US Pursues Sweeping Insider Trading Probe (WSJ)
Federal authorities, capping a three-year investigation, are preparing insider-trading charges that could ensnare consultants, investment bankers, hedge-fund and mutual-fund traders, and analysts across the nation, according to people familiar with the matter. The criminal and civil probes, which authorities say could eclipse the impact on the financial industry of any previous such investigation, are examining whether multiple insider-trading rings reaped illegal profits totaling tens of millions of dollars, the people say. Some charges could be brought before year-end, they say.
Ending Banks' `Disco Inferno' Will Involve Errors, Haldane Says (Bloomberg)
“Chuck Prince’s disco inferno causes murder on the dance floor,” said Haldane, who is the Bank of England’s executive director for financial stability. “The case for policy action may have grown over recent decades as competition in banking, and associated externalities, have intensified.”
US Banks Face $100 Billion Capital Shortfall On Basel (FT)
The top 35 US banks will be short of between $100 billion and $150 billion in equity capital after the new Basel III global bank regulations are imposed, with 90 percent of the shortfall concentrated in the biggest six banks, according to Barclays Capital.
Ireland Bailout Gets Lukewarm Welcome (WSJ)
The Irish government Sunday said it had formally applied for tens of billions of euros in aid from the European Union and the International Monetary Fund. The EU and the IMF indicated the money will be forthcoming, pending negotiations on the steps the government will have to take to restructure its debts and cut its budget deficit.
Criticism Hinders Fed Plan (WSJ)
The criticism "has raised questions about the Fed's ability and resolve to control the yield curve," said Mohamed El-Erian. "The criticism has unsettled markets naturally inclined to worry about the politicization of the Fed and its loss of autonomy," he said.
Soros Gold Bubble Expanding as ETPs Hold 9 Years of U.S. Output (Bloomberg)
“People who are selling gold here are making a big mistake,” said Michael Pento, a senior economist at Euro Pacific Capital Inc. in New York who correctly predicted gold’s highs the past two years. “The gold bull market will end when real interest rates become positive and we’re very far away from that. The Fed believes it’s going to have to print more money to keep real interest rates from rising and rescue the economy.”
No Exodus: Financial Service Sector Investors Return To London (FT)
Foreign-owned businesses accounted for 9.1 percent of new authorizations by the Financial Services Authority in the first half of 2010, according to data compiled by IMAS corporate finance advisers. That is up 40 percent from 2009, when foreign-owned companies accounted for 6.5 percent of new authorizations, as financial services groups worldwide struggled in the aftermath of the financial crisis.
For-Profit Colleges May Lose Access To US Aid Over Violations (Bloomberg)
For-profit colleges that pay recruiters based on the number of students they sign up may lose access to U.S. government student aid, which provided the colleges with $26.5 billion last year and can account for as much as 90 percent of company revenue.
Putin Calls Meeting On Tiger Threats (NYT)
Ministers from several countries gathered Sunday in St. Petersburg at the invitation of Prime Minister Vladimir V. Putin of Russia to begin a five-day meeting with the goal of protecting tigers. Only a little more than 3,000 are estimated to be living outside captivity. Mr. Putin is so fond of the animals that he was given a cub for his 56th birthday. But it is perhaps no accident that Mr. Putin has chosen to make an endangered feline the subject of the conference rather than a threatened canine — the wolf, for example, or the wild dog. Throughout history, prominent men have identified with the majesty, power and machismo of large cats.
“Leaders especially like to think of themselves as having the virtues of large cats,” said Stephen R. Kellert, a professor emeritus and senior research scholar at Yale University who studies human-animal relationships. “They like the image of the stand-alone, solitary yet fearsome hunter.”