Friday, October 24, 2008
Raymond James snags high-earning Merrill team
Raymond James snags high-earning Merrill team: "A veteran Michigan-based brokerage team at Merrill Lynch & Co. Inc. that produces $2.7 million in fees and commissions has bolted to Raymond James & Associates Inc., saying its clients are concerned about the financial stability of Merrill."
Regulators look for signs of manipulation near market close
Regulators look for signs of manipulation near market close - "U.S. securities regulators are trying to find out whether firms using the 'marking the close' technique are contributing to explosive volatility on stock markets near the close of trading. The Financial Industry Regulatory Authority said it was taking 'an extra close look' at the situation."
Cox Strongly Supports Merger Between SEC and CFTC
Of course he does - with him as the head of the new entity, no doubt. After all, he did such a great job with the SEC. Cox 'strongly' supports merger between SEC, CFTC - "Christopher Cox, chairman of the Securities and Exchange Commission, said a committee on regulatory reform of the financial-services industry should be established to explore a merger between the SEC and the Commodity Futures Trading Commission. 'It could tackle the challenge of merging the SEC and the CFTC, which I strongly support,' Cox testified at a congressional hearing. 'This would bring futures within the same general framework that currently governs economically similar securities.'"
Wall Street job losses could top 200,000
Wall Street Job Losses - Wall Street has already laid off 110,000 people in 2008 as a result of the financial crisis, and some experts see that number reaching 200,000 by the end of the year. Goldman Sachs Group said Thursday it would cut 3,200 jobs, or 10% of its work force. 'Wall Street the way we know it is, frankly, gone,' said Michael Williams, dean of the graduate school of business at Touro College in New York.
Wednesday, October 22, 2008
The fault, dear Brutus, is in ourselves
An editorial at Investment News raises the point that "Wall Street Greed" is not the cause of the current financial crisis, although it is the current poster boy according to politicians.
Of course, it is always easier to blame someone else, but this article points out that we, the guy in the street, are partly responsible for this crisis.
The fault, dear Brutus, is in ourselves - InvestmentNews
Of course, it is always easier to blame someone else, but this article points out that we, the guy in the street, are partly responsible for this crisis.
The fault, dear Brutus, is in ourselves - InvestmentNews
Firms Report More Losses
As expected, the brokerage firms continue to report losses:
Raymond James Q4 Net Drops 22%
Merrill Posts $5.2 Billion Loss, Fifth In A Row
Raymond James Q4 Net Drops 22%
Merrill Posts $5.2 Billion Loss, Fifth In A Row
Monday, October 20, 2008
Financial Rescues Can Set Off New Problems
An interesting analysis of the unintended consequences of the financial bailout from the Washington Post.
Financial Rescues Can Set Off New Problems
Financial Rescues Can Set Off New Problems
Friday, October 17, 2008
New Issue for Federally Registered Advisers
With the markets down 40% or so in the last few months, federally registered investment advisers are facing a new issue - the potential loss of the ability to maintain their federal registration.
Investment advisers with over $30 million in assets under management must register with the SEC. Advisers with assets over $25 million have the option to register with the SEC.
While those are the asset under management issues that have come up over the past few years, we are now seeing a new issue - what happens when my assets fall below $25 million?
Unfortunately, the answer is that you must withdraw your reqistration as a federally registered adviser, and switch to State registration. You must do so within 180 days of the end of your fiscal year where you fall below $25 million, unless you are back over $25 million at that time.
There are some exemptions and twists to that rule, so advisers should consult with their own legal counsel when making these decisions. The State registration process can be costly, and the annual maintenance costs are not insignificant.
Investment advisers with over $30 million in assets under management must register with the SEC. Advisers with assets over $25 million have the option to register with the SEC.
While those are the asset under management issues that have come up over the past few years, we are now seeing a new issue - what happens when my assets fall below $25 million?
Unfortunately, the answer is that you must withdraw your reqistration as a federally registered adviser, and switch to State registration. You must do so within 180 days of the end of your fiscal year where you fall below $25 million, unless you are back over $25 million at that time.
There are some exemptions and twists to that rule, so advisers should consult with their own legal counsel when making these decisions. The State registration process can be costly, and the annual maintenance costs are not insignificant.
Wednesday, October 1, 2008
The Financial Crisis: What Went Wrong?
I am just linking to this, because I am not a tax expert by any stretch of the imagination, and Profession Caron, from the University of Cincinnati College of Law, is one.
Take a couple of minutes and read it. No spin, no blaming Jimmy Carter or any other nonsense, just an analysis.
Then decide who screwed this up.
TaxProf Blog: Seto: The Financial Crisis: What Went Wrong?
Take a couple of minutes and read it. No spin, no blaming Jimmy Carter or any other nonsense, just an analysis.
Then decide who screwed this up.
TaxProf Blog: Seto: The Financial Crisis: What Went Wrong?
Bailout passes Senate
A revised version of the the $700 billion financial industry bailout passed in the Senate this evening, 74-25 and is apparently gaining ground in the House.
The Senate added $110 billion in tax breaks for businesses and the middle class, plus a provision to raise, from $100,000 to $250,000, the cap on federal deposit insurance, according to the AP.
The heart of the bill, and the opposition to it, remained the same. It would enable the government to spend billions of dollars to buy bad mortgage-related securities and other devalued assets held by troubled financial institutions. If successful, advocates say, that would allow frozen credit to begin flowing again and keep the economy from a deep recession.
Bailout passes Senate, House foes soften - Yahoo! News
The Senate added $110 billion in tax breaks for businesses and the middle class, plus a provision to raise, from $100,000 to $250,000, the cap on federal deposit insurance, according to the AP.
The heart of the bill, and the opposition to it, remained the same. It would enable the government to spend billions of dollars to buy bad mortgage-related securities and other devalued assets held by troubled financial institutions. If successful, advocates say, that would allow frozen credit to begin flowing again and keep the economy from a deep recession.
Bailout passes Senate, House foes soften - Yahoo! News
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