The details are still emerging, but here’s some of what you need to know:
Volcker Rule: Only 3% of a bank’s tangible common equity can be invested in hedge funds or private equity.
Also under the Volcker Rule, prop trading at bank holding companies is not allowed, but of course this will be subject to substantial debate about what prop trading is.
As CNBC’s Kate Kelly reports, there’s also language in the bill that could prevent banks from hedging their exposure to trades done on behalf of clients. This is a response to the Goldman ABACUS scandal, and the idea that banks are taking positions contrary to their clients wishes. Major banks are said to be very concerned about this.
Blanche Lincoln’s anti-derivatives rule remained somewhat intact. Banks will be allowed to use various swaps to hedge their own exposure, but dealing of many derivatives will be forced into separately capitalized hives of the big firms.
As Reuters notes, the Fed is gaining several powers in this including greater oversight of systemic risk, and it will house the consumer protection agency.
As for the consumer protection agency, it reamain unclear what shape it will take. Much of it may depend on who is helming it, and what political party is in charge. This was previously seen as a particularly controversial measure, but nobody is all that worried about it right now.
Regarding the consumer, the bill limits fees debt card firms can charge.
The Fed will be audited regarding its open market activities, but will not face oversight on actions realted to monetary policy.
The Ratings Agencies will be subject to greater oversight, and will have more liability, according to Reuters.
The bill includes a new $19 billion levy on banks, according to POLITICO.
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 firstname.lastname@example.org 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.
Technological civilization runs on energy. Second only to health care in economic clout, energy accounts for slightly less than 10% of GDP depending on the actual fuel prices. Everything depends on energy, even the biological world inside and around us.
Energy is a cost component in all goods and services, from manufacturing to overhead and transportation. As such, the price and availability of energy is a major determinant of all price levels and, inversely, the standard of living.
The cost of power generation is not the only aspect of energy that we should be paying attention to, as members of the human race and as investors. In this article, I&rsqu...
Against the major currencies, the US dollar had a good week. It appreciated across the board, with two minor exceptions. The Swedish krona continued to recover from the slide spurred by the larger than expected 50 bp rate cut at the start of the month. A few data points, including June manufacturing PMI and June CPI were stronger than expected, and helped ease stagflation fears.
The other exception was the Australian dollar, which sill managed to eke out a marginal gain after pulling back three-quarters of a cent in the last two sessions of the week to test $0.9400. The gains had been sparked RBA minutes that did not show heightened concern about the Australian dollar, even thou...
Here's a perspective on personal income for production and nonsupervisory private employees going back five decades.
The Bureau of Labor Statistics has been collecting data on this workforce cohort since 1964. The government numbers provide some excellent insights on the income history of what we might think of as the private middle class wage earner.
The first snapshot shows the growth of average hourly earnings. The nominal data exhibits a relatively smooth upward trend.
Volume in Starbucks options is running approximately three times the average daily level for the stock as of 1:15 p.m. ET ahead of the company’s third-quarter earnings report after the close. Shares in the name are up roughly 1.0% just before midday to stand at $79.95. Traders of SBUX options today are more active in calls than puts, with the call/put ratio hovering near 2.0 as of the time of this writing. Much of the volume is in 25Jul’14 expiry options contracts, most notably in the $80 and $83 strike calls which have traded roughly 3,350 and 2,550 times respectively and in excess of existing open interest levels in both strikes. A portion of the volume in the $80 and $83 calls appears to be part of a spread trade.
Despite a highly eventful week in the news, not much has changed from a stock market perspective. No doubt, investors have grown immune to the daily reports of geopolitical turmoil, including Ukraine vs. Russia for control of the eastern regions, Japan’s dispute with China over territorial waters, Sunni vs. Shiite for control of Iraq, Christians being driven out by Islamists, and other religious conflicts in places like Nigeria and Central African Republic. But last Thursday’s news of the Malaysian airliner tragically getting shot down over Ukraine, coupled with Israel’s ground incursion into Gaza, had the makings of a potential Black Swan event, which in my view is the only thing that could derail the relentless bull march higher in stocks.
Nevertheless, when it became clear that the airline...
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.
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We tried holding up stock prices but couldn’t get the job done. Market Shadows’ Virtual Value Portfolio dipped by 2% during the week but still holds on to a market-beating 8.45% gain YTD. There was no escaping the downdraft after a major Portuguese bank failed. Of all the triggers for a large selloff, I’d guess the Portuguese bank failure was pretty far down most people's list of "things to worry about."
All three major indices gave up some ground with the Nasdaq composite taking the hardest hi...
Reminder: Pharmboy is available to chat with Members, comments are found below each post.
Well PSW Subscribers....I am still here, barely. From my last post a few months ago to now, nothing has changed much, but there are a few bargins out there that as investors, should be put on the watch list (again) and if so desired....buy a small amount.
First, the media is on a tear against biotechs/pharma, ripping companies for their drug prices. Gilead's HepC drug, Sovaldi, is priced at $84K for the 12-week treatment. Pundits were screaming bloody murder that it was a total rip off, but when one investigates the other drugs out there, and the consequences of not taking Sovaldi vs. another drug combinations, then things become clearer. For instance, Olysio (JNJ) is about $66,000 for a 12-week treatment, but is approved for fewer types of patients AND...
I just wanted to be sure you saw this. There’s a ‘live’ training webinar this Thursday, March 27th at Noon or 9:00 pm ET.
If GOOGLE, the NSA, and Steve Jobs all got together in a room with the task of building a tremendously accurate trading algorithm… it wouldn’t just be any ordinary system… it’d be the greatest trading algorithm in the world.
Well, I hate to break it to you though… they never got around to building it, but my friends at Market Tamer did.
Note: The material presented in this commentary is provided for
informational purposes only and is based upon information that is
considered to be reliable. However, neither MaddJack Enterprises, LLC
d/b/a PhilStockWorld (PSW) nor its affiliates
warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither PSW nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance, including the tracking of virtual trades and portfolios for educational purposes, is not necessarily indicative of future results. Neither Phil, Optrader, or anyone related to PSW is a registered financial adviser and they may hold positions in the stocks mentioned, which may change at any time without notice. Do not buy or sell based on anything that is written here, the risk of loss in trading is great.
This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only intended at the moment of their issue as conditions quickly change. The information contained herein does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before investing, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.