Posts Tagged ‘compensation rules’

Dan Tarullo Gets New Talking Points

Dan Tarullo Gets New Talking Points

Dan TarulloCourtesy of Simon Johnson at Baseline Scenario

On Wednesday, Dan Tarullo, a governor of the Federal Reserve and distinguished law school professor, dismissed breaking up big banks as “more a provocative idea than a proposal” and instead put almost all his eggs in the “creation by Congress of a special resolution procedure for systemically important financial firms”.  He stressed: “We are hopeful that Congress will, in its legislative response to the crisis, include a resolution mechanism and an extension of regulation to all systemically important financial institutions” (full speech).

This put him strikingly at odds with Mervyn King, governor of the Bank of England, who said Tuesday night, quite bluntly,

 “There are those who claim that such proposals [involving breaking up the largest banks] are impractical. It is hard to see why. Existing prudential regulation makes distinctions between different types of banking activities when determining capital requirements. What does seem impractical, however, are the current arrangements. Anyone who proposed giving government guarantees to retail depositors and other creditors, and then suggested that such funding could be used to finance highly risky and speculative activities, would be thought rather unworldly. But that is where we now are.”

Tarullo’s speech actually framed today’s problem just right: “I would suggest … that the reform process cannot be judged a success unless it substantially reduces systemic risk generally and, in particular, the too-big-to-fail problem.”  This is consistent with the tone of King’s remarks (even if less pointed than what Neal Barofsky said).

Tarullo also made some astute comments on how “too big to fail” emerged in its current specific form in the US and threatens us in a general form always.

“First, no matter what its general economic policy principles, a government faced with the possibility of a cascading financial crisis that could bring down its national economy tends to err on the side of intervention. Second, once a government has obviously extended the reach of its safety net, moral hazard problems are compounded, as market actors may expect similarly situated firms to be rescued in the future.” ….

“The fact that the largest financial firms will account for a significantly larger share of total industry assets after the crisis than they did before can only add to the

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Ed Garden Bullish On Bank of New York Mellon

By Jacob Wolinsky. Originally published at ValueWalk.

We are out at the Invest for Kids conference today in Chicago – below are our informal notes from the presentation by Ed Garden Of Trian Partners. We have a lot more coverage so stay tuned 

Also we have a lot more conference coverage under our hedge fund Q3 post

Ed Garden

Bank of New York Mellon (BK)

Trian’s general goal is to work with management and the board to improve the income statement, very different from traditional activist.  More like a private equity sponsor.  Looking to do two things 1) Eliminate management’s information advantage over the board, and 2) attack the problem issues directly. ...

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Zero Hedge

Stocks Pump'n'Dump As Crude Crumbles To 3-Week Lows

Courtesy of ZeroHedge. View original post here.

Ok - to summarize - stocks ripped to a technical level then dipped, thanks to momentum ignition from the crude complex as machines misread the inventory draw data (which sent oil over $50 opnly to crash back to the lows)... Homebuilders dropped as new home sales rose... and restaurant stocks plunged as Services PMI soared... Makes perfect sense, right?

Builders battered despite surge in new home sales...

Despite a surge in Services PMI, ...

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Digital Currencies

Bitcoin Soars As China Launches Crackdown On Wealth-Management Products

Courtesy of ZeroHedge. View original post here.

After trading in a tight range for much of the summer, coiled within a $100 range around the mid-$500s, over the past several weeks bitcoin has once again started to push higher, closely tracking the decline in the Chinese Yuan as shown below.

However, the most recent burst in bitcoin activity, which sent it surging by over $20 overnight, has little to do with any moves in the official Chinese currency, which recently...

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Phil's Favorites

US Trade Deficit Sinks 5.2%; Gaming the GDP Effect; Food for Thought

Courtesy of Mish.

This morning the The U.S. Census Bureau announced “Advance Numbers” for international trade, wholesale inventories, and retail inventories for September 2016.

The key line item is a decline in imports and a rise in exports. This will likely, but not necessarily, boost 3rd quarter GDP estimates.

Advance Trade and Inventory Numbers

Advance International Trade

Advance International Trade Details...

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Kimble Charting Solutions

Connect Series Webinar Oct 2016

Courtesy of Chris Kimble.

We cover the most dominating themes in the markets and share pattern analysis and perspectives to empower members to make better investment decisions.

To become a member of Kimble Charting Solutions, click here.


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Market News

News You Can Use From Phil's Stock World


Financial Markets and Economy

Oil Falls as U.S. Supply Seen Rising While Russia Resists Cuts (Bloomberg)

Oil dropped for a third day after industry data showed U.S. crude stockpiles expanded as Russia reiterated it would prefer freezing output at current levels rather than cutting.

Wall Street's top oil watcher explains what's happening in Saudi Arabia, Russia, and Libya (Business Insider)

Helima Croft, head of commodity strategy at RBC Capital Markets, spends her days keeping tabs on geopolitics and oil.


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Chart School

Tech Hold Breakout,.but S&P Wedge Bound

Courtesy of Declan.

It was a mixed day for indices. Large Caps remain bound by wedge support/resistance, but Tech broke upside yesterday from similar wedges and held those breakout today.

There was little change for the S&P over the last couple of days. The one technical change was the MACD trigger 'buy' as other technicals stayed on the bearish side.

Meanwhile, the Nasdaq cleared wedge resistance yesterday, and was able to hang on to the breakout despite today's loss. It too enjoyed a MACD trigger 'buy', but had an On-Bal...

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Members' Corner

A Lack of Faith, Disturbing?

Courtesy of Nattering Naybob.

Over at Philstockworld... High Finance for Real People - Fun and Profits...   

Phil – "long-term rates are suddenly ticking up as bond buyers have lost faith that the Central Banksters will be able to keep a lid on inflation"More so a rebirth of hope for much needed monetary flows in the form of "dollars" and some form of economic recovery rising in the distance.  Good luck there.  

By now those rogue bond traders should know the power of the dark side and all the carnage which that widow makers trade has left in its wake. J...

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Swing trading portfolio - week of October 24th,2016

Reminder: OpTrader is available to chat with Members, comments are found below each post.


This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...

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Mapping The Market

The Most Overlooked Trait of Investing Success

Via Jean-Luc

Good article on investing success:

The Most Overlooked Trait of Investing Success

By Morgan Housel

There is a reason no Berkshire Hathaway investor chides Buffett when the company has a bad quarter. It’s because Buffett has so thoroughly convinced his investors that it’s pointless to try to navigate around 90-day intervals. He’s done that by writing incredibly lucid letters to investors for the last 50 years, communicating in easy-to-understand language at annual meetings, and speaking on TV in ways that someone with no investing experience can grasp.

Yes, Buffett runs an amazing investment company. But he also runs an amazing investor company. One of the most underappreciated part of his s...

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Epizyme - A Waiting Game

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer.  One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."

Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.  

Genetic components are the DNA sequences that are 'inherited.'  Some of these genes are stronger than others in their expression (e.g., eye color).  Yet, some genes turn on or off due to external factors (environmental), and it is und...

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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.

To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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PSW is more than just stock talk!


We know you love coming here for our Stocks & Options education, strategy and trade ideas, and for Phil's daily commentary which you can't live without, but there's more! features the most important and most interesting news items from around the web, all day, every day!

News: If you missed it, you can probably find it in our Market News section. We sift through piles of news so you don't have to.   

If you are looking for non-mainstream, provocatively-narrated news and opinion pieces which promise to make you think -- we feature Zero Hedge, ...

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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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