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Jul 16, 2010

THE GATA DISPATCH : FT stumbles into central bank admissions of market manipulation. July 16th., 2010

FT stumbles into central bank admissions of market manipulation

Submitted by cpowell on 07:31AM ET Friday, July 16, 2010. Section: Daily Dispatches Puzzle over Banque de France's Lehman Role
By Henny Sender
Financial Times, London
Wednesday, July 7, 2010
http://www.ft.com/cms/s/0/7834dc62-89e5-11df-bd30-00144feab49a.html
When Lehman Brothers engaged in the Repo 105 deals that flattered its balance sheet to the tune of $50 billion, a string of powerful banks acted as counterparties. But according to financial experts sifting through the Lehman wreckage, there was one surprising name on that list: the Banque de France.
In the final months before Lehman's demise, the Financial Times has learnt, the French central bank was often on the other side of the bank's deals, taking collateral in the process.
The reason for its involvement as a counterparty is unclear.
There is no suggestion that it was seeking to present Lehman's balance sheet in a better light. But its presence as a counterparty raises questions about the roles played by central banks in markets and how much of that activity should be made public. The Banque de France continued to cut deals with Lehman even as other private sector enterprises were cutting their ties with the bank -- or demanding "ridiculous levels" of compensation to engage in such dealings, according to internal Lehman e-mails included by Anton Valukas, the Lehman Examiner, in his report.
When Lehman collapsed, the French central bank, like the private-sector participants, was forced to unwind the deals, selling the collateral it had taken as part of the counterparty transactions. It did this for a profit, which then went to the Lehman estate, according to financiers involved in these deals.
The French central bank has not commented on this deal in public and declined to do so when contacted by the Financial Times. However, the saga points to a wider aspect of modern global financial markets. For while private sector banks' repo deals have grabbed attention, in fact central banks have long engaged in repo transactions, swaps, and other financial dealings -- not just with each other but with the private sector.
These opaque deals, sometimes struck by central banks to maintain confidence in the health of troubled institutions, can have an unseen impact on the behaviour of markets.
The best-known examples date from a couple of decades ago.
In one case, the Bank of Japan and the Bank of England engaged in repo transactions that kept Salomon Brothers alive after it was indicted for its behaviour in the US government bond markets.
Central banks have also sought to shore up the balance sheets of other central banks and to stabilise markets, as the US did with Mexico in the 1990s.
"Such manipulation is not uncommon and practised by central banks, financial institutions, companies, and countries," said Gunter Baer, former superintendent of the Bank for International Settlements, the "central banks' central bank."
The issue has come to the fore again as the eurozone debt crisis has unfolded.
In October 2008 amid the turmoil that followed Lehman's collapse, the National Bank of Hungary disclosed that it had entered into a E5 billion repo line with the European Central Bank, giving the cash-strapped government a source of funding.
It was only in May this year that the Hungarian central bank disclosed that it had converted half of that line into a swap line in January, in order to secure access to foreign exchange.
"For months it was never disclosed," one senior ECB official said. "In principle, it could have been used at the government's request."
Government officials and economists disagree over how much should be disclosed about this kind of financial support.
When Mexico was going through its financial crisis in the 1990s, the US Fed and the Treasury engaged in agreements with the Mexican central bank that apparently gave its struggling southern neighbour access to large dollar lines from the US in return for pesos credited to the US.
But it also gave the impression that the Bank of Mexico had large and growing dollar reserves. The fact that the dollars were locked up in New York and that Mexicans could not use the swap lines to access dollars was never disclosed, according to Fed officials past and present.
"In those days, transparency was not as prevalent," said Ted Truman, a former official at both the Federal Reserve and the Treasury and now a senior fellow at the Peterson Institute for International Economics. "We wanted to do a swap line so they could just say they had enough money."
When Argentina came under similar pressure, the BIS stepped in with similar support, Mr Truman said.
In other cases, banks have helped cash-strapped governments through gold swaps, as the BIS did with Yugoslavia in the 1990s, central bankers said.
"Exchange markets tended to assess the ability of central banks to defend their exchange rates on the basis of foreign exchange reserve holdings," Mr Baer said.
Today, such transactions have become less frequent -- and nothing spooks bond market investors more than a sense of incomplete or misleading information.
That, after all, is one of the reasons Greece and Hungary are in the headlines today. The Fed, for its part, decided such transactions were manipulative and has abandoned them, Mr. Truman said.
"Regulators and supervisors have been taking a much closer look at these practices and some of the obvious loopholes have been removed," Mr Baer said. "But by no means has the scope for manipulation been fully removed."
* * *
Lehman Was No Exception for Banque de France
Financial Times, London
Thursday, July 8, 2010
http://www.ft.com/cms/s/0/12d93f94-8abb-11df-8e17-00144feab49a.html
Sir:
With reference to your report "Puzzle over Banque de France Lehman role" (July 7):
Central banks, in the conduct of monetary policy, or in the management of their reserve portfolios, regularly conduct transactions with a large number of international commercial and investment banks. Banque de France is no exception in this regard.
All central banks hold US dollar-denominated assets. As such they engage in counterparty relationships with US-based institutions and their European-based affiliates. For Banque de France, Lehman Brothers was one among a number of counterparties.
Our selection of counterparties and the modalities of our relationships are guided by the sole motive of portfolio management and the protection of our patrimonial interests, for which the central bank is accountable.
Risk management considerations dictate that transactions are concluded with a large number of counterparties, and there has not been any specific policy as regards Lehman Brothers.
For the management of its portfolios, Banque de France, like many central banks, conducts a variety of market transactions. Reverse repos are always collateralised by assets, and conducted within the frame of standard market contracts (master agreements) to manage the cash position of the portfolios. These contracts allow one of the parties to trigger an early termination of the transactions when the other party is unable to fulfil its obligations.
Regarding Banque de France's past operations with Lehman: first, monetary policy -- when Lehman Brothers Paris was put under administration, Banque de France sold in the market the collateral pledged by Lehman, and the excess over the compensation payment was returned to the administrator of the bank. We communicated on these transactions.
Second, reserve management -- the open transactions we had with Lehman's entities in New York and London were terminated according to the terms provided by the different master agreements with these counterparties, and the collateral sold.
Christian Noyer, Governor
Banque de France

