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Contents contributed and discussions participated by kevinan108

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Kevin Mao

Key Facts - 10 views

started by Kevin Mao on 18 Apr 12 7 follow-ups, last by kevinan108 on 18 May 12
  • kevinan108
    #5 kevinan108 on 18 May 12
     
    Occupy Wall Street- OWS was a left wing response to the Tea Party. They were upset over Obama's policies towards Wall Street and they were upset by Wall Street's actions. OWS also seeked to address concerns over the growing inequality gap in the U.S
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  • kevinan108
    #6 kevinan108 on 18 May 12
     
    French/Greek Elections- The recent elections in Europe have demonstrated that Europeans are fed up with austerity and have voted out leaders in charge of austerity. New leader Francois Hollande has promised to levy 70% income taxes on people making over $1 million dollars. Greece still cannot decide on a leader. As a result there has been a growing run on the banks in Greece and Spain and there are worries whether Greece will stay with the euro or leave.
  • kevinan108
    #8 kevinan108 on 18 May 12
     
    Volcker Rule- A rule in the Dodd-Frank Financial Reform bill that stops banks from making speculative investments that do not benefit its customers. It bans proprietary trading which is when banks use its own money to make risky bets.
  • kevinan108
    #9 kevinan108 on 18 May 12
     
    Dodd-Frank Financial Reform Bill- A bill that is intended to enforce new regulations on Wall Street to prevent the Financial Crisis from happening again. Many aspects of the bill only come into effect later on.
  • kevinan108
    #10 kevinan108 on 18 May 12
     
    Paul Krugman- Professor of economics at Princeton University and columnist at the New York Times. He is in favor of increased regulation of Wall Street
  • kevinan108
    #11 kevinan108 on 18 May 12
     
    Securities and Exchange Commission- The agency responsible for enforcing laws involving the stock market and Wall Street. the SEC was created in 1934 after the Great Depression.
  • kevinan108
    #13 kevinan108 on 18 May 12
     
    Jamie Dimon- CEO of JP Morgan since 2005. He has been a vocal advocate for less regulation on Wall Street. Recently, JP Morgan has lost $3 billion in derivatives trading. The FBI is investigating his company
  • kevinan108
    #14 kevinan108 on 18 May 12
     
    Ina Drew- Chief Investment Officer of JP Morgan. She was one of the few women in leadership roles on Wall Street. She was fired after her actions cost JP Morgan $3 billion dollars. She may receive $14.7 million in termination compensation
kevinan108

Why We Regulate - NYTimes.com - 0 views

www.nytimes.com/...krugman-why-we-regulate.html

banking America JP Morgan derivatives PaulKrugman

shared by kevinan108 on 18 May 12 - No Cached
  • He has, however, been fond of giving Gatewood-like speeches about how he and his colleagues know what they’re doing, and don’t need the government looking over their shoulders.
  • So there’s a large heap of poetic justice — and a major policy lesson — in JPMorgan’s shock announcement that it somehow managed to lose $2 billion in a failed bit of financial wheeling-dealing.
  • In the 1930s, after the mother of all banking panics, we arrived at a workable solution, involving both guarantees and oversight.
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  • It probably won’t last; I expect Wall Street to be back to its usual arrogance within weeks if not days.
  • As far as we can tell, it used the market for derivatives — complex financial instruments — to make a huge bet on the safety of corporate debt, something like the bets that the insurer A.I.G. made on housing debt a few years ago.
  • This system gave us half a century of relative financial stability. Eventually, however, the lessons of history were forgotten.
  • No loopholes, no exemptions, no exceptions, no compromise, no ambiguous language. Until Congress reinstates it, moral hazard governs and the losers will be the Americans taxpayers. History will keep repeating itself unless politics and money are taken out of the equation.
kevinan108

China's easing aimed at housing market - MarketWatch - 0 views

www.marketwatch.com/...d-at-housing-market-2012-05-14

China housing bubble cooling slowgrowth banks

shared by kevinan108 on 18 May 12 - No Cached
  • The People’s Bank of China announced on Saturday it plans to lower then the ratio of reserves bank must set aside as deposits at the central bank by a half percentage point, effective Friday.
  • Investment in real estate was up 18.7% in the first four months of the year, cooling significantly from a 23.5% gain in the first three months of the year, according to official figures released Friday. The data weren’t broken down on a monthly basis.
  • The numbers indicated property developers were cutting back on land purchases, with outlays on sites of 182 billion yuan ($28.81 billion) in the January-to-April period, a drop of nearly 14% from a year earlier.
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  • Standard Chartered said developers’ concerns over the property market were reflected in data showing residential investment hitting the wall in April, growing just 4% during the month, compared to a 15.1% year-on-year rise in March.
kevinan108

