Posts Tagged ‘investment bank’

Charitable Giving

Good morning and Happy Thanksgiving to PSW readers! Here’s a artcle on GS’s contribution to small businesses.  - Ilene  

Charitable Giving

Courtesy of The Epicurean Dealmaker

"Guess what? I have flaws. What are they? Oh I dunno, I sing in the shower? Sometimes I spend too much time volunteering. Occasionally I’ll hit somebody with my car. So sue me—no, don’t sue me. That is opposite the point I’m trying to make."

"Do I need to be liked? Absolutely not. I like to be liked. I enjoy being liked. I have to be liked. But it’s not like this, compulsive, need, to be liked. Like my need to be praised."

— Michael Scott, The Office

In an otherwise less than sympathetic piece on the public relations travails of the Vampire Squid everybody loves to hate, Financial Times journalist Chrystia Freeland credits the investment bank’s recently announced 10,000 Small Businesses initiative as "cleverly conceived" and "designed for maximum effect." I have to disagree.

Like many of you, I am sure, I was impressed when I heard Goldman was going to donate $500 million to a myriad of small businesses, which are widely perceived to be the primary engines of job creation in our economy. Oh goody, I thought: half a billion bucks mainlined into the veins of those businesses best able to kick start the economy back into rude health. What a coup.

Then I read the blasted thing. It is not pretty. Sixty percent of the committed funds will be distributed for "lending and philanthropic support," but this will be directed through "Community Development Financial Institutions." Call me a skeptic, but this does not sound like high powered money coursing directly into the working capital accounts of productive enterprises which can use it. Instead, it sounds like a $300 million slush fund for the functional equivalent of community NGOs. The remaining forty percent—200 million clams—will go toward "education."

Oh great, Lloyd, that’s just what every small businessman needs: an education. After all, everybody knows what the owner of a chain of dry cleaners or a machine tool factory really needs is "scholarships," greater "educational capacity," and mentoring by some half-assed social worker out of an abandoned storefront. Why stop there, though? Why not endow a hundred spots at Harvard Business School in perpetuity so Hmong immigrants can learn to


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More on why big capital markets players are unmanageable

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More on why big capital markets players are unmanageable

"The Central Bank--Why should Uncle Sam establish one, when Uncle Pierpont is already on the job?"Courtesy of Edward Harrison at Credit Writedown

Yves had a very good post yesterday called “Why Big Capital Markets Players Are Unmanageable” on banks: the former i-banks and commercial banks.  The biggest takeaway for me came from her statements regarding the level of responsibility that a junior level employee in an investment bank can have. She says:

What makes capital markets businesses different from any other form of enterprise I can think of is the amount of discretion given of necessity to non-managerial employees, meaning traders, salesmen, investment bankers, analysts. In pretty much any other large scale business, decisions that have a meaningful bottom line impact (pricing, new sales campaign, investment decision) are deliberate affairs, ultimately decided at a reasonably senior level. The discretion that customer-facing staff have in pretty much any business in limited. At what level does someone have the authority to negotiate a contract? And even then, how many degrees of freedom do they have?

That is a very significant factor in investment banking that makes it risky.  Think about the blow-ups that have occurred in trading enterprises from SocGen to Sumitomo to Barings Bank.  In most enterprises, most junior-level employees don’t have the decision-making authority necessary to allow these mistakes to happen.

But, Yves’ post got me to thinking a bit more about investment banking itself and the change in emphasis within firms.  John Gapper at the FT had a revealing post yesterday on just this subject.  He writes:

There is excited talk of investment bankers reclaiming the power and mystique that veteran rainmakers such as Joe Perella, Robert Greenhill and Roger Altman (all of whom now ply their trade at boutiques) once enjoyed at big banks, rather than being trained as technicians and treated as such.

How seriously should we take this? Not as seriously as the bankers do, it is safe to say. There will always be a place in the boardroom for a few senior advisers with the skills and temperament to give thoughtful and unbiased advice to chief executives facing big, risky decisions.

“Sometimes a chief executive needs a surgeon to operate but sometimes he needs a GP who understands people and politics and governance. The best


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Zero Hedge

Chicago Violent Crime Spreading To The "Safe" North Side Neighborhoods

Courtesy of ZeroHedge. View original post here.

