Wall Street Warned by U.S. Regulators to Speed Up Libor Exit
Jesse Hamilton, Alex Harris, and Christopher Condon, 11 June 2021
Wall Street banks must speed up their efforts to stop using Libor, regulators said Friday, issuing one of their sternest warnings yet about abandoning the scandal-plagued benchmark.
From Treasury Secretary Janet Yellen to Federal Reserve Chairman Jerome Powell, watchdogs made clear during a meeting of the Financial Stability Oversight Council that time is running out. The admonishment — coming from the heads of all of the U.S.’s most powerful financial agencies — marked a remarkably high-profile push to light a fire under banks including Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs Group Inc. Continue reading “Article: Wall Street Warned by U.S. Regulators to Speed Up Libor Exit”
Libor Contracts Caught in Limbo Spur Calls for Congressional Fix
Alexandra Harris, 15 April 2021
President Joe Biden’s administration and the Federal Reserve are pushing for U.S. lawmakers to ease Wall Street’s transition away from the London interbank offered rate and help head off legal headaches for many contracts that risk being left in limbo under present plans.
In testimony set to be delivered at a House Financial Services subcommittee meeting Thursday, officials from both the Treasury Department and the Fed will voice support for federal legislation that would allow for an orderly way to shift existing financial products from the discredited set of reference rates, which currently underpins trillions of dollars in securities, derivatives and other contracts. Continue reading “Article: Libor Contracts Caught in Limbo Spur Calls for Congressional Fix”
Einhorn: “The Market Is Fractured And In The Process Of Breaking Completely”
TYLER DURDEN, 15 April 2021
In many ways, David Einhorn’s Greenlight appears to be back to its “new normal” – in a letter sent to investors, Einhorn writes that Greenlight again underperformed the market and returned -0.1% in the first quarter, badly underperforming the 6.2% return for the S&P 500 index, before proceeding to bash the Fed, broken markets, Chamath and Elon, the basket of short stocks and much more.
That said, even though as Einhorn writes Greenlight made only a handful of portfolio changes and essentially broke even, “a lot happened. In general, the investment environment – especially from mid-February through the end of the quarter – was favorable as value outperformed growth, and interest rates and inflation expectations rose.” Continue reading “Article: Einhorn: “The Market Is Fractured And In The Process Of Breaking Completely””
The Number One Threat To Global Finance? Cyber Attacks
PYMNTS, 13 April 2021
Cyberattacks are the greatest threat to the world’s financial system, Federal Reserve Chairman Jerome Powell said in an interview with CBS News this week. Speaking to “60 Minutes” on Sunday (April 11), Powell said the risks posed by cybercriminals are greater than the lending and liquidity troubles that triggered the 2008 financial crisis.
“There are scenarios in which a large financial institution would lose the ability to track the payments that it’s making, where you would have a part of the financial system come to a halt, or perhaps even a broad part,” he said. “And so, we spend so much time and energy and money guarding against these things. There are cyberattacks every day on all major institutions now. That’s a big part of the threat picture in today’s world.” Continue reading “Article: The Number One Threat To Global Finance? Cyber Attacks”
JPMorgan’s Dimon Admits “Something Has Gone Terribly Wrong” In America… And China Knows It
TYLER DURDEN, 07 April 2021
As his bank tries to offload big blocks of Manhattan real estate, JPMorgan CEO Jamie Dimon proclaimed in his latest annual letter to shareholders, published Wednesday morning, that the economic expansion in the US could run through 2023, which would justify lofty equity valuations which recently pushed the S&P 500 north of 4K.
And the CEO who once called for the US to raise taxes on the rich and adopt more explicitly socialist policies to expand access to higher education, housing and child care, praised the federal government’s response to the economic crisis caused by the COVID pandemic. Consumers who are now flush with savings will help drive an economic boom, Dimon wrote in his 34K-word missive.
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Could I be missing something? 4+ bear potential cases against gold and silver
Lobo Tiggre, 06 April 2021
Novelist-philosopher Ayn Rand famously admonished us to “check our premises.” That’s a fancy way of saying that it pays to ask ourselves if we might be missing something—especially when confronted with a situation that makes no sense.
The nonsensical investment reality of the day is that signs of rising inflation are causing the price of gold—the world’s best inflation hedge for thousands of years—to fall.
I’ve explained why this is happening several times: nominal rates are rising in response to expectations of higher inflation faster than CPI. Anyone can look at their budget over the years and see that official CPI is bunk, but it’s the number policymakers, businesses, and most investors use. Continue reading “Article: Could I be missing something? 4+ bear potential cases against gold and silver”
BCH Price Analysis: Consolidation Range Targets Breakout Past $630
Tomiwabold Olajide, 06 April 2021
BCH Price rose over 10% on Monday, settling at $625 as at the time of writing. Bitcoin cash turned into a sideways consolidation in late February after hitting yearly highs at $773. While it’s recovering today, the barrier at $630 was strong and kept the BCH price confined below this level. Thus, it may be too early to call a breakout yet due to the weak upside momentum. Instead, the consolidation may likely extend further for a while. Currently, BCH is trading in the upper part of its consolidation range while targetting a breakout past the $630 barrier. Continue reading “Article: BCH Price Analysis: Consolidation Range Targets Breakout Past $630”
US courts dismiss manipulation allegations involving Bitcoin Cash
Shaurya Malwa, 02 April 2021
US courts dismissed an antitrust lawsuit that alleged prominent investors and individuals schemed to hijack the Bitcoin Cash network, the world’s thirteenth largest crypto network by market cap.
