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Thursday, June 28, 2012

Big financial stories today

While the Supreme Court’s decision on health care is the big news, there’s other financial stuff, most of it bad.

First, remember that $2 Billion trading loss at JPMorgan Chase? Well, it may be $6 to $9 bllion. But who’s counting?

http://dealbook.nytimes.com/2012/06/28/jpmorgan-trading-loss-may-reach-9-billion/?nl=afternoonupdate&emc=edit_au_20120628 

Remember, they are “too big to fail” and obviously have been taking large risks with that government guarantee.

Second, there’s the likely guilty plea  of Peter Madoff, the brother.

A securities lawyer by training, Peter Madoff, 66, served various roles at the firm, including chief compliance officer and general counsel. [italics added]

http://dealbook.nytimes.com/2012/06/27/peter-madoff-expected-to-plead-guilty/?src=dlbksb

Third, there’s spectacular news that Barclay’s bank has been fined for manipulating Libor, one of the main indices used to determine adjustable rate mortgage adjustments (and other variable loans.

I remember reading a story about this in the Wall Street Journal in April, 2008 and being disgusted. This story seems to be what sparked the investigation. Kudos to the Journal, and I hope they get  some nice prize for potentially saving people millions of dollars.

http://online.wsj.com/article/SB10001424052702304830704577493092589081130.html 

And, of course, there’s further grimness out of the Euro zone, with long term Greek interest rates reaching levels impossible to imagine are workable. But that’s not news.