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
EU Parliament bids to stifle derivatives trading (Finextra)
The Committee resolution advocates "abandoning the misjudgement that derivatives need no further regulation because they are only used by expert financial professions". Instead, it calls for strict rules to prevent inexperienced users and speculators from building up dangerous levels of risk and a total ban on speculative credit default swap (CDS) trading.
Swiss Upper House Approves UBS Pact (WSJ)
The vote is an important step toward passage of a law that would clear the way for Switzerland to hand over the names of 4,450 U.S. taxpayers who allegedly evaded taxes by hiding money in accounts at UBS AG.