Chicago's violent crime problem seems to be spreading to the historically safe "north side" neighborhoods.  The spike in crime on the north side comes as Chicago's police department has diverted more officers to the city's violent south and west side neighborhoods to fight extreme levels of violence there.  As reported by local Chicago news station WGN, violent crime is up 61% in the Loop this year with Near North Side up 50%, Lincoln Park up 42% and Edgewater up 44%.

WGN also reports that o...



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ValueWalk

Old School Curated Links And News Aug 22 Edition

By Jae Jun. Originally published at ValueWalk.

Old School Curated Links And News Aug 22 Edition by Jae Jun

Welcome to the Aug 22nd edition of the Old School Curated Links and News.

I provide the latest round of valuable content that I’ve been reading/following as well as short updates to Old School Value you may be interested in.

With many people on vacation during August, Friday isn’t the best time to send out a list of links.

So I’ve moved it temporarily to a Monday for the next month or so.

Old School  Value: VIP Email List – How to Get Added

In the meantime, I’m preparing to send out extra hidden content to VIP people via email.

I’ve had a lot of people request to be added to the VIP list or ask how they can be included.

Here’...



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Phil's Favorites

Now Children, Please Play Nice

Courtesy of Mish.

German Chancellor Angela is telling Turks in Germany to develop a high level of loyalty. The admonishment sounds like a kindergarten teacher preaching to her kids to play nice.

In related news, Jean-Claude Juncker repeated Merkel’s ill-fated message from a year ago, welcoming all refugees. He is seriously out of touch with voter reality given events of the past year.

Please consider Merkel Tells Turks in Germany to ‘Develop a High Level of Loyalty’.

Chancellor Angela Merkel has warned Germany’s Turkish population to “develop a high level of loyalty” to their new homeland, in the latest sign of political concern about divided allegiances in th...



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Chart School

S&P 500 Snapshot: A Modest Gain on Weak Investor Participation

Courtesy of Doug Short's Advisor Perspectives.

The S&P 500 rallied at the open and hit its 0.49% intraday high about 30 minutes into the session. It then slowly sold off to a narrow trading range after the lunch hour and then sold off to its 0.20% closing gain in the close vicinity of its intraday low. The mixed spurt of economic news at 10 AM, strong New Home Sales and weak Richmond Fed Manufacturing didn't seem to be much of a factor in today's trade. The general view among the pundits is that the market mavens (who aren't on vacation) are awaiting the Friday flavor of Fed Chair Yellen's spee...

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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Olympics a Losing Streak for Host Currency as Real Falls: Chart (Bloomberg)

Brazil’s real, the best-performing currency this year with a 24 percent gain, lost its shine during the Olympics in Rio de Janeiro.

This country went from boom to economic nightmare in 5 years (CNN Money)

In 2011, Mongolia's economy grew by 17% and attracted billions of dollars in foreign investment. Now, the country is facing a debt crisis and possible default.

...



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Kimble Charting Solutions

Testing- Crude Oil and Natural Gas testing breakout levels

Courtesy of Chris Kimble.

Crude and Natural Gas have stunk it up for the past few years, been a great place to avoid. Could both be creating multi-year trend reversal patterns? CLICK ON CHART TO ENLARGE Crude and Natty are both correlating the past few years and both are near tests of resistance that could send a message that […]Requires Premium Membership - log in or see subscription options

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

...

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Biotech

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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OpTrader

Swing trading portfolio - week of August 22nd, 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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Digital Currencies

Man Who Introduced Millions to Bitcoin Says Blockchain Is a Bust

 

Man Who Introduced Millions to Bitcoin Says Blockchain Is a Bust 

By  at Bloomberg

Excerpt:

Stefan Thomas, who introduced millions of people to bitcoin, has had a change of heart.

Blockchain, the ledger software that makes the digital currency possible...



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Mapping The Market

Illusion of Choice

From Jean-Luc:

Looks like we are down to about 10 companies for our consumer goods:

http://www.visualcapitalist.com/illusion-of-choice-consumer-brands/

Just like banks, airlines and cable companies! 

The Illusion of Choice in Consumer Brands

Explore the full-size version of the above graphic in all its glory.

If today’s infographic looks familiar, that’s because it originates from a well-circulated report that Oxfam International puts together to show consolidation i...



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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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Promotions

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!

PhilStockWorld.com 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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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!




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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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