* * *

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Hilton New Orleans Riverside Hotel
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THE GATA DISPATCH: reuters actually puts gold questions to bis, which clams up

Reuters actually puts gold questions to BIS, which clams up

Submitted by cpowell on 01:33PM ET Friday, July 16, 2010. Section: Daily Dispatches BIS Footnote Unlocks Major Development in Gold Use
By Jan Harvey and Veronica Brown
Reuters
Friday, July 16, 2010
http://uk.reuters.com/article/idUKLNE66F03J20100716
LONDON -- A small footnote in the Bank of International Settlements' latest annual statement has flagged up a potentially major development in the way the metal can be used as an active financial instrument.
But its ultimate impact on the bullion market is dependent on the identity of the counterparty in the swap -- a topic still being hotly debated in the gold community in Europe.
The BIS noted in Page 163 of its annual report, released in June, that its gold holdings included 346 tonnes of gold "which the bank held in connection with gold swap operations, under which the bank exchanges currencies for physical gold."
When analysts picked up on the move, it sparked a flurry of speculation over who the counterparty was, the origin of the gold, the impact on the market and what it said about the extent of bank stress at the height of Europe's sovereign debt crisis. The BIS said the gold in question was used for "pure swap operations with commercial banks" but declined to respond to further questions from Reuters on the transaction.
The largest question mark hangs over where commercial banks would have found 346 tonnes of gold -- worth around $13.5 billion (8.8 billion pounds) at today's prices -- for such an operation.
In an interview with Reuters Television this week, GFMS Chairman Philip Klapwijk said commercial banks may have had enough unallocated gold on deposit to make up such a tonnage.
But even the largest commercial banks would struggle to trade that amount on an annual basis, and as this would be on behalf of clients, it would be unavailable for swaps.
"No commercial bank has ever had 350 tonnes of gold to swap," said Commerzbank analyst Eugen Weinberg. "Even 10 tonnes seems out of range."
If the gold were sourced from unallocated gold accounts, that would also raise questions over the viability of the bank effectively pawning its clients' gold to support itself.
More likely, analysts say, is that the gold was sourced from the official sector, with a central bank loaning gold to a commercial bank or banks that used it to raise currency.
"Just as the bullion banks were the go-betweens between the producer and the bullion market in the days when there was gold hedging being done, in the same way the producer may have now been replaced by the central bank, and the investment bank may be the conduit," said Credit Agricole analyst Robin Bhar.
The timing of the swap, which is likely to have taken place in December or January, suggests it may have been done by European commercial banks needing to source liquidity during the sovereign debt crisis of early 2010.
Of those countries on the front line of the crisis -- Portugal, Greece, and Spain -- only Portugal has enough gold to have covered the swap, with 382.5 tonnes in its reserves. Portugal's central bank declined to comment on the deal.
But analysts point out that banks in the nations closest to the euro zone sovereign debt crisis are not the only ones exposed to it. Commercial banks elsewhere also have exposure to problems in southern Europe.
Until recently the amount of gold that could be used in swap operations by European central banks was limited by the Central Bank Gold Agreement, which was designed to prevent disruption of the gold market by official sector activity.
In the first two CBGAs of 1999 and 2004, signatories agreed not to increase their activities in the derivatives and lending markets above the levels of Sept 1999. But the third pact, which came into force in September 2009, included no such commitment.
So what does this mean for the gold market? The swap was first seized on as bearish, as some claimed it could lead to the BIS selling the metal on the market in the case of a default.
But that the gold was mobilised for temporary financing without being sold was ultimately identified by analysts as positive.
"In conversations with clients we are consistently asked why central banks do not sell some or all of their gold to reduce their debt burden," UBS analyst Edel Tully said. "The latest CBGA figures, in addition to wider sovereign activity, indicate that central banks do not want to sell their gold in 2010. The BIS swap operation highlights that central banks can mobilise their gold without selling it."
A lot will depend on the risk of default. If the counterparty in the transaction fails to redeem the gold, it could hit the market, with heavy consequences for prices.
The thesis that the swaps are connected to the financial crisis is one that can be tested. Analysts will be closely watching the next BIS statement in early August for signs that the swaps are rising, or being closed out.
"We can monitor its progress relative to the funding crisis, so if the euro crisis quietens down after the stress tests, it will go away," said Andy Smith, senior metals analyst at Bache Commodities. "If it blows up again, it should expand."

