Get the latest news, data and insights on key trends affecting Wall Street & financial policy.
Get the latest news, data and insights on key trends affecting Wall Street & financial policy.
Today’s Washington Brief
Today’s Business Brief
Today’s Chart Review
Cash tax payments by America’s top firms
Mark Your Calendars (All Times Eastern)
Former Bush administration official Carlos Gutierrez says he will be voting for Hillary Clinton, calling Donald Trump’s economic policies a “disaster.” The former commerce secretary under President George W. Bush said he looked at the “totality” of the choice between the two candidates and decided on Clinton.
Poll: Trump Arrests Slide, But Favorability Reaches New Depths
Donald Trump is more unpopular than ever, according to a new Morning Consult poll, but he gained ground on Hillary Clinton for the first time since the Republican Party’s convention in Cleveland last month, trimming her lead to 7 points. In the new national survey taken Aug. 11 through Aug. 14, the GOP presidential nominee picked up 2 percentage points against Clinton but still trails her — 44 percent to 37 percent — in a head-to-head matchup.
Liberals rally to sink Obama trade deal
Liberals are amping up their opposition to the Trans-Pacific Partnership (TPP) on and off of Capitol Hill, amid escalating concerns that the package will get an 11th hour vote after the November elections. Republican leaders in both chambers have said it’s unlikely the mammoth Pacific Rim trade deal will reach the floor this year.
Richard Cordray, the quiz show star policing US banks
Richard Cordray, a regulator who Republicans love to hate, knows about being grilled in public: the cameras, the confident questioners, the audience anticipating a mistake. His first time in the limelight was on the game show Jeopardy! But that was nothing compared with the maulings he has received at the hands of his conservative overseers in Congress, who have called him a “dictator”.
U.S. Index Futures Are Little Changed With Equities Near Record
U.S. stock-index futures were little changed as investors assessed the rally that sent equities to records in recent sessions. S&P 500 contracts expiring in September added 0.1 percent to 2,183.25 at 11:03 a.m. in London, while Dow Jones Industrial Average futures added 31 points to 18,554.
Long-Term Liquidity Plan is Costly and Redundant, Banks Argue
Banks and industry representatives are asking whether the proposed long-term liquidity rule properly takes into account the risk profiles of certain assets, the interaction with other liquidity rules, and even whether the regulation is needed at all.
Financial Products and Investments
Nasdaq Tries to Appeal to Investors Lured by New Rival IEX
In the latest sign that American stock exchanges are inching away from a decadelong arms race toward ever greater speed, Nasdaq Inc.plans a new option for investors who complain they can’t keep up with rapid-fire trading. The move shows how exchange operators are angling to respond to IEX Group Inc., the startup that won regulatory approval in June to launch a market that slows the pace of trading.
Launch of ‘Flash Boys’ exchange IEX will test its philosophy
After all the regulatory hand-wringing, traded barbs, TV fights and the book, IEX will launch as a stock exchange beginning next Friday. It is a landmark moment for a trading start-up that has railed against the status quo of the world’s largest stock market.
Fidelity files with SEC for new type of actively managed ETF
Fidelity Investments has filed with the Securities and Exchange Commission for a new type of actively managed exchange-traded fund. The funds, which the Boston-based fund giant calls exchange-traded active funds (ETAFs), would be something of a cross between a traditional closed-end fund and an exchange-traded product.
Visium Trader-Turned-Whistle-Blower Tied to Hedge Fund’s Demise
A former trader at Visium Asset Management LP told an ex-colleague that one of his first stops after leaving the firm was the SEC. What he didn’t say was that he had turned on his former co-workers and was secretly recording their conversations for the FBI.
Tiny Satellites: The Latest Innovation Hedge Funds Are Using to Get a Leg Up
The latest technological innovation for data-hungry hedge funds is a fleet of five dozen shoebox-sized satellites. A company called Planet Labs Inc. has launched a small constellation of what it calls “cubesats” that can deliver much more frequent imagery of economically sensitive spots than traditional satellites.
Housing & GSEs
PwC sued for $5.5bn over mortgage underwriter TBW’s collapse
PwC is being sued for a record $5.5bn for failing to detect fraud that led to a bank collapse during the global financial crisis, in a case that could bring more auditing firms into the line of fire. Since the financial crisis, banks have paid out hundreds of billions of dollars in settlements while other services companies, such as credit rating agencies, have had to dig deep for payouts.
VP Nominee Pence Suggests He Will Release His Tax Returns
“When my forms are filed and my tax returns are released, it’s going to be a quick read,” Republican vice presidential nominee Mike Pence said in a Saturday interview with New York City radio station WABC.
Conservatives want to force House vote to impeach IRS chief
When Congress returns next month from its seven-week recess, conservative rebels in the House vow to force a vote on whether to impeach IRS Commissioner John Koskinen, effectively making an end-run around reluctant House leaders to achieve their goal. Republicans allege that Koskinen obstructed an investigation into whether the IRS improperly scrutinized conservative Tea Party groups seeking tax-exempt status, although they do not agree on whether the IRS chief should be impeached.
Banking Systems & Currencies
Bangladesh officials to meet Fed, U.S. investigators over heist: sources
A team from Bangladesh will meet officials of the Federal Reserve Bank of New York, the Federal Bureau of Investigation and the U.S. Department of Justice this week in New York in connection with the cyber theft of $81 million from the South Asian country’s central bank in February, sources said. Two people close to the Bangladesh central bank said the goal of the meetings starting on Tuesday would be to discuss what led to the heist, carried out by unidentified hackers, and how such events can be prevented in future.
In Bangladesh Cyberheist, Strange Requests, Odd Misspellings and Little Scrutiny by Fed
One order seeking money from Bangladesh’s account at the Federal Reserve Bank of New York wanted $20 million for vaguely defined consulting fees. A second sought $30 million for “ineligible expenses.”
How New U.S. Money-Market Rules Could Push Down China’s Yuan
China’s currency, the yuan, has declined in value this year, and now imminent changes to the way the U.S. regulates money-market funds are adding to the downward pressure. The link between these funds and the yuan-dollar rate comes from the effect these new money-market regulations are having on the London interbank offered rate, or Libor, which measures the cost of short-term interbank borrowing.
Opinions, Editