has screeched to a halt
- 1% growth in online commerce
Paul Kedrosky points to a graph on Bloomberg that does seem to suggest that deflation may be more of a reality than widely expected.
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We buy their cars, helping them to annual revenues of £5.2 billion, we give them the cache of the uber trendy and make them mystical in the eyes of the civilian populace, and this is how they treat us. You should be aware of Porsche’s recent moves to squeeze the short sellers on Volkswagen’s shares which came to light this week.
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An ad billboard has caused outrage in a Chinese city by featuring what appears to be a man hanging from a rope.
The advertisement, on top of the Yinji Shopping Mall in Zhengzhou, actually features a mannequin hanging from the top of the billboard.
In a reference to the global financial crisis, it reads: “It’s better to invest money here than put it into the stock market.”
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The reliable bellwether of economic stability, Big Oil; BP in this case posted records profits $10 billion a 148% surge over last years 3rd quarter results.
Just for clarification. That’s $10 Billion
In the first nine months of this year, BP’s profits are up 54 per cent at $23 billion. just to put this into context, in the same day the BoE reporting the combined losses of all banks, financial institutions et al total upto $2.8 trillion dollars, and even with record …
If you dont like words…
check out some delicious chart porn, its a historical overview which explains why your going to get about 5% of your bonus this year.
source
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Flushed with the success of securing $40 billion of settlements from Merrill Lynch, UBS and Citigroup, US state regulators are about to turn the screw on banks accused of mis-selling auction rate securities (ARS).
If the almighty credit crunch wasn’t enough to obliterate bank stock prices, the recent wins in the US will.
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One year after the credit crunch began Fortune wrote an interesting article about those who saw trouble ahead and those who just ended up in trouble
- read article here
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Societe Generale disclosed last week that it had recorded a 45% drop in new accounts in a sign that customers are being scared away by the biggest rogue trading scandal in history. Jerome Kervial
Six months ago the junior trader, was accused of losing almost €5 billion, SoGen; France’s second largest bank said it registered 23k new French accounts in the second quarter. The figure for the same period last year was 45k;
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