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Jun 4, 2012

Citadel accuses Jump Trading of stealing secrets

June 4 (Reuters) – Citadel, one of the world’s largest hedge
fund managers, has accused a rival Chicago high-frequency
trading firm of stealing its trading programs.

It said in a court petition that at least one its former
employees stole trading algorithms and brought them to Jump
Trading, a firm that employs 325 people in Chicago, London and
Singapore.

May 31, 2012

Insight: Gains that funds made on bets by JPMorgan whale may be limited

By Dan Wilchins

(Reuters) – JPMorgan Chase & Co’s losing bets in credit derivatives were so huge that one of its traders was known as “the London whale” and the hedge funds that attacked him have often been portrayed as harpooners who made a killing. But the story, it turns out, is more complicated than that.

According to hedge fund managers and traders close to the struggle, the bank’s losses – more than $2 billion – may not lead to stunning returns for the funds that were on the other side of the transactions.

May 31, 2012

Gains that funds made on bets by JPMorgan whale may be limited

May 31 (Reuters) – JPMorgan Chase & Co’s losing bets
in credit derivatives were so huge that one of its traders was
known as “the London whale” and the hedge funds that attacked
him have often been portrayed as harpooners who made a killing.
But the story, it turns out, is more complicated than that.

According to hedge fund managers and traders close to the
struggle, the bank’s losses – more than $2 billion – may not
lead to stunning returns for the funds that were on the other
side of the transactions.

Nov 5, 2011

INSIGHT: Did Corzine’s risk taking cripple MF Global?

NEW YORK (Reuters) – In early April, Jon Corzine was in a tough spot. MF Global, the company he had run for the previous year, was about to post a fourth-quarter loss, marking its fourth successive fiscal year of red ink.

For the former Goldman Sachs chief, it was a setback to his efforts to turn MF Global around. He had just announced a plan for the bank to boost trading risk by holding more assets on its books, both to help customers and to bet on markets.

Oct 31, 2011

Insight: Did Corzine’s risk taking cripple MF Global?

NEW YORK (Reuters) – In early April, Jon Corzine was in a tough spot. MF Global, the company he had run for the previous year, was about to post a fourth-quarter loss, marking its fourth successive fiscal year of red ink.

For the former Goldman Sachs chief, it was a setback to his efforts to turn MF Global around. He had just announced a plan for the bank to boost trading risk by holding more assets on its books, both to help customers and to bet on markets.

Oct 31, 2011

Did Corzine’s risk taking cripple MF Global?

NEW YORK, Oct 31 (Reuters) – In early April, Jon Corzine was
in a tough spot. MF Global, the company he had run for the
previous year, was about to post a fourth-quarter loss, marking
its fourth successive fiscal year of red ink.

For the former Goldman Sachs chief, it was a setback to his
efforts to turn MF Global around. He had just announced a plan
for the bank to boost trading risk by holding more assets on its
books, both to help customers and to bet on markets.

Oct 4, 2011

Insight: Chase’s card chief rebuilds business part by part

NEW YORK (Reuters) – Gordon Smith, credit card chief of JPMorgan Chase, often spends his weekends at his northern New Jersey home, rebuilding the engines of vintage cars.

As he takes apart an engine, he puts pieces in plastic Ziploc bags to keep track of where they belong. He videotapes the disassembly, in case he forgets how to rebuild.

Sep 15, 2011

Insight: BofA cuts foretell a downturn in branch banking

By Dan Wilchins and Joe Rauch

(Reuters) – To see why Bank of America Corp can cut 30,000 jobs from its consumer banking business, just stop by one of the 14,000 new automatic teller machines it has installed over the last three years.

The machines scan checks and cash and allow deposits to be reflected in customer accounts the same day. A scanning ATM is faster and less prone to processing error than a teller.

Sep 15, 2011

BofA cuts foretell a downturn in branch banking

Sept 15 (Reuters) – To see why Bank of America Corp (BAC.N: Quote, Profile, Research, Stock Buzz)
can cut 30,000 jobs from its consumer banking business, just
stop by one of the 14,000 new automatic teller machines it has
installed over the last three years.

The machines scan checks and cash and allow deposits to be
reflected in customer accounts the same day. A scanning ATM is
faster and less prone to processing error than a teller.

Sep 13, 2011

How to play it: Investing in cost-cutting banks

NEW YORK (Reuters) – Three years after the financial crisis slammed the global financial system, banks are still trying to put tough times behind.

An aggressive new round of job reductions should lower costs and help the bottom line. Major banks have recently announced they are eliminating some 100,000 jobs.

    • About Dan

      "Dan Wilchins oversees a team of reporters covering U.S. commercial banks, investment banks, and insurance companies. Based in New York, he has also covered securitization, derivative markets, and corporate bonds."
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