SEC Risks Harm With High-Frequency Trading Curbs, CME CEO Says

Posted by & filed under Governments & Regulators, Industry Analysis.

Description:  Regulators would harm U.S. equities trading if they toughened restrictions on computer-driven strategies that have largely replaced human market makers, CME Group Inc. Chief Executive Officer Craig Donohue said. Source: Bloomberg.com   Date: 04/24/2010 Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=aVkTbg7q8Lwo Questions for discussion: Do you agree with the concerns expressed by Donohue? Can this type of activity be… Read more »

SEC director talks tough about Goldman

Posted by & filed under Governments & Regulators.

Description:  Director of Enforcement Robert Khuzami discusses the charges against Goldman Sachs during a panel at Tulane University’s Corporate Law Institute. Source: CNNMoney.com – video report   Date: 04/16/2010 Link: http://money.cnn.com/video/news/2010/04/16/n_Goldman_SEC_lawsuit_Khuzami.cnnmoney/ Questions for discussion: Summarize the accusations against Goldman and Paulson. Is this just a matter of full disclosure? What impact do you think this… Read more »

Goldman charged with fraud over Paulson CDO trade Shares of investment bank drop 13% on news of SEC lawsuit

Posted by & filed under Governments & Regulators, Industry Analysis.

Description:  The Securities and Exchange Commission on Friday charged Goldman Sachs Group Inc. and one of its vice presidents with defrauding investors by misstating and omitting key facts about a financial product related to subprime mortgages. Source: Marketwatch.com   Date: 04/016/2010 Link: http://www.marketwatch.com/story/goldman-charged-with-fraud-over-paulson-cdo-trade-2010-04-16?pagenumber=1 Questions for discussion: Are there any explanations that can mitigate the damage… Read more »

Abacus Allowed Goldman to Shuffle Mortgage Risk Like Beads

Posted by & filed under Governments & Regulators, Industry Analysis.

Description:  From July 2004 through April 2007, as credit markets boomed, Goldman Sachs Group Inc. created 23 financial transactions called Abacus, the word for a relatively crude counting tool involving the shuffling of beads. Yesterday, the Securities and Exchange Commission sued the bank for securities fraud in what would be the penultimate offering in the… Read more »

Dow 12,000 next? Or new record 14,165? Commentary: Wall Street’s happy talkers making fools of 95 million investors (again)

Posted by & filed under Industry Analysis.

Description: Yes, we hit 11,000. Propaganda. Yes, we’ll quietly sneak past 11,722 (Dow’s 2000 peak). Yes, we’ll happily climb to 14,164 (Dow’s 2007 peak). Maybe. But you’re being conned: Even a new record of 14,165 barely equals CPI inflation the past 10 years. Get it? Wall Street’s lost more than 20% of your money the… Read more »

Top tech companies 5 years from now

Posted by & filed under Growth & Valuation, Industry Analysis.

Description: Now that 2010’s Fortune 500 list is out, Techmate debates which companies are likely to rise or fall on the list in 2015. Source: CNNMoney.com – video report Date: 04/16/2010 Link: http://money.cnn.com/video/technology/2010/04/16/tm_fortune_500_5yrs.fortune/ Questions for discussion: Do you agree with the analysis presented? Which other companies do you think offer good chance for capiatl growth?

Whitney: Housing set to fall again

Posted by & filed under Governments & Regulators, Industry Analysis.

Description:  Bank analyst Meredith Whitney predicts more foreclosures are on the way and the housing market will not rebound smoothly. Source: CNNMoney.com – video report   Date: 04/08/2010 Link: http://money.cnn.com/video/fortune/2010/04/08/f_sl_meredith_whitney_housing.fortune/ Questions for discussion: Do you agree with the predictions made by bank analyst Meredith Whitney? What investing strategy would make sense if she is right?… Read more »

Housing bubble: Who’s to blame?

Posted by & filed under Economic Analysis, Governments & Regulators.

Description:  Alan Greenspan defends keeping interest rates low. Readers of ‘The Buzz’ weigh in on who they think is responsible. Source: CNNMoney.com – video report   Date: 04/07/2010 Link: http://money.cnn.com/video/news/2010/04/07/n_bz_housing_bubble_blame.cnnmoney/ Questions for discussion: Summarize the arguments for who is to blame for the crisis. How would you apportion blame? Present arguments in defence of each… Read more »

Merrill Units Win Dismissal of Some MBIA Claims in Lawsuit

Posted by & filed under Governments & Regulators, Management Issues.

Description: Merrill Lynch & Co. units now owned by Bank of America Corp. won dismissal of claims in a lawsuit filed by MBIA Inc. last year over protection sold against mortgage-debt defaults. Source: Bloomberg.com Date: 04/10/2010 Link: http://www.bloomberg.com/apps/news?pid=20601208&sid=ac_igSnXiHDw Questions for discussion: What is the significance of the judge’s decision in this case? What are the… Read more »

Innovation, by Order of the Kremlin

Posted by & filed under Governments & Regulators, Management Issues.

Description: AROUND the time that Apple Computer was making it big in California, Andrey Shtorkh was getting a first-hand look at the Soviet approach to high tech: he guarded the fence keeping scientists inside Sverdlovsk-45, one of the country’s secret scientific cities, deep in the Ural Mountains. Source: NYTimes.com Date: 04/10/2010 Link: http://www.nytimes.com/2010/04/11/business/global/11russia.html?ref=business Questions for… Read more »