* * *

Join GATA here:
New Orleans Investment Conference
Wednesday-Saturday, October 27-30, 2010
Hilton New Orleans Riverside Hotel
http://www.neworleansconference.com/redirect.php?page=index.html&source_...
* * *
Support GATA by purchasing a colorful GATA T-shirt:
http://gata.org/tshirts
Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:
http://gata.org/node/wallstreetjournal
Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:
http://www.goldrush21.com/
* * *
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
http://www.gata.org
To contribute to GATA, please visit:

http://www.gata.org/node/16

Dear Friends:
Adam Hamilton has posted his weekly Zeal Intelligence Newsletter on the Mining Interactive Website. Click here:
Have a great weekend and - - - Stay Tuned!!

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www.mininginteractive.com

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MarketWatch Personal Finance Daily - Personal Finance Stories. July 16th., 2010

MarketWatch
Personal Finance Daily
JULY 16, 2010

Friday's Personal Finance stories

By MarketWatch



Don't miss these top stories:

Are you a market-timer investor, watching trends and moving in and out of the stock market ahead of the crowd (if all goes well), or are you a buy-and-holder, plugging your money into a few key mutual funds and hoping time, and diversification, do the trick?

Read Sam Mamudi's Weekend Investor story today for a look at how market timing is appealing to more investors in these worrisome and volatile times. Of course, as Mamudi notes, there are gradations between the buy-and-hold and market-timing strategies. You could buy and hold for a significant amount of time, keeping an eye on trends all the while.

And for another point of view on this topic, don't forget Paul B. Farrell's column earlier this week on our Lazy Portfolios: eight distinct strategies aimed at those investors who are focused not on the next 10 minutes or even 10 days, but on the next 10 or 20 years. Read Paul Farrell's Lazy Portfolio column.

No matter what type of investor you are, it's only getting harder to understand the latest trends. Read Rex Nutting's First Take column today for a look at July's 9.5-point drop in the consumer sentiment index. The index has fallen this steeply only six other times, and all of those declines were preceded by major shocking events. As Nutting notes, the latest sentiment reading may simply be a sign that Americans have reached a breaking point after all the bad news in recent months.

And today the market had its worst day in weeks. TGIF.

-- Andrea Coombes , Personal Finance editor

Market-timing strategies score big with tense investors

Volatile stock markets have left investor confidence in tatters. Now some say it's time to accept the turmoil and adopt more dynamic trading strategies.
See Weekend Investor.


