May 13
WASHINGTON – The $2 billion trading loss at JPMorgan Chase has renewed calls for stricter oversight of Wall Street banks. Two years after Congress passed an overhaul of financial rules, many of those changes have yet to be finalized.
JPMorgan’s misstep gives advocates of stronger regulation an opening to argue that regulators should toughen their approach.
The Obama administration has argued that it went as hard on banks as possible without further upsetting global finance. Now Democratic lawmakers and administration officials say JPMorgan case proves that more change is needed.
Still, many in the industry warn against reading too much into one trading loss. They say losing money is an inevitable part of taking risk, as banks must.
Some fear that after JPMorgan’s announcement, regulators will greet industry concerns with more skepticism as they flesh out key parts of the overhaul law.
THE VOLCKER RULE
This provision restricts banks’ ability to trade for their own profit, a practice known as proprietary trading.
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Tags: Rules
May 13
The big business of sports may have a new challenger. Endorsement deals, giant salaries, big name sponsorships this is what we’ve come to expect when we watch our favorite teams compete at their huge stadiums broadcast on major television networks. But what about the lesser-known, lesser-viewed sports? And the athletes who don’t have broad appeal and access to these sorts of lucrative deals? How do they support their athletic hopes?
That’s the subject of a Mike Pesca’s report on NPRs Morning Edition: Olympic Runners Find Unique Ways To Raise Funds. A few athletes are changing the way they get paid to compete. For Anthony Famiglietti, a steeplechase runner, the reason for looking for alternative sponsorships was fairly simple. None of the shoes produced by shoe companies willing to sponsor him fit comfortably. He literally could not compete in their products.
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May 12
For 18 consecutive quarters, from Q2,’02 through Q3,’06, S&P 500 operating earnings increased at least 10% each quarter. Initially the gains were a rebound from the earnings declines of the 2000-2002 Bear market and recession, and later on they were reflective of an accelerating market and recovering economy. Then came the housing bust, liquidity, unemployment, and for a brief period, true fear. However, with Q1,’11 earnings mostly behind us (97% reported), the S&P 500 has now posted five consecutive quarters of double-digit earnings gains. Based on current estimates through Q4,’12, the index is expected to post another seven consecutive quarters of double-digit gains, bringing the run to at least 12. In addition, Q3,’11 is expected to post an all-time high for earnings, at US$ 25.09 per S&P 500 share (or US$ 228.7 billion in aggregate), outpacing the current record of US$ 24.06 (US$ 213.7 billion in aggregate) set in Q2,’07. Read more…
May 09
Check out our recent coverage on GoBankingRates.com, Dont Let Your Medical Bills Bankrupt You!
A few months ago, NerdWallet went through the painstaking process of selecting 10 personal finance apps that were good enough to be called our favorites. We’re nerds, so as you can imagine, we’re pretty picky about our financial management tools. Expensify, an expense report app for iPhone, Android, BlackBerry and Windows Phone, was good enough to meet our nitpicky specifications. If you’re looking for an easy way to organize your receipts and get reimbursed for your business expenses, they’ve got your back. Sure, Expensify is easy to use, and it lets you track pretty much every purchase under the sun, but as of May 8th, it just got even more useful for traveling. As a company that specializes in both consumer-friendly financial products and travel, we couldn’t help but take notice.
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