Lauren's Feed
Aug 16, 2013

Analysis: Wall Street clashes with regulators over repo market reforms

WASHINGTON/NEW YORK (Reuters) – Wall Street banks are arguing that a proposal from U.S. regulators intended to rein in risk taking could severely hurt the $7 trillion repurchase market, a critical source of short-term loans in the financial system.

A new rule, known as the supplemental leverage ratio, is being proposed by the Federal Reserve, but also globally, as regulators seek to control a market they see as unstable enough to cause a new financial crisis.

Aug 16, 2013

Wall St clashes with regulators over repo market reforms

WASHINGTON/NEW YORK, Aug 16 (Reuters) – Wall Street banks
are arguing that a proposal from U.S. regulators intended to
rein in risk taking could severely hurt the $7 trillion
repurchase market, a critical source of short-term loans in the
financial system.

A new rule, known as the supplemental leverage ratio, is
being proposed by the Federal Reserve, but also globally, as
regulators seek to control a market they see as unstable enough
to cause a new financial crisis.

Aug 6, 2013

Morgan Stanley may sell minority stake in commodities unit

NEW YORK, Aug 6 (Reuters) – Morgan Stanley is
exploring various options for its multibillion dollar
commodities business, with the sale of a minority stake being
one possibility, three sources familiar with the situation said
on Monday.

The business, which includes three U.S. power plants, a 49
percent stake in a tanker fleet and a pipeline and logistics
firm, has been shopped for more than a year. But the bank is not
in any hurry to sell a stake at any price and is not close to a
deal, the sources said.

Jul 31, 2013

Under fire, Goldman offers way round warehouse lines

NEW YORK, July 31 (Reuters) – Goldman Sachs responded
to mounting political pressure and regulatory scrutiny of its
Metro International metals business, by offering customers
immediate access to aluminum stored in its warehouses on
Wednesday.

In a statement outlining the bank’s proposal to cut waiting
times at all London Metal Exchange warehouses, Goldman Sachs
said it would make aluminum immediately available to major
consumers.

Jul 25, 2013

SAC gets cut by ‘edge,’ a word Cohen hated

NEW YORK (Reuters) – The word that Steve Cohen hates is coming back to bite him.

A federal indictment on Thursday of the billionaire hedge fund manager’s firm, SAC Capital Advisors, uses the word “edge” 14 times to describe the way its traders sought information or insight that no one else on Wall Street had.

Jul 25, 2013

Lazard profit up on higher M&A advisory revenue

By Lauren Tara LaCapra

(Reuters) – Lazard Ltd (LAZ.N: Quote, Profile, Research, Stock Buzz) reported a higher-than-expected quarterly profit on Thursday as the investment bank’s merger and acquisition advisory business posted solid growth despite a subdued market for deals.

M&A around the world slowed in the 2013 first half to the most sluggish pace since 2009, Thomson Reuters data show.

Jul 24, 2013

Tourre on stand says email in SEC case ‘not accurate’

NEW YORK (Reuters) – Fabrice Tourre, the former Goldman Sachs trader accused of secretly helping the hedge fund of billionaire John Paulson construct a $2 billion deal it could bet against, said Wednesday an email he sent to a key participant in the deal was inaccurate.

Tourre, 34, made the statement after taking the stand in the eighth day of what has become the highest-profile trial to come out of the U.S. Securities and Exchange Commission’s investigations of the 2008 financial crisis.

Jul 21, 2013

Insight: Resigned to reform, Wall St tries a different tack in DC

By Lauren Tara LaCapra and Douwe Miedema

(Reuters) – In March, as U.S. bank regulators were framing a new rule that would affect the $630 trillion derivatives market, JPMorgan Chase & Co sent five bankers from New York and London to Washington to raise some fine points about the impact of the financial reform.

In a jargon-laden, 23-slide presentation, the JPMorgan bankers walked regulators through the complexities of how their decisions would affect the arcane market, according to documents and a person familiar with the meeting.

Jul 21, 2013

Resigned to reform, Wall St tries a different tack in DC

July 21 (Reuters) – In March, as U.S. bank regulators were
framing a new rule that would affect the $630 trillion
derivatives market, JPMorgan Chase & Co sent five
bankers from New York and London to Washington to raise some
fine points about the impact of the financial reform.

In a jargon-laden, 23-slide presentation, the JPMorgan
bankers walked regulators through the complexities of how their
decisions would affect the arcane market, according to documents
and a person familiar with the meeting.

Jul 19, 2013

Morgan Stanley stock traders rebuild burned bridges

NEW YORK (Reuters) – As Morgan Stanley’s share price went on a headlong descent during the financial crisis in 2008, then-Chief Executive John Mack personally lobbied regulators to stop short-selling temporarily.

He succeeded. But in doing so, he made enemies among powerful hedge fund managers, for whom the practice of selling borrowed shares in a bet they will later fall is a key investment strategy.