Deutsche Bank and Credit Suisse agreed to pay a combined $12.5 billion to resolve U.S. investigations into sales of the toxic debt that fueled the financial crisis, putting behind them a major dispute that had weighed on their shares and raised questions about their turnaround plans. Deutsche Bank will pay $7.2 billion and Credit Suisse agreed to a $5.3 billion deal. Their announcements came hours after Barclays Plc was sued for fraud Thursday by the Justice Department after it balked at paying the amount the government sought in negotiations.
In 1998 Deutsche bought Bankers Trust, paying $10 billion for the American bank and an estimated severance of $100 million to its chief executive. “Buying a U.S. firm is like climbing Everest without oxygen. It is risky, and the achievement is substantial, but is it really worth it?" one former senior Deutsche executive said. "You may find that the view from the summit is quite cloudy."
Cohn is one of the three early hires by Trump who worked at Goldman, and he’s by far the most accomplished among them on Wall Street. “Trump loves having Goldman guys around. The bank wouldn’t touch Trump, and now they’re working for him,” one Republican close to the transition told me, referring to the bank’s unwillingness to lend to Trump businesses.
Italy’s government has set up a backstop fund to shore up troubled banks, setting the stage for the rescue of troubled Italian lender Banca Monte dei Paschi di Siena SpA. At a cabinet meeting in the early hours of Friday, the government of Prime Minister Paolo Gentiloni approved the creation of a €20 billion ($20.9 billion) fund to help troubled banks. Shortly afterward, Monte dei Paschi said it will apply to tap this fund for fresh equity to shore up its balance sheet.
Pershing Square kept approximately 72 percent of the fund’s gains for itself, leaving investors with the measly remains. The reality is that many hedge funds, not just Mr. Ackman’s, reap far higher percentages of their gains than that stated in their fee structure. That’s because when they experience substantial losses — as Pershing Square did last year and is on track to do this year (its year-to-date loss through Tuesday was 12.4 percent) — they don’t have to give anything back.
The billionaire investor, tapped for a new post called “special adviser to the president on regulatory reform,” has said positive things about Dodd-Frank and one of its signature initiatives, the Volcker rule bank-trading ban. On the other hand, he has raised concerns about risks in the asset-management industry and accountability on corporate boards. “I’m not against regulations at all,” Mr. Icahn said Thursday on CNBC. “I sort of believe that you need a rule of law.”
Bombers, emblazoned with the words “illegal export subsidies”, cross the Pacific and drop bombs on US factories. A naval battery with barrels labelled “currency manipulation” joins the bombardment. “The Chinese government has used these weapons of job destruction to launch a sustained and devastating attack on America’s factories and jobs,” intones Martin Sheen, in a voiceover. This is Death by China, a 2013 documentary film by economist and soon-to-be White House trade guru Peter Navarro.
Investigators have interviewed potential witnesses about the relationship between Platinum co-founder Murray Huberfeld and billionaire hedge-fund manager Israel Englander, people familiar with the matter said. Mr. Englander, head of $34 billion Millennium Management LLC and one of the most emulated traders in the hedge-fund industry, hasn’t been accused of wrongdoing.
President-elect Donald Trump’s pick to run the Health and Human Services Department traded more than $300,000 in shares of health-related companies over the past four years while sponsoring and advocating legislation that potentially could affect those companies’ stocks. Rep. Tom Price bought and sold stock in about 40 health-care, pharmaceutical and biomedical companies since 2012, including a dozen in the current congressional session.
The study found that grades and achievement-test results were markedly better predictors of adult success than raw IQ scores. That might seem surprising -- after all, don’t they all measure the same thing? Not quite. Grades reflect not just intelligence but also “non-cognitive skills,” such as perseverance, good study habits and the ability to collaborate -- in other words, conscientiousness. To a lesser extent, the same is true of test scores. Personality counts.
With support of venture capitalists like Andreessen Horowitz and Union Square Ventures, Olaf Carlson-Wee is launching a strategy that invests in cryptocurrencies. The $10 million managed by Carlson-Wee's Polychain Capital is peanuts in the hedge fund world. But Polychain's strategy is rare, with few other funds trading in cryptocurrencies. Most hedge funds trade stocks, bonds, and currencies, with variations of different strategies.
Preliminary year-end figures for capital markets and M&A revenues show investment banks have earned $15.6 billion in Europe. This represents at 17% fall on 2015's total and means 2016 will likely end as the least lucrative for 13 years, according to Dealogic.
Never before has a U.S. president stocked his cabinet with as many businessmen as Mr. Trump is aiming to. While putting up a Goldman Sachs Group alum like Steven Mnuchin for Treasury secretary counts as almost status quo, tapping Exxon Mobil Chief Executive Rex Tillerson for secretary of state, and fast-food chain executive Andy Puzder as labor secretary shows how highly Mr. Trump values business experience—and how focused he is on reshaping the regulatory environment in businesses’ favor.
2016 has been the most exciting year in recent times—with the a huge anti-establishment wave in politics across the world, and what looks like an important change in trend across markets. Many now boldly predict the bond bull market to be over, a renewed bull market in stocks, and oil prices to head higher.
The Bank Underground Christmas Quiz (Bank of England)
Bank Underground is about to take a hard-earned festive break. But before the blog goes off on its Christmas holidays, it’s time for the now annual tradition of the Bank Underground Christmas Quiz. Test your knowledge on our ten festive themed questions on economics, finance and all things central banking…
An explosion occurred at 4:01 p.m. on Thursday when Tiger Woods decided to — for some reason unknown to man, or beast, or god, or whatever hell demon has possessed the earth to make this the least surprising thing that’s happened this year — put this image of himself on the internet.