Aug 26 (Reuters) – In the 1990s, U.S. banks came up with a
clever idea: using life insurance to bet that their employees
would eventually die. Now those wagers are coming back to haunt
Wall Street banks for reasons that have little to do with their
For more than a decade, the lenders purchased life insurance
policies, known as “bank-owned life insurance,” on employees in
bulk. These policies were unusual: banks chose how the premium
would be invested; and were on the hook for investment losses or
gains over time, unlike typical policies where the insurer
invests the premium.
NEW YORK/CHICAGO (Reuters) – Goldman Sachs Group Inc is assessing the financial damage caused by a trading glitch that led to a flood of erroneous options trades, as U.S. regulators began looking into what caused the problem.
On Tuesday morning, an upgrade of an internal Goldman system affected options on stocks and some exchange-traded funds with listing symbols beginning with the letters H through L.
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.
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
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.
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
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.
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
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
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.
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.
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.
(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.