Opening Bell 12.6.18

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Law and north of the border [The Water Coolest]

Huawei CFO Meng Wanzhou was arrested in Canada, presumably by the Royal Canadian Mounted Police, this past weekend, after the US requested her apprehension for allegedly violating US sanctions. Wanzhou faces potential extradition to the US after a bail hearing scheduled for Friday.

Wangzhou, the daughter of founder Ren Zhengfei is the first arrest in an ongoing probe of Huawei, which is suspected of violating US-issued sanctions. The probe, which has been ongoing since 2016, accuses Huawei of selling US manufactured goods in Iran.

Huawei isn't the only Chinese phone maker that has been under the watchful eye of Uncle Sam. ZTE, another Chinese national company, has already been fined $1.2B for selling goods in Iran and North Korea.

Canadian Authorities Arrest CFO of Huawei Technologies at U.S. Request [WSJ]

Better late than never [The Water Coolest]

Wells Fargo has fired almost three-dozen retail district managers related to the sales scandal ... which came to light two years ago. If nothing else, the investigation was "thorough." Mary Mack (no, we're not making that up), the head of consumer banking at Wells sacrificed the peasants in hopes of appeasing the OCC (Office of the Comptroller of the Currency) Gods.

Wells Fargo Firing Dozens of Regional Managers in Retail-Bank Cleanup [WSJ]

Quant hardly wait [The Water Coolest]

Investment bank Nomura has cracked the case on what really caused the steep market drop earlier this week. Turns out that whole "3% drop in the market" thing wasn't just caused by some fiery tweets and inverted bond yields. It was those meddling, trend-following quants. Or was it?

Oddly enough, Nomura employs one of the most widely-followed quant traders on Wall Street, Charlie McElligot, who took the blame one step further, pointing fingers at Commodity Trading Advisers (CTAs).

A Tokyo-based Nomura trader didn't take kindly to the accusation, denying that the market fallout was driven by CTAs. Although it is not uncommon for there to be a difference of opinions within banks, the two leaders aren't exactly padding their "team player" stats for year-end with a public spat.

Quant Blame Game Over Stock Sell-Off Pits Nomura Against Nomura [Bloomberg]

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