Jim Rogers: Someone Should 'Hang' The NYSE (CNBC)
"Somebody should hang this New York Stock Exchange," Rogers said. "They claim to be the center of the world's capitalism, of the world's financial markets, you would think that in 2010 they could sort out simple things like electronics."
Stock plunge raises alarm on algo trading (Reuters)
"The potential for giant high-speed computers to generate false trades and create market chaos reared its head again today," Senator Edward Kaufman said in a statement. "The battle of the algorithms -- not understood by nor even remotely transparent to the Securities and Exchange Commission -- simply must be carefully reviewed and placed within a meaningful regulatory framework soon." Kaufman and Senator Mark Warner -- both Democrats -- said Congress needs to investigate the plunge, which at its deepest point wiped nearly $1 trillion off equity values.
Goldman, SEC Discuss Settlement (WSJ)
The two sides remain far apart. The preliminary settlement talks, held Tuesday, between Goldman co-general counsel Gregory Palm and other lawyers representing the New York company and SEC officials didn't include any specific settlement terms, such as the amount of a fine or agreements Goldman could make with the agency, people familiar with the situation said.
SEC Said to Probe Causes, Exploitation of Yesterday's Stock-Market Turmoil (Bloomberg)
SEC officials, who haven’t drawn conclusions, began preparing for inquiries in the hours after a U.S. selloff triggered by Europe’s debt crisis briefly erased more than $1 trillion in market value, beginning around 2:40 p.m. in New York. U.S. stocks tumbled the most in a year as waves of computerized trading exacerbated the rout, sparking a slide in Asian shares. The SEC and CFTC said in a joint statement that they will examine “unusual trading” that contributed to the plunge. “We will make public the findings of our review along with recommendations for appropriate action,” they said.
AIG Swings To Profit (WSJ)
AIG reported a first-quarter profit of $1.45 billion, or $2.16 a share, compared with a prior-year loss of $4.35 billion, or $39.67 a share. Excluding investment and divestiture impacts,the company recorded earnings of $1.21 a share compared with a prior-year loss of $22.90.
RBS Only U.K. Bank With First-Quarter Loss as Investment Bank Profit Drops (Bloomberg)
The bank reported a loss for the first quarter, the only major British financial institution to do so, as investment-banking profit unexpectedly slumped at the government-controlled company. Profit at RBS’s investment bank fell 58 percent to 1.47 billion pounds ($2.2 billion) from a profit of 3.47 billion pounds a year earlier.
AIG Is Said To Replace Goldman As Top Adviser (NYT)
AIG had planned to retain Goldman to help reorganize its businesses, but has replaced Goldman as its main corporate adviser, according to three people with knowledge of the matter, which was not intended to be public. Instead, the insurer is turning to Citigroup and Bank of America.
A Day Chasing Kim Jong II (Reuters)
Rumors of a visit had been circulating for months, and several colleagues had already been sent up to Dandong on futile "Kim watch" missions that involved long shifts of watching and waiting. But on the early hours of May 3, I sensed that this time might be different.
Audio Of Guy Giving Webinar During Yesterday's Festivities (Reformed Broker)