Well, if its Leninist prime minister-to-be can’t be reasoned with, the country might just find itself absentmindedly, accidentally outside of the Eurozone one day soon. By which they mean, they’ll put it in a position where it will be forced to print Monopoly-money drachmas because it won’t be sending those pretty euros to its banks anymore. Read more »
Bank of America Corp. reduced third-quarter profit by $400 million because of higher litigation expenses related to probes of the firm’s foreign-exchange business. The lender adjusted results for the three months ended Sept. 30 to a net loss of $232 million, or 4 cents a share, Charlotte, North Carolina-based Bank of America said today in a statement…Bank of America, the second-largest U.S. lender, previously said it had $5.6 billion in third-quarter legal expenses, according to an Oct. 15 presentation, with almost 90 percent attributed to the mortgage settlement. The firm had posted a surprise quarterly profit before today’s disclosure. [Bloomberg]
On CNBC Monday afternoon, as anchor Kelly Evans went to commercial, the song they used as an outro contained uncensored usage of the n-word. The song in question was B2K’s Fizzo Got Flow, and needless to say, it’s a pretty colorful song. It was a few segments later, towards the end of the hour, when Evans apologized for airing the song “and for any offense that it may have caused.” [Mediaite]
I enjoyed Bloomberg’s story about how the SEC was pestering JPMorgan to better disclose its proprietary trading activities well in advance of the London Whale fiasco. If you just read the headline you’d be all “oh look how prescient the SEC was,” but if you read the actual letters, not so much. Here is my favorite exchange:
SEC: Identify the trading desks and other related business units that participate in activities you believe meet the definition of proprietary trading. Identify where these activities are located in terms of your segment breakdowns. Quantify the gross revenues and operating margin from each of these units. We note your disclosure on page 59 of your Form 10-K for the year ended December 31, 2010 that you have liquidated your positions within Principal Strategies in your former Equities operating segment. It is not clear if this was the extent of your proprietary trading business. Please clarify if there are other proprietary trading businesses. If there are, please clearly identify the extent to which such activities or business units have been terminated or disposed of as well as the steps you plan to take to terminate or dispose of the rest of these components.
JPMorgan:1 … The Firm believes that the Staff’s comment regarding the disclosure on page 59 relates to the Form 10-K filed by a registrant other than JPMorgan Chase.
Apparently Gary Foster “used his knowledge of bank operations” to get the job done. Read more »
On February 11th Goldman issued four warrants tied to Japan’s Nikkei index which were described in three separate filings amounting to several hundred pages. Buried in the instructions to determine the settlement price was a formula that read “(Closing Level – Strike Level) x Index Currency Amount x Exchange Rate”. It is Goldman’s contention that rather than multiplying the currency amount by the exchange rate, it should have divided by the exchange rate. Oops. [Economist via BI]
Are You Not Supposed To Use Client Funds On Private Jets, Move Money Between Onshore And Offshore Accounts?By Bess Levin
If so, no one ever told Perry Gruss. Read more »