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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?


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]


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.


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.

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