Tag:
Hedges
Latest Headlines
Latest Headlines
Jefferies' wild ride reflects "who's next" skittishness
It's a hair-trigger environment out there in the wake of the demise of MF Global.
People are wondering who's next, and the spotlight unfortunately fell on Jefferies this week. The stock tanked 20 percent quickly on Thursday. Trading was halted. Worries ramped up, as people whispered about liq
Goldman Sachs loss ignites shares rally
Goldman Sachs posted only its second loss as a public company, and its shares promptly rallied--and significantly. So what's going on?
According to Bloomberg , the market was apparently heartened by news that Goldman Sachs revenue from trading stocks and bonds rallied 16 percent sequentiall
Morgan Stanley aims to avert 2008 repeat
Morgan Stanley has learned a lot from the 2008 financial crisis, when it came close to collapsing. The recent swoon in the stock price and widening of CDS spreads rekindled memories of the past crisis, and has kicked executives into overdrive, reports the New York Times .
They are bound and
UBS rogue trader Kweku Adoboli: Shades of Jerome Kerviel
The Kweku Adoboli story at UBS sounds all too much like the Jerome Kerviel story at Societe Generale. Both worked back office or middle office when they started at their banks, building up a massive amount of compliance and systems knowledge. Both then went to work as traders for their banks'
Finally, Goldman Sachs comes out swinging against Senate report
The aftermath of the Senate Permanent Subcommittee's scathing report on the CDO practices of Goldman Sachs and other big banks quickly reignited the whole issue of whether Goldman Sachs or its executive would face criminal charges.
The issue flared especially when the Manhattan District Attorn
Goldman execs use options to hedge, generate income
The New York Times weighs in with an interesting article on the hedging practices of Goldman Sachs employees, regarding their holdings of the company stock, which accounts for a large portion of personal wealth in many cases. Regulatory filings show that from July 2007 through November
Goldman Sachs' hedges on AIG exposure debated
Is it an end to one Goldman Sachs conspiracy theory? Some have suggested the reason government officials bailed out AIG (NYSE: AIG ) was to help exposed investment banks, notably Goldman Sachs (NYSE: GS ).
Goldman has always maintained that it was fully hedged and had nothing to gain by
Toxic Harvard swaps
We've noted before that there is a fine line between hedging and speculating. Harvard University--Harvard!--has learned that in a painful way. Bloomberg offers an eye-opening look at the mess the university got into with its interest rate swaps ploy. It backfired miserably when rates plunged,
Does regulation single out hedge funds?
The too-big-to-fail bill that has generated much discussion. It has singled out large hedges as required contributors to a special fund that would be used to wind down large firms. Bloomberg reports that the industry is chafing because the systemic-risk legislation in the house anyway requires
Goldman Sachs' hedges to pay off?
Goldman Sachs ( GS ) will either be scorned or praised for how it has handled the CIT case. It purchased insurance in the form of credit default swaps on CIT. In addition, it owns a make-whole agreement that was part of the $3 billion rescue package it put together for CIT in 2008, reports the