REAL ESTATE

Short sales get lender scrutiny for a reason

Question: In your June 4 column, you mentioned that a lot of lenders are denying short sales due to the homeowner showing that he can make his loan payments. Can you explain this a little more?
See Realty Q&A.


Do you regret buying your home? Most people don't

In a housing market like this, you'd expect a good deal of buyer's remorse out there. But 90% of homeowners say they don't regret buying their current home, according to a survey released this week by Bankrate.com.
See Real Estate Weekly.


PERSONAL TECH

Droid X adds to the challenge of choosing a smart phone

Deciding to buy a smart phone is the easy part. With dozens of models on the market -- add one more after Motorola's Droid X went on sale Thursday -- picking your perfect phone requires hours of research on countless details. But if you prioritize your favorite features, the decision-making process may be less painful.
See story on Droid X adds to the challenge of smart-phone shopping.


Why your wireless plan costs too much

Apple will tell people Friday what it plans to do about the troubled new iPhone 4. But the craziest thing about the new device isn't the much-criticized antenna. It's that most of those who have bought one already had a perfectly good iPhone to begin with.
See story on why your wireless plan costs too much.


Apple addresses iPhone reception issues

Apple Inc. addressed the growing complaints about the reception of its iPhone 4 on Friday, saying it will give a free case to all buyers of the device through the end of September, but that the problem has been "blown way out of proportion" in the media.
See story on Apple addresses iPhone reception issues.


Commentary: Apple's Antennagate solution far from perfect

Apple Inc.'s response to the iPhone 4 reception issue was not really the response that its toughest critics had been hoping for.
See MarketWatch First Take on Apple's iPhone 4 solution far from perfect.


HEALTH CARE

Whooping cough outbreak: what you need to know

California has declared a whooping-cough epidemic and other states are reporting outbreaks also. For some adults, now might be the time to consider a booster shot of the vaccine, MarketWatch's Kristen Gerencher says in this week's Health Minute.
 Watch video on whooping cough outbreak and vaccines.


INVESTING

Commentary: Top performers and their top funds

I have both good and not-so-good news to report after reviewing the advisers with the best long-term records.
See story on top performers and their top funds.


Commentary: Don't invest in solar... unless

This past week, the big Semicon West show was in town and with it a parallel show called Inter-Solar where all the solar infrastructure companies showed off their panels, water tubes and motorized array mechanisms.
See story on don't invest in solar.


ECONOMY & POLITICS

U.S. consumer prices fall in June

The prices that U.S. consumers pay for goods and services fell slightly in June, mainly because of lower gasoline costs, the government reported Friday.
See story on U.S. consumer prices.


U.S. July consumer sentiment plummets

U.S. consumer sentiment plummeted in early July, hitting the lowest level since August, according to survey results released Friday by Reuters and the University of Michigan.
See story on U.S. July consumer sentiment plummets.


Commentary: Consumer sentiment's mysterious freefall

It's no secret that Americans are depressed. The economy is barely growing, job growth is anemic, raises are rare, house prices are falling, the stock market is down, and oil is spreading across the Gulf.
See MarketWatch First Take on consumer sentiment's mysterious freefall.


CARS

U.S. car makers score high marks in survey

Drivers are enjoying U.S. cars more than those rolled out by the overseas competition for the first time since 1997, according to a recent survey by J.D. Power & Associates.
See story on U.S. car makers score high marks in survey.

MarketWatch .- WeeKly Roundup.- MarketWatch's Top Stories. July 16th., 2010


MarketWatch

Weekly Roundup
JULY 16, 2010


MarketWatch's top stories of the week

By MarketWatch



BOSTON (MarketWatch) -- It could've shaped up to be a good week. After all, the Senate pushed through a vote on bank reform, bellwether earnings weren't all that bad, BP finally seems to have halted the spewing oil in the Gulf, the Northeast got a small reprieve from the heat wave -- and last but not least -- Apple announced plans to rectify "Antennagate."

Nevertheless, U.S. stocks ended the week on a sour note, as the Dow Jones Industrial Average plunged more than 250 points Friday.



Earnings season, which unofficially got under way this week, started off with upbeat reports from metals producer Alcoa (AA) and railroad operator CSX Corp. (CSX) on Monday and chip giant Intel on Tuesday.

