Wells Fargo apology has no meat, but CEO should stay, analyst Mike Mayo says (CNBC)
Stumpf will answer questions before the Senate Banking Committee on Tuesday following the revelation that Wells Fargo employees opened as many as 2 million accounts on behalf of customers without their consent, resulting in a $185 million fine from regulators including the Consumer Financial Protection Bureau. Stumpf is planning to apologize and take full responsibility, according to prepared remarks. But the statement fails to address why it took Wells Fargo so long to halt the behavior, where the checks and balances were applied, and what the repercussions will be for executives, Mayo said. "Where's the rest? Where's the meat?" he asked. "It doesn't really say anything. It doesn't answer the questions that he's going to be grilled on today." Mayo said the company should claw back pay for Stumpf and Carrie Tolstedt, the head of community banking who is scheduled to retire at year's end. Still, Stumpf should stay on as chief executive, he added.
Jack Ma’s Finance Business May Be Worth More Than Goldman Sachs (Bloomberg)
Alipay got its start in 2004 as a way for the customers of Alibaba Group Holding Ltd. to more easily buy goods online. Now the business’s parent company may be worth $75 billion, or more than Goldman Sachs Group Inc. That’s the conclusion of Elinor Leung, the head of telecom and Internet research at CLSA in Hong Kong. The number may not even sound that outlandish: Ant Financial, Alipay’s parent company, was valued at about $60 billion in June when it raised $4.5 billion, people familiar with the matter said at the time.
Fed again poised to cut longer-run interest rate forecast (Reuters)
U.S. Federal Reserve policymakers are set this week to again cut their forecasts for how high interest rates will need to go in an economy where output, productivity and inflation are growing at a slower pace than in past decades. It would be the fourth time in 15 months that the U.S. central bank has been forced to admit its estimate of this so-called neutral rate was too optimistic, raising questions about the health of the economy in the coming years.
Stiglitz Grades Donald Trump an F on Economics (Bloomberg)
The U.S. economy would be a big loser if Donald Trump wins the presidential election and imposes new tariffs on imports from China, according to Nobel laureate Joseph Stiglitz. The end result would be a trade war, a correction in U.S. living standards and a net loss of American jobs, Stiglitz said Monday in an interview with Bloomberg News in Hong Kong. Stiglitz, 73, was chairman of the Council of Economic Advisers from 1995 to 1997, making him a member of cabinet when Bill Clinton was president.
Indiana woman allegedly offered meth for sale in wrong-number text to police officer (UPI)
Authorities in Indiana said they arrested a woman accused of sending a police officer a wrong-number text offering meth for sale. The Johnson County Sheriff's Office said Shelby Eicks, 20, allegedly sent a text message offering to sell and deliver meth to a number belonging to a New Whiteland Police Department officer. Undercover detectives exchanged messages with Eicks and she allegedly sold them half an ounce of methamphetamine for $575 at a fast food restaurant Sept. 10.
Goldman Romps Past JPMorgan in Wall Street Battle of ETF Newbies (Bloomberg)
Two of the financial industry’s biggest names -- Goldman Sachs Group Inc. and JPMorgan Chase & Co. -- are in the race for Wall Street supremacy in the $3 trillion global market for exchange-traded funds. Goldman Sachs won the first leg by pulling in a couple billion dollars in ETF assets in a year. But the competition is just beginning, and JPMorgan has plenty of time to catch up. “Goldman clearly has a sizable lead,” said Ben Johnson, the Chicago-based director of ETF research for Morningstar Inc. “Goldman did quite a bit of work priming the pump, pre-vetting its strategies with institutional clients. That’s a big piece of it.”
SWIFT plans measure to help spot fraudulent bank transfers (Reuters)
The SWIFT inter-bank messaging network plans to send daily reports to clients to help them more quickly identify unauthorized payment instructions like those used by hackers to steal $81 million from Bangladesh’s central bank in February. Trillions of dollars worth of inter-bank payments are made each day using SWIFT messages but the Bangladesh theft and others which have came to light this year have knocked confidence in the supposedly super-secure system. SWIFT said in a statement on Tuesday that from December it would begin sending 'Daily Validation Reports' to clients.
J.P. Morgan Names Berkshire Investment Manager to Board (WSJ)
J.P. Morgan Chase & Co. on Tuesday said it named Berkshire Hathaway Inc. investment manager Todd Combs to its board, bringing into the fold an heir-apparent of billionaire investor Warren Buffett’s enterprise. Mr. Combs, 45 years old, is a former hedge-fund manager who began working at Berkshire in 2011. He and a counterpart, Ted Weschler, manage portfolios of about $9 billion each, but they will take over all stock-picking duties when Mr. Buffett is no longer running the firm.
Bald eagles trained to snatch hostile drones (CNBC)
Police in the Netherlands have been training juvenile bald eagles imported from North America to intercept small drones that appear suspicious or may pose threats, according to LiveScience. The Dutch National Police have been training the birds for the past year, and apparently received interest in their program from law enforcement in other countries, including the United States. The police have been collaborating with a private company called Guard from Above, which trains birds of prey to intercept drones.