national-global

Volcker Fallout, Euro Woes, Currency Snitches

12/20/13

Holiday Notice: The Morning Scan will publish next on Monday, Jan. 6. Happy new year and best wishes. Receiving Wide Coverage ...

Volcker Rage Continued: The slow-motion car wreck that is the Volcker Rule took its latest gory spin Thursday when regulators sought to assuage banker rage over its uncertain treatment of trust preferred securities, or Trups. The securities Â-- which are issued mainly by banks and insurers and have debt and equity characteristics Â-- became a...

[more]

Don't Cheer the Taper, Economist Cautions; Target Confirms Data Breach; Volcker Backlash; Bitcoin vs. the Haters

12/19/13

Receiving Wide Coverage ... The Taper: The Federal Reserve announced it will begin cutting back on bond purchases next month, sooner than many economists expected. While this is generally viewed as a vote of confidence in the economy by departing Chairman Ben Bernanke, the central bank cautioned it would keep short-term rates near zero until "well past" when unemployment falls below 6.5% (it was 7% last month). The decision to "taper" asset purchases is one lessÂ...

[more]

JPM Sues FDIC; Another AG Sues JPM

12/18/13

Receiving Wide Coverage ... JPM Lawsuits, Etc.: JPMorgan Chase sued the Federal Deposit Insurance Corp. on Tuesday for over $1 billion, alleging that the regulator did not honor its obligation to cover legal claims against Washington Mutual. JPM, of course, acquired WaMu in a hastily drawn-up deal at the height of the financial crisis. (We're saying "hastily drawn-up" here, since the agreement apparently lacks specifics over who exactly is liable for what.) JPM is not seekingÂ...

[more]

Banks Downsize in Volcker Aftermath; Bob Diamond's Life After Libor

12/17/13

Receiving Wide Coverage ...

Downsizing After Volcker: In what the Journal pegs as an "unforeseen consequence" of the recently released Volcker Rule, more than a dozen small and regional banks will likely need to sell collateralized debt obligations. Case in point: Zions Bancorp, which said it would take a $387 million charge to get rid of a large CDO portfolio, as a result of the Volcker Rule's treatment of CDOs comprised of trust preferred securities. "The...

[more]

Regulators' Challenge: To Face Unafraid the Plans That They've Made

12/16/13

Receiving Wide Coverage ...

Yes, Virginia, There is a Volcker Rule: Columnists on both sides of the pond spent the weekend parsing the true meaning of the Volcker Rule, now that U.S. regulators have finalized it. Echoing a piece in American Banker last Tuesday, Gretchen Morgenson concludes in the New York Times that with so many aspects of the measure still open to interpretation Â-- like, um, is this activity an endeavor in approved market making...

[more]

Cooling Off Bitcoin; More Mortgage Settlements

12/13/13

Receiving Wide Coverage ... Efforts to Cool Bitcoin Fever: The European Banking Authority, which has previously raised concerns with risks tied to virtual currencies such as Bicoin, issued a statement on Friday warning of the possibility of "violent fluctuations in electronic currencies" value and the danger of "digital wallets" being hacked. European authorities argue that consumers should be aware the industry is unregulated and will not be protected. The warning comes after the Bank of ChinaÂ...

[more]

JPMorgan Plays The Price Is Right, Madoff Edition; More Volcker

12/12/13

Receiving Wide Coverage ... What's Another $2 Billion at This Point? Paul Volcker and his eponymous rule have been hogging the financial headlines for far too long this week. Time for JPMorgan Chase to take back its usual place at the center of the spotlight, today with news that it's nearing yet another multi-billion-dollar payout to government authorities. This one involves jailed Ponzi schemer Bernie Madoff and a deferred-prosecution agreement for actual criminal charges against JPMorganÂ...

[more]

Volcker Viewpoints; Madoff, Five Years On

12/11/13

Receiving Wide Coverage ... Wow, what a morning. Scan is still trying to decide whether today's confluence of events out of Washington and Wall Street is poetically just, ironic or just plain spooky. A flood of headlines centered on finalization of the Volcker Rule, a congressional budget deal and the fifth anniversary of Bernard Madoff's arrest. That's a big agenda, but, for brave readers and those who had to get their kids to school early, let'sÂ...

[more]

Volcker ... Finally

12/10/13

Receiving Wide Coverage ...

Final Lap for Volcker Rule? A final version of the Volcker Rule, arguably the most controversial element of the Dodd-Frank Act, is expected to be approved by the five U.S. federal banking regulatory agencies today. The law is meant to prevent banks from engaging in risky trading for their own accounts, considered a factor in the downfall of some Wall Street firms in 2008. (A more modern example is JPMorgan Chase's London...

[more]

Cooperating? Why, JPMorgan Is Practically Leading This Investigation!

12/09/13

Receiving Wide Coverage ...

Sons and Daughters: Documents, including spreadsheets and emails, shine some light on how hiring the children of prominent businesspeople in China may have helped JPMorgan Chase land business with state-controlled companies. For example, in one email a senior JPM banker in Hong Kong writes, "You all know I have always been a big believer of the Sons and Daughters program — it almost has a linear relationship" with winning assignments. JPMorgan handed...

[more]