But then, cloudy economic data began trickling in, including minutes from the Federal Reserve's last policy meeting and a report that U.S. retail sales dipped in June, causing the Dow to just barely hold on to a seven-day winning streak Wednesday.

The declines began piling up Thursday, but the indexes pared losses by the end of the day on news that Goldman Sachs settled with the Securities and Exchange Commission and that BP finally capped its well in the Gulf of Mexico. Reasons for optimism, right?

Wrong.

The Dow (DJIA) fell 261.41 points, or 2.5%, to close at 10,097.90 Friday, as investors registered their displeasure with soft top-line results from Bank of America (BAC), General Electric (GE) and Citigroup (C), as well as declining consumer confidence. For the week, the blue-chip index lost 0.98%.

The Nasdaq Composite Index (COMP) dropped 70.03 points, or 3.1%, to close at 2,179.05 on the day and lost 0.8% for the week. The benchmark Standard & Poor's 500 Index (SPX)fell 31.60 points, or nearly 3%, Friday to close at 1,064.88. For the week, the index declined 2.9%.

Stay tuned to MarketWatch over the weekend, where we'll have all the news you need. We'll be featuring a look at the growing popularity of market-timing strategies as well as a preview of the Farnborough Airshow, where the aerospace-industry elite will be gathering next week.

Please take a moment to view our Week Ahead videos on the U.S., Europe and Asia.

-- Michelle Donley , assistant managing editor

Bank reform moves ahead

Handing President Barack Obama a victory in his effort to rein in Wall Street, the Senate approved the most historic shakeup of the regulation of U.S. banks since the Great Depression. The legislation would place new fees and restrictions on the nation's biggest banks, impose new restrictions on the Federal Reserve and craft a major new consumer-protection division for mortgage and credit-card products. Read more about the bank-reform legislation .

Settling with the SEC

Goldman Sachs (GS) agreed to pay $550 million to settle a civil fraud suit brought by the Securities and Exchange Commission, tackling a legal problem that had threatened to undermine the investment bank's client relationships. As part of the settlement, Goldman acknowledged that marketing materials for a collateralized debt obligation it sold were "incomplete" and that it should have revealed the role hedge-fund firm Paulson & Co. played in constructing the vehicle. However, the investment bank settled without admitting to or denying allegations. Read more about Goldman's settlement .

Just-in-case stimulus

Federal Reserve officials agreed it would be a good idea to study what to do if the economy were to worsen severely, according to a summary of June's closed-door meeting released this week. Officials said the outlook for the recovery had softened between April and June, but changes to their forecast were "relatively modest" and "not warranting policy accommodation beyond that already in place." Read more about the Fed minutes .

China on course for 'soft landing'

China reported a slowdown in second-quarter economic growth, along with an easing in a number of other indicators for June, showing the nation's rapid expansion was beginning to cool as Beijing withdrew some accommodative policies. Analysts said the slower growth was in line with Beijing's goals after a period of rapid expansion triggered by government-led stimulus and expansive bank lending. Read more about the slowdown in China .

New cap holds for BP

BP shares (BP) slipped Friday as euphoria over the company's apparent success in stopping the flow of crude from its ruptured well gave way to the realities surrounding the worst oil spill in U.S. history. In its latest update, BP said the well cap continues to hold. But the ruptured well isn't dead yet, prompting a cautious tone from President Obama in his remarks on the spill. Read more about BP's efforts to contain the leak .

Free case for iPhone 4

Apple (AAPL) Chief Executive Steve Jobs said the company would give free cases to iPhone 4 customers as part of an effort to alleviate concerns about the device's antenna problems. Jobs also said that the problem has been "blown way out of proportion" by the media. Read more about Apple's issues with its iPhone .

Droid X poses shopping challenge

Deciding to buy a smart phone is the easy part. With dozens of models on the market -- add one more after Motorola's (MOT) Droid X went on sale Thursday -- picking your perfect phone requires hours of research on countless details. But if you prioritize your favorite features, the decision-making process may be less painful. Consider the strengths and weaknesses of three leading smart phones .

Battle of the old-time brands

Hugh Hefner and Henry Kravis, two great American success stories, are planning one more encore. Kravis moved shares of his leveraged-buyout firm, KKR (KKR), to the New York Stock Exchange from Amsterdam. And Hefner made a bid for Playboy Enterprises (PLA). Both Hefner and Kravis carry a lifetime of baggage as public personalities, loaded with huge scores and embarrassing losses. Investors can bet with them or against them on these latest adventures, but they should not ignore them. David Callaway explains why. Read his column on KKR and Playboy .