A controversy around Bitcoin Cash
The complaint, amended in March 2020 and filed by crypto company United American Corp (UAC), named Bitcoin Cash proponent Roger Ver, crypto exchange Kraken founder Jesse Powell, BTC mining giant Bitmain and CEO Jihan Wu, and Bitcoin Cash developers Shammah Chancellor and Jason Cox as the alleged participants in the scheme.
UAC first brought its suit in December 2018 and alleging the named individuals had effectively manipulated and devalued Bitcoin and pushed the firm out of the network after it had invested over $4 million. Continue reading “Article: US courts dismiss manipulation allegations involving Bitcoin Cash”
High Profile Crypto Execs Dodge Bitcoin Cash ‘Hijack’ Lawsuit
Andrew Asmakov, 02 April 2021
A federal court in Florida has dismissed an antitrust suit filed against Bitcoin.com founder Roger Ver and several other prominent figures in the crypto industry, accused of market manipulation during a contentious split of the Bitcoin Cash network in November 2018, Law360 reported.
Other defendants in the case included Kraken CEO Jesse Powell, former CEO of Bitmain Technologies Jihan Wu, as well as Bitcoin Cash developers Shammah Chancellor and Jason Cox.
First filed by United American Corp (UAC) in December 2018 and amended in March 2020, the lawsuit claimed that the defendants colluded to manipulate the cryptocurrency market to favor Bitcoin Cash as some participants on the network were engaged in creating a competing clone called Bitcoin SV. Continue reading “Article: High Profile Crypto Execs Dodge Bitcoin Cash ‘Hijack’ Lawsuit”
Amazon, Stock Compensation & Equity Valuation
TYLER DURDEN, 01 April 2021
Bloomberg News recently published an article, Amazon Fights Union Drive With Fact-Free Bombast, discussing Amazon’s alleged use of misinformation to prevent employees from unionizing. In the same manner Kailash recused itself from having a “bull” or “bear” thesis on Bitcoin, we will recuse ourselves from any discussion of unions. What we would like to draw our readers’ attention to however is the method by which Amazon pays many senior executives. In the Bloomberg article it noted that the former head of Amazon’s logistics business was awarded stock compensation worth $160 million dollars. Continue reading “Article: Amazon, Stock Compensation & Equity Valuation”
FD Funds Management Backed by Fidelity Files for Bitcoin ETF with SEC
Steve Muchoki, 25 March 2021
Fidelity Investments, an American multinational financial services corporation based in Boston, Massachusetts, through its subsidiary FD Funds Management has filed for a Bitcoin ETF with the United States Securities and Exchange Commission. According to Form S-1 filed by Fidelity Investments, the ETF will be called Wise Origin Bitcoin Trust, if the SEC approves it.
Notably, the United States Securities and Exchange Commission has rejected two other applications for a Bitcoin ETF. According to the commission, Bitcoin is a very volatile asset that may put investors’ capital at risk.
However, with already two Bitcoin ETFs approved in the Canadian market, there are high chances the United States will move towards considering a similar move. Furthermore, more institutional investors are showing the will to hold digital assets as a hedge against the deflationary fiat currencies. Continue reading “Article: FD Funds Management Backed by Fidelity Files for Bitcoin ETF with SEC”
Senator Ossoff Drops a Bombshell: “The 12 or 13 Largest Banks” Got the Trillions from the Fed’s Repo Loans Last Year
Pam Martens and Russ Martens: March 3, 2021 ~ Wall Street on Parade
“Nearly all the money went to too-big-to-fail institutions. For example, in one emergency lending program, the Fed put out $9 trillion and over two-thirds of the money went to just three institutions: Citigroup, Morgan Stanley and Merrill Lynch.
“Those loans were made available at rock bottom interest rates – in many cases under 1 percent.”
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The Stock Market Is Broken, Now For All To See
Authored by Wolf Richter via WolfStreet.com,
The historic short squeeze, engineered by a bunch of deeply cynical small traders, exposed just how rigged the market has been…
Jerome H. Powell took office as Chair of the Board of Governors of the Federal Reserve System on February 5, 2018, for a four-year term. Mr. Powell also serves as Chairman of the Federal Open Market Committee. Prior to his appointment to the Board, Powell was a visiting scholar at the Bipartisan Policy Center in Washington, D.C. From 1997 through 2005, Powell was a partner at The Carlyle Group. Powell served as an Assistant Secretary and as Under Secretary of the U.S. Department of the Treasury under President George H.W. Bush. Prior to joining the Bush administration, Mr. Powell worked as a lawyer and investment banker in New York City. He received an AB in politics from Princeton University in 1975 and earned a law degree from Georgetown University in 1979. While at Georgetown, he was editor-in-chief of the Georgetown Law Journal.
Board of Governors of the Federal Reserve System