Posted by admin | Posted on 28-09-2012
Category : Business
Tags: bank, banking, financial, improve, libor, maturities, news, question, start, the guardian, uk news, ultimately, wheatley
Martin Wheatley’s proposals to improve Libor are welcome but there are other rates to use as references
Martin Wheatley has produced a pragmatic blueprint for how to improve Libor quickly. Criminal sanctions, he says, should apply to those who try to manipulate rates. The British Bankers Association, having failed abysmally to manage obvious conflicts of interest, has been sacked and outsiders will be invited to pitch to be the new administrator. Individual submitters at banks will have to be regulated by the Financial Services Authority. And the number of Libor contracts will be trimmed: instead of covering 10 currencies and 15 maturities, within a year it will be case of five currencies and four maturities.
All very sensible given that the simple option of abolishing Libor overnight was a non-starter. That’s because so many commercial contracts – about $300tn worth – reference Libor and the financial system couldn’t cope with the chaos. So, yes, a quick scrub and brush-up was the only way for Wheatley go. And launching his recommendations with a heavy sprinkling of outrage – manipulation “has torn the very fabric that our financial system is built on” – should get the new show off to a good start.
Ultimately, though, a bigger question remains: why has Libor, the rate at which banks will lend to each other on an unsecured basis, come to dominate so many contracts? There are plenty of other rates to use as references, such as central bank rates. It would be a good thing if they were given more room to develop.
Posted by admin | Posted on 15-09-2012
Category : Stocks, World News
Tags: bankruptcy, basically, comment, economy, fed, hulbert, inscrutable, life, Markets, real, show, support, telling, ultimately
It appears that many investors are commemorating the fourth anniversary of the bankruptcy of Lehman Brothers by telling themselves that any Lehman-like danger has passed, and staging a huge rally in its honor, says Mark Hulbert. Actually, he quips, the real impetus was that the Fed basically concluded that the economy is in such horrible shape that it needs even more life support. This all goes to show how inscrutable — and, therefore, ultimately unpredictable — the markets can be. 
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View original post here: It appears that many investors are commemorating the fourth anniversary of the bankruptcy of Lehman Brothers by telling themselves that any Lehman-like danger has passed, and staging a huge rally in its honor, says Mark Hulbert. Actually, he quips,…
Posted by admin | Posted on 29-04-2012
Category : Stocks, World News
Tags: comment, economic, huge, inflation, manipulated, massive, occur, post, price, printing, punches, required, speech, ultimately, wenzel
Bob Wenzel holds no punches in a speech this week to the NY Fed: “The noose is tightening on your organization, vast amounts of money printing are now required to keep your manipulated economy afloat. It will ultimately result in huge price inflation, or, if you stop printing, another massive economic crash will occur. There is no other way out.” Post your comment!
Follow this link: Bob Wenzel holds no punches in a speech this week to the NY Fed: "The noose is tightening on your organization, vast amounts of money printing are now required to keep your manipulated economy afloat. It will ultimately result in huge price…
Posted by admin | Posted on 25-04-2012
Category : World News
Tags: arsenals, cease, elimination, entered, force, npt, original, reality, return, solution, stockpiles, ultimately, viable, weapons
As a preparatory meeting for the 2015 Nuclear Nonproliferation Treaty (NPT) Review Conference opens in Vienna on April 30, regional tensions are building — in the Middle East with Iran’s nuclear development and in Northeast Asia with North Korea’s attempt to launch a long-range rocket.
More than 40 years after the NPT entered into force in 1970, the proliferation of nuclear weapons has yet to cease. In light of this reality, I believe that, ultimately, the only viable solution is to return to the original vision stated in the preamble of the NPT: “… the liquidation of all their existing stockpiles, and the elimination from national arsenals of nuclear weapons and the means of their delivery.”
View post: Toward 2015 — calling for a Nuclear Weapons Convention
Posted by admin | Posted on 07-04-2012
Category : Business, Stocks
Tags: bring, economic, embrace, euro, funding, government, mario, opinion, private, tidings, ultimately, yen
This guest column was written by Mario Kranjac. He is the founding partner of Kranjac Manuali & Viskovic LLP and specializes in mergers and acquisitions and corporate finance.