Buzz for 'Starcraft II'

At the headquarters of Blizzard Entertainment, developers were putting the finishing touches on 'Starcraft II," a futuristic science-fiction strategy game built for the PC that was first released to the public 12 years ago, and has had gamers waiting in heavy anticipation for the next release -- currently slated for the end of this month. Expectations are high. Analysts believe "Starcraft II" will figure heavily in the bottom-line performance of Blizzard's parent company, Activision Blizzard (ATVI), for this year, selling several million units globally. Read more about hopes for Starcraft II.

Positive signs from Intel

Intel Corp.'s (INTC) unexpectedly robust second quarter sent ripples of optimism throughout a tech sector battered by warnings of weakening demand in a still-fragile global economy. But the chip behemoth's summer surprise also failed to erase lingering skepticism about tech's trajectory, as some analysts highlighted a disconnect between Intel's results and signs of a softening personal-computer market. Read more about Intel's results .

CNBC : Evening Brief - Apple's Solution for iPhone 4: A Free Protective Case. July 16th., 2010


LATEST STORIES


»click here to see the latest top stories from CNBC.com

LATEST VIDEO

 Rating Apple's Response
Discussing whether Steve Jobs' and Apple's response was adequate to handle the antenna issue with the new iPhone 4, with Mike Abramsky, RBC Capital Markets, and CNBC's Jim Cramer
» Watch Video

President Obama on Oil Cap
President Obama discusses the effectiveness of the new cap used to contain the oil spill in the Gulf.
» Watch Video

Goldman Settles with the SEC
Goldman Sachs agreeing to pay a record $550 million to the SEC, with Robert Khuzami, SEC director of enforcement.
» Watch Video

Reaction on the Street
Discussing the impact of the financial regulation reform bill, with John Taft, SIFMA chairman-elect.
» Watch Video

 

RTTNews Evening Market Wrap. Stocks Plummet To End Week As Consumer Sentiment Deteriorates - U.S. Commentary July 16th., 2010

Evening Market Wrap Fri Jul 16 17:01 2010  Fri Jul 16 17:01 2010

Commentary

Jul 16, 2010 Stocks Plummet To End Week As Consumer Sentiment Deteriorates - U.S. Commentary Stocks ended the week sharply lower on Friday, as a substantial drop in July's consumer sentiment reading, lackluster earnings and uncertainty regarding the contents of the freshly passed financial reform bill all drove capital out of the markets. Full Article

FGC BOLSA - FGC FINANCIAL MARKETS : Smackdown 2 .- A new champion emerges




INDUSTRY - FINANCIAL SERVICES


Smackdown 2: A new champion emerges  
By MarketWatch
7/16/2010 5:00:00 PM



LOS ANGELES (MarketWatch) -- MarketWatch's Cody Willard took an easy win in the Smackdown 2 stock-picking competition against TheStreet's Scott Moritz. 



By Alistair Barr MarketWatch
7/16/2010 4:46:00 PM



Since the global financial crisis brought the U.S. banking industry to its knees two years ago, analysts and investors have been waiting eagerly for a time when things get back to normal. Results this week from the nation's three largest banks sparked concern that "normal" won't be anything like the fast-growing decade that preceded the crisis. 
See full story

The week's biggest winning and losing stocks

By Catherine Carlock MarketWatch
7/16/2010 3:58:00 PM


The following are the S&P 500 (TICKER:SPX) stocks that clocked the best and worst performance for the week ended July 15 



FOX BUSINESS: Breaking Business News .- DOW CLOSES DOWN MORE THAN 250 POINTS ON DISAPPOINTING EARNINGS, CONSUMER DATA


05 2010 Traders 06 276
Dow Down 1% for WeekThe Dow sank 261 points to end the week in the red as consumer sentiment and earnings weighed on investors.

THE MOST POWERFUL NAME IN BUSINESS NEWS

Illinois Facing $13B Deficit

Is the World Broke? With a debt rating lower than that of Portugal, Illinois is on shaky economic ground.

What Deep Pockets You Have, Goldman

Settling with the SEC could open the door for other institutional investors to seek some revenge.

