from Counterparties:

Sanctions mean business

By Ben Walsh
June 4, 2014

BNP Paribas may soon find out the cost of allegedly violating US sanctions: about $10 billion. The US Justice Department is reportedly close to levying the biggest fine ever paid by a single bank against the French financial institution for doing business with countries like Sudan and Iran. The size of the punishment would far outstrip Credit Suisse’s $2.5 billion fine for helping Americans evade taxes. Like Credit Suisse, BNP is expected to plead guilty to criminal charges.

from Counterparties:

FIFA’s fouls

By Ben Walsh
June 2, 2014

Soccer’s international governing body had a really bad weekend. Twelve days before FIFA kicks off the world’s largest sporting event in Brazil, the New York Timespublished details of alleged match fixing in the run up to the last World Cup in South Africa. Then the Sunday Times (paywall: see the Guardian) released the latest and most damningly detailed report of corruption in Qatar’s successful bid to host the 2022 World Cup.

from The Great Debate:

What’s a leveraged ETF and what makes it dangerous?

By Ben Walsh
May 30, 2014

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Larry Fink is sounding the alarm. The chairman and CEO of $4.4 trillion asset manager BlackRock is worried about leveraged ETFs (exchange-traded funds). Fink thinks they could “blow up the industry.” His statement is a little unclear, but the industry he's referring to is probably ETFs themselves, not the global financial system.

from Counterparties:

GDFlop

By Ben Walsh
May 29, 2014

US economic growth has gone negative for the first time in three years. Revisions to the estimate of first quarter GDP, out this morning, put growth for the first three months of the year an annual rate of -1%. The initial estimate, released at the end of April, had the economy growing just barely, at an annual rate of just 0.1%.

from Counterparties:

Eating cheap

By Ben Walsh
May 23, 2014

Whatever you're spending on this year's Memorial Day barbecue, you can expect next year’s to be even more expensive. The USDA forecasts that beef prices will rise between 5.5% and 6.5% by the end of 2014, after already increasing just under 10% so far this year. Overall food prices are projected to rise at between 2.5% and 3.5%.

from Counterparties:

China’s other internet IPO

By Ben Walsh
May 22, 2014

The Chinese internet IPO you haven’t been waiting for is finally here. JD.com, whichBloomberg Businessweek’s Bruce Einhorn calls “the closest thing to a Chinese version of Amazon.com”, priced its $1.8 billion offering at $19 a share, above the initial $16 to $18 range. It opened today on the NASDAQ at $21.75 and gained 10% in its first day of trading, valuing the company at approximately $30 billion.

from Counterparties:

Glocalization hits home

By Ben Walsh
May 21, 2014

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For a select few real estate markets, “location, location, location” is taking on a new meaning. Price is no longer a block by block or neighborhood by neighborhood consideration. There is, says James Surowiecki, an emerging global market for real estate. The case study is Vancouver, which has the median income of Reno but the costly property prices of San Francisco:

from Counterparties:

Suisse Crime and Punishment

By Ben Walsh
May 20, 2014

Credit Suisse is the first bank in decades to admit to criminal charges. It has pleaded guilty to helping Americans evade taxes and agreed to pay a $2.5 billion fine.

from Counterparties:

Job insecurity

By Ben Walsh
May 19, 2014

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Even positive news about long-term unemployment is depressing. 3.4 millionAmericans have been out of work for more than 27 weeks, a million less than last year. (27 weeks is the widely used definition of long-term joblessness.) Despite its recent decline, there’s still more long-term unemployment in the U.S now than in any pre-recession period since data-keeping began in 1948.

from Counterparties:

Testing Stress Test

By Ben Walsh
May 12, 2014

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The Tim Geithner legacy project – which began in January 2013 – is entering its third phase: memoir release. Stress Test: Reflections on Financial Crises is out today. Phase one, receiving a glowing review from the president, and two, establishingfavorable consensus opinion, were completed before Geithner even left his role as secretary of the Treasury.