NEW YORK (Real Money) — While we are bombarded with images of turmoil in Greece there is an argument that the Greek government should avoid the austerity measures it has put in place in return for outside funding. But we should embrace, rather than fear, Greek austerity. A true default would ultimately bring with it very positive economic tidings.
Governments have no resources that they haven’t first taken from the private sector, and this means they can only spend insofar as they borrow from or tax the citizenry. Every dollar, euro or yen governments spend is something they’ve extracted from the private sector first.
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View original post here: Greek Austerity Has an Undeniable Upside
Posted by admin | Posted on 05-04-2012
Category : Stocks, World News
Tags: action, bank, dependent, discovery, policy, post, presses, price, push, reminder, suspect, ultimately, valuations, week, writes
Market action this week is a reminder of how dependent valuations are on central bank policy, writes Mohamed El-Erian. Repeated interventions have distorted price discovery, and even though the rewards are becoming less attractive, “when push comes to shove … we suspect that central banks may ultimately resort yet again to their printing presses.” Post your comment!
See original here: Market action this week is a reminder of how dependent valuations are on central bank policy, writes Mohamed El-Erian. Repeated interventions have distorted price discovery, and even though the rewards are becoming less attractive, "when push…
Posted by admin | Posted on 04-04-2012
Category : Stocks
Tags: attractive, banks, company, equities, gpn, multiple, opportunity, price, recover, regulation, smith, stock, ultimately
NEW YORK (TheStreet) — Investors should look past Global Payment’s security breach, which has hurt the company’s stock, according to a research report issued Tuesday by Sterne Agee analyst Greg Smith.
While Smith said he has cut the stock’s price target from $65 to $58, he anticipates it will snap back from a depressed trading range “as we continue to view the fundamental growth outlook and market opportunity for GPN as attractive.”
“We expect the stock’s multiple ultimately to recover as the company remediates and moves beyond the issue of the data breach,” the report noted. The analyst maintains a “buy” rating on Global Payment’s shares.
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Continue reading here: Buy Global Payments on Data-Breach Dip, Analyst Says
Posted by admin | Posted on 20-03-2012
Category : Stocks, World News
Tags: america, comment, comparison, financial, good, increased, lead, makes, pale, prevail, prevailing, results, shorted, shorts, ultimately
Teavana (TEA -0.5%) is the most heavily shorted stock in America for good reason, Frank Voisin writes, as its share price premium – trading at a P/E of 62 and price-to-book-value of 16.6 – makes its strong financial results pale in comparison: “The economics of the industry will prevail and increased competition will ultimately lead to the shorts prevailing.” Post your comment!
See more here: Teavana ([[TEA]] -0.5%) is the most heavily shorted stock in America for good reason, Frank Voisin writes, as its share price premium – trading at a P/E of 62 and price-to-book-value of 16.6 – makes its strong financial results pale in comparison:…
Posted by admin | Posted on 02-03-2012
Category : Stocks, World News
Tags: company, correcting, cost, demand, fundamentals, good, iran, issue, news, oil, post, profits, result, ultimately, vulnerable
Oil prices at 1.35x the marginal cost of production may be good news for oil company profits but Sanford Bernstein analysts think the rally that has sent U.S. prices up 8%-plus YTD may be vulnerable: “Marginal cost oil prices are unjustified relative to fundamentals.”
Posted by admin | Posted on 02-03-2012
Category : Stocks
Tags: banks, capital, fear, fund, industry, investment, investor, redemptions, regulations, rhetoric, tighter, ultimately, vehicles, warning
Fidelity ratchets up its rhetoric against money market fund reform, warning U.S. regulators that proposed changes such as requiring more capital and placing restrictions on investor redemptions would “ultimately destroy” the $2.7T industry. What they really fear is that tighter regulations could drive investors to other investment vehicles, particularly banks. 6 comments!
See the original post here: Fidelity ratchets up its rhetoric against money market fund reform, warning U.S. regulators that proposed changes such as requiring more capital and placing restrictions on investor redemptions would "ultimately destroy" the $2.7T…