Apple CEO Makes His 'Case'

Steve Jobs promised free cases to iPhone 4 users, attempting to quell hardware flaw rumors.

SEC Creates Three New Units

The SEC created units to focus on financial firms' complex securities and securities.

Insurance Options for Unemployed

here’s eight tips for keeping the cost of health care down when you are out of work.

U,S. Markets at Close. July 16th., 2010


U.S. Markets At Close


Market Snapshot
Index Last Change %Change  
DJIA 10,097.90 -261.41 2.52%  
Nasdaq 2,179.05 -70.03 3.11%  
S&P 500 1,063.75 -32.73 2.98%  
FOX 50 776.11 -22.05 2.76% Hilighted
DIJA Chart
 

Forbes Alerts : All eyes on Financial ETFs Trade Down





 All Eyes on Financials!  ETFs Trade Down.

The Senate passes landmark financial reform and Goldman Sachs pays the largest-ever fine to the SEC.

Click the link below to read the full story:
http://www.forbes.com/2010/07/16/all-eyes-on-financials-etfs-trade-down-marketnewsvideo.html?partner=aler

Forbes :Investment How to Invest the Rest of 2010



How To Invest For The Rest Of 2010
David K. Randall
Dividend-payers and foreign stocks top shopping lists after a tough first half.


Fixed Deferred Annuities: CDs With Gotchas
Mel Lindauer
Watch out for teaser rates, surrender fees and an insurer's credit rating.
 
Conflicts Of Interest Common In Estate Planning
Stephen J. Dunn
Here's what you should know to protect yourself and your family.
 
Dividends, Interest Rates And Their Effect On Stock Options
Jim Graham
Analyzing these variables is crucial to knowing when to exercise early.
 
Ten States Where Unemployment Is Falling
Claire Bradley
The numbers don't lie: unemployment is still high in the U.S, but there are places where things are looking up.

FGC BOLSA - FGC FINANCIAL MARKETS: MarketWatch .- Industry - Financial Services.- Weekend-Market Timing Scores Witjh Tense Investors






INDUSTRY- FINANCIAL SERVICES



Weekend Investor: Market timing scores with tense investors  
By Sam Mamudi MarketWatch
7/16/2010 2:02:00 PM



Volatile stock markets have left investor confidence in tatters. Now some say it’s time to accept the turmoil and adopt more dynamic trading strategies. 


 
By Deborah Levine MarketWatch
7/16/2010 1:36:00 PM



After a 9.2% gain in just over a month, the euro may be close to a precipice, analysts say. 




REAL CLEAR POLITICS: July 16th., 2010


Real Clear Politics Friday

New Law Remakes U.S. Financial Landscape - Paletta & Lucchetti, WSJ
Dodd-Frank Ignores Root Cause of Collapse - Henry and Kotlikoff, Forbes
Bill is a Start That's Better Than Nothing - Clive Crook, The Atlantic
Does This Bill Really End Too Big to Fail? - Gillian Tett, Financial Times
Can You Hear Goldman Laughing? - Tunku Varadarajan, The Daily Beast
How the Dems Can Stop a GOP Blowout - Eugene Robinson, Washington Post
The Backlash: Democrats Still Don't Get It - Rich Lowry, New York Post
Why Dems Needn't Fear the Ghosts of 1994 - Rebecca Kaplan, Slate
Both Sides Wrong About Obama & Business - Jonathan Chait, New Republic
Business Knows More Than Obama - Larry Kudlow, RealClearPolitics
GOP Wants to Redo Voodoo Economics - Paul Krugman, New York Times
Hey, Debt Commission: It's the Spending, Stupid - John Merline, AOL News
Will Dodd-Frank Backfire on Dems? - Kimberley Strassel, Wall St. Journal
The Nine Lives of Tim Geithner - Simon Johnson, Baseline Scenario
Karl Rove's Mea Culpa - Andrew McCarthy, National Review Online
Is Attacking Iran on the Table? - Joe Klein, Time
Mr. Cameron, Don't Follow Obama - Peggy Noonan, The Telegraph
Election 2010: NV Sen: Reid Takes LeadCT Sen: Blumenthal Up Big

Editorials

Financial Reform Passes - New York Times
Holder Should Drop the Arizona Suit - Washington Examiner
When Did It Become Racist to Point Out Racism? - Philadelphia Inquirer
Dems Should Drop Plans for Lame Duck Session - The Oklahoman