HSBC chief to subject UK banking operation to performance tests | Business | The Guardian - 0 views

www.guardian.co.uk/...ng-operation-performance-tests

bank HSBC Guardian UK retail banking stresstest

shared by kevinan108 on 18 May 12 - No Cached
  • As he gave an update of the bank's strategy – which has led to 14,000 job cuts as he cuts costs to make the bank more efficient – Gulliver said the UK business would be subjected to his performance tests once it was known how the final details of the Independent Commission on Banking (ICB) were implemented.
  • Gulliver described the UK as essential for retail banking and he said on Thursday that the business was one of the best performing, describing it as a "home" market.
  • He is intending to achieve $3.5bn (£2bn) of savings within three years to bolster the bank's return on equity to 12-15%. It was 11% last year.
kevinan108

Rattled Greeks not alone in massive bank savings exodus | Economy | News | Financial Post - 0 views

business.financialpost.com/...in-massive-bank-savings-exodus

bank EuropeanCrisis Greece runonbanks deposits

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  • Worries about a run on Greek banks has rattled Athens this week, after savers withdrew at least 700 million euros on Monday alone, according to minutes of Papoulias’s comments to political leaders posted on the presidency’s website.
  • Greece’s banks have lost 72 billion euros in deposits since the start of 2010, or about 30%, according to data compiled by Thomson Reuters.
  • And on Thursday, Spain’s Bankia was reported to have seen more than 1 billion euros drained by its customers in the past week.
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  • Cash flooded into Britain; more than 140 billion euros was deposited in four big banks alone. The UK benefits from its position outside the eurozone and its Asia-focused banks HSBC and Standard Chartered are seen as particular safe-havens. Other banks to see big inflows included Barclays, Germany’s Deutsche Bank, Switzerland’s Credit Suisse and UBS and Russia’s Sberbank and VTB.
kevinan108

JPMorgan's Trading Loss Is Said to Rise at Least 50% - 0 views

dealbook.nytimes.com/...ss-is-said-to-rise-at-least-50

banking America NYtimes JP Morgan derivatives

shared by kevinan108 on 18 May 12 - No Cached
  • The trading losses suffered by JPMorgan Chase have surged in recent days, surpassing the bank’s initial $2 billion estimate by at least $1 billion, according to people with knowledge of the losses.
  • In March, the company raised the quarterly dividend by 5 cents, to 30 cents, which will cost the bank about $190 million more this quarter.
  • At the bank’s annual meeting in Tampa, Fla., on Tuesday, Mr. Dimon did not definitively rule out cutting the dividend, although he said that he “hoped” it would not be cut.
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  • “JPMorgan Chase has a big hedge fund inside a commercial bank,” said Mark Williams, a professor of finance at Boston University, who also served as a Federal Reserve bank examiner. “They should be taking in deposits and making loans, not taking large speculative bets.”
  • In its simplest form, traders said, the complex position assembled by the bank included a bullish bet on an index of investment-grade corporate debt, later paired with a bearish bet on high-yield securities, achieved by selling insurance contracts known as credit-default swaps.
  • kevinan108 on 18 May 12
     
    The trading losses suffered by JPMorgan Chase have surged in recent days, surpassing the bank's initial $2 billion estimate by at least $1 billion, according to people with knowledge of the losses. When Jamie Dimon, JPMorgan's chief executive, announced the losses last Thursday, he indicated they could double within the next few quarters.
kevinan108

Spain banking sector shaken by report of bank run | CanadianBusiness.com - 0 views

www.canadianbusiness.com/...r-shaken-by-report-of-bank-run

Spain EuropeanCrisis banks banking nationalization runonbanks

shared by kevinan108 on 17 May 12 - No Cached
  • Confidence in Spain's banks and its teetering economy was shaken Thursday after a newspaper reported that depositors were rushing to withdraw their money from Bankia, a troubled bank that was effectively nationalized just one week ago.
  • Adding to the anxiety, rating agency Moody's downgraded its credit ratings on Spanish banks.
  • Political turmoil in Greece has increased the likelihood that it could leave the 17-country monetary union, a move that could have ripple effects throughout Europe and the world's financial markets.
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  • Bankia SA, the country's fourth-largest lender, saw its shares fall as much as 27 percent during trading in Madrid after the El Mundo newspaper reported the bank was hit with more than €1 billion ($1.27 billion) of withdrawals since the government announced the takeover.
  • Greek president Karolos Papoulias warned party leaders during unsuccessful coalition talks that about €700 million ($898 million) in deposits have flown out of Greek banks since the May 6 elections, according to a report from Greece's central bank governor, George Provopoulos
  • the interest rate on Spanish 10-year bonds stood at a worryingly high 6.29 percent. It has risen sharply from below 5 percent in March and is edging toward the 7 percent mark that is considered unsustainable in the longer term.
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