JPMorgan Fined Record $49 Million for Failing to Isolate U.K. Client Cash (Bloomberg)
An average of $8.6 billion wasn’t properly segregated by JPMorgan Securities Ltd. in an error that went undetected for seven years, the Financial Services Authority said in a statement today. As much as $23 billion of client money held by the bank’s futures and options business wasn’t put in separate overnight customer accounts between 2002 and 2009, the FSA said.
Hotshot Traders Leave Wall Street (WSJ)
Since political momentum began building earlier this year to limit trading for profit at Wall Street firms, traders have been exploring their options, and some have already left. Outside the banks, private investment funds looking for skilled traders have been gearing up for a hot talent market. Greg Lippmann, who left Deutsche Bank AG on Friday, is among the highest-profile examples of traders lately exiting banks. Mr. Lippmann, who helped Deutsche earn billions betting against mortgages, is starting a hedge fund with other Deutsche colleagues that will be called Libre Max, people familiar with the matter say.
Treasury Sees Options Available for AIG Repayments (AP)
Geithner praised the company’s decision to walk away from the Prudential offer. “AIG is now free to pursue a bunch of other options to help maximize the return, reduce any risk of loss to the taxpayer,” Geithner told reporters at the Treasury Department. “They have got a very strong management team, a much stronger board in place, making incredibly impressive progress frankly in restructuring that entity … putting us in a position that we can maximize the return to taxpayers as a whole,” he said.
Fitch First to Cut BP as Oil-Spill Costs Mount (Reuters)
“The downgrade of BP’s ratings reflects Fitch’s opinion that risks to both BP’s business and financial profile continue to increase following the Deepwater Horizon accident,” Fitch said on Thursday.
US Debated Probe Announcement (WSJ)
Inside the department, some officials feared that the threat of agents of the Federal Bureau of Investigation looking over the shoulder of BP and others could hinder the work to plug the well, people familiar with the debate said.
The High Frequency Talker (NYO)
In 2003 he started M3, which he said he named after the idea of money cubed: “M cubed is a combination of strategy, structure and people.” Then he paused, and admitted he’d named the company after his car, an Imola red BMW M3 with black leather Continue reading »
After ratting on his pals for insider trading, former Goldman analyst David Pajcin decided to hightail it out of town. (Most likely to his native Croatia, although we doubt he’s holed up with his underwear seamstress aunt.) But if authorities can find him, and you know the crack investigators at the SEC will, Pajcin will owe the government $28 million, according to a judgement handed down by U.S. District Judge Kimba Wood late yesterday.
