Gross, Grantham Blast Fed's Asset Buying (NYT)
The U.S. central bank's bond asset purchasing program "is in fact inflationary, and, if truth be told, somewhat of a Ponzi scheme," Gross wrote in his monthly investment outlook posted on Pimco's website on Wednesday. "It raises bond prices to create the illusion of high annual returns, but ultimately it reaches a dead end where those prices can no longer go up," said Gross.
Tiger Asia Receives SEC Subpoena After Hong Kong Probe (Bloomberg)
The firm said it assumes the subpoena was prompted by the allegations of insider trading from Hong Kong’s securities regulator, according to a letter to investors.
Banks `Want to Sit Down' With States to Discuss Foreclosures (Bloomberg)
We’ve had several conference calls with major lenders,” Colorado Attorney General John Suthers said in an interview, declining to specify which ones. “The banks want to sit down with the attorneys general. These meetings are being set up,” said Suthers, whose office is a member of the executive committee of the task force.
Man Group To Cut 200 Jobs (WSJ)
The planned cutbacks, over the next 6 months, which would be among the largest at a major hedge-fund firm in recent history, will primarily come from layoffs, though some reductions will come via attrition and not renewing consultants' contracts, the person said. The size of the reduction is several times as much as Man projected when it announced the deal in May. The combined firm currently has about 1,800 employees.
HSBC, JPMorgan Accused in Suit By Investors of Placing ‘Spoof’ Silver Orders (BW)
The investor, Peter Laskaris, alleges that starting in March 2008, the banks colluded to suppress silver futures so that call options, or the right to buy, would decline, and put options for the right to sell would increase, according to the complaint filed yesterday in federal court in Manhattan. The collusion was also intended to maintain prices at levels at which some options would expire as worthless, Laskaris claims. The banks placed so-called spoof trading orders, or the “submission of a large order which is not executed but influences prices and is then withdrawn before it reasonably can be executed,” according to the complaint.
Ackman's Cash For Booker Brings In $240 Million In Aid From Wall Street (Bloomberg)
“This guy has the same or greater talent than the vast majority of my peers who are working on Wall Street and making millions of dollars,” Ackman, said. “Here’s this guy making nothing and living in a housing project, who is motivated for all the right reasons. That’s what made him compelling.”
Treasury Official: No Systemic Risk Fears (WSJ)
At a hearing Wednesday of the Congressional Oversight Panel, Phyllis Caldwell, Treasury's chief of homeownership preservation, said the Obama administration is monitoring the "put-back" risk of home loans packaged into securities that are being challenged by investors as a result of revelations about flawed documents. "At this point, there is no evidence of a systemic risk," Ms. Caldwell told the panel, created in 2008 to monitor the federal government's $700 billion Troubled Asset Relief Program.
SEC Rule Would Tighten Control On Trades (Bloomberg)
Members of the S.E.C. are scheduled to vote Nov. 3 on a rule that would require brokerage houses to put into place controls to monitor client trades, the agency said in a statement on its Web site. S.E.C. officials first proposed the regulation in January, saying they were concerned that a computer malfunction or a human error might set off an order that could erode a company’s capital.
Access And The Plight Of The Political Comedian (NYT)
Obama on The Daily Show on Larry Summers: “[He did] a heck of a job.”
Tense Call Led To Rattner Legal Standoff (WSJ)
The terrifying heavy breathing of Andrew Cuomo on the other end.