Tag:

losses

Latest Headlines

Latest Headlines

Legal liability mounting for top banks

The legal liability of the top 17 banks went up measurably when the Federal Housing Finance Authority, created to oversee the big GSEs, sued in September, accusing the banks of misrepresenting the quality of billions of dollars worth of consumer mortgages.  We're starting to get a glimpse of j

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

UBS: Gruebel steps down, Ermotti steps up

Oswald Gruebel was something of an industry hero when he turned around vaunted Swiss bank Credit Suisse, which nearly went belly up in 2008 because of more than $50 billion in losses on various toxic assets. When he was brought out of retirement to similarly turn around UBS, the industry cheer

Delta One desks, ETFs and the UBS fiasco

Both Kweku Adoboli, the UBS trader who was arrested for his role in the latest European rogue trading scandal, and before him Jérôme Kerviel, the Société Générale rogue responsible for $6.8 billion in losses in 2008, worked on Delta One desks, which have thrived in this Golden Era of exchange trad

Goldman Sachs hedge fund tumbles again

What will Goldman Sachs do with its troubled Global Alpha hedge fund? The once-vaunted quantitative fund has fallen 12 percent in August, while other quant funds have soared. And that has prompted Goldman Sachs to shake up management. Reuters reports that Katinka Domotorffy, the head of the Go

Rogue trader sinks earnings at UBS

After all the rogue traders we've seen at the likes of Societe General, Barings and even Morgan Stanley (on a smaller scale), it still shocks me that banks allow this stuff to happen. This is one of the compliance challenges that never seems to be adequately addressed, even in the wake of the Jero

Hedge funds still holding up better than stocks

Many hedge funds have taken their lumps recently. August was a terrible month. By one measure, the Hennessee Hedge Fund Index, funds on average declined 3.36 percent in August and are down 1.80 percent year to date on a net basis. The S&P 500, meanwhile, fell 5.68 percent in August and is down

Why JPMorgan can reduce principal on some loans

So why are JPMorgan Chase, Bank of America and others generously modifying some in-good-standing mortgages? Are they doing this out of altruism? Doubtful. There must be a financial reason. It might be that banks have ran some numbers and figured out that it makes more sense to keep these loans

How financial companies are like tobacco companies

Banks are bent on putting the financial crisis behind them, and that means settling with regulators at all levels, SROs, federal and state governments and private litigants. We're seeing a bevy of settlements involving the big banks right now. Sometimes they're dramatic. Sometimes they're over

Bank of America to take charge to cover settlements

One big question hanging over the all the talk of Bank of America's putback claims settlement with big-name bondholders like Blackrock, PIMCO and others was just how expensive the $8.5 billion settlement would be. There was confusion about whether the settlement would require massive new reser