Posts Tagged ‘derivatives’

Quick Hit: “Dimon or Rust?”

Dimon’s JP Morgan announces $2 billion in trading losses!

An outspoken opponent of the Volcker Rule and other banking and financial regulations, Jaime Dimon, CEO of the nation’s biggest bank, discloses the huge losses and proves the need for more comprehensive banking oversight.

Touted as the brilliant banking executive who avoided the ravages of the financial crisis, has Dimon now become the poster boy for stronger regulation?

The scandalous nature of this trading loss, which may grow to over $4 billion, has undeniably tarnished Dimon’s star.

But this isn’t the first scandal at JP Morgan!

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Quick Hit: “A Step Backwards in Arkansas?”

An important Primary Election was held in Arkansas on Tuesday.

Incumbent Senator Blanche Lincoln defeated primary challenger Bill Halter by a narrow margin in an effort to keep her seat on the Senate.

It was an important election for many reasons with maybe the most important being hard-working people verses the corporations.

Unions, tired of being snubbed by a moderate Senator, backed Lieutenant Governor Halter to seat a Senator that would vote for the people—those the Senator is supposed to represent.

A look at Senator Lincoln’s campaign contributions reveals why she voted against healthcare, before she voted for it. She has received nearly a million dollars in campaign contributions from healthcare and healthcare professionals, hospitals, and pharmaceutical companies over the last 5 years. She has also taken over $830,000 from financial services institutions, and $300,000 from lobbyists.

More recently Senator Lincoln introduced an amendment to the FinReg Bill dealing with derivatives which would make them more transparent and bring them out of the shadows and into the light. It is hated by financial institutions but may have been a pre-election move of atonement for all the destructive votes she’s made since 1999.

She had help from the President and the still popular Arkansas pol, Bill Clinton, and barely squeezed out the victory.

The Halter campaign fell short, but receiving 48% of the vote against a multi-term incumbent should be viewed as a victory for labor, despite the loss.

And, though Lincoln has her work cut out for her against Republican opponent John Boozman in the general election, she may have learned a valuable lesson in her hard-fought primary contest.

In her acceptance speech she told her supporters and the voters of Arkansas that she heard them. Hopefully she understood what they were saying to her. It was clear that working ‘for the people’ should be on the top of her list of priorities.

Her first priority should be to push the toughest derivatives bill she can through the Senate. ‘The people’ deserve to know how much damage the derivatives market is going to wreak on the financial world before it’s too late. Arkansans deserve her best efforts.

It’s time our Senators and Representatives do something good for the country instead of for corporations and the top 1% of the population.

This country can no longer tolerate corporate lap dogs in their political houses.

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“Surrounded by Warning Signs!”

Could the stock market still feel the pain of a double dip?

The market had a huge scare last week which left Wall Street reeling!

Traders, analysts, and everyone on Wall Street are worried that this might not just be a glitch. They’re calling it a “flash crash” but it could be one of the many warning signs that the market is just two converging economic crises from a meteoric fall to a new bottom?

The new bottom—a more realistic bottom given all the band aids that have been applied to this economy—could be the second leg of the double dip. There is compelling evidence, largely ignored, that the March low of 6,547 could be tested again.

Despite the rising markets there has been a pall over the trading floors for sometime. And rightly so. The signs are there and they are many.

But does that indicate a double dip?

Last Thursday, David Hefty, CEO of Cornerstone Wealth Management appeared on Squawk On the Street and identified several of the huge warning signs that threaten the global markets.

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Posted in Economy, Markets, Wall Street | 1 Comment »

“Break ‘em Up!”

There are many reasons why we need to break up the behemoths of finance!

The taxpayers saved their affluent asses. The Big Banks, along with their highly compensated executives, were headed over the cliff with nothing to stop their fall, and we bailed them out!

Break ’em Up!

Congress, in a panic, saw fit to give taxpayer dollars to the self-destructive creators of the financial crisis to prevent a catastrophic meltdown of the U.S. economy, without even asking us.

We’re told over and over that TARP was successful, that Congress’ decisive actions saved the economy and that we should be eternally grateful. We’re reminded that the Big Banks are again stable. They’re back to making billions of dollars—and the economy is improving.

For whom?

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Posted in Banking, Economy, Too Big to Bail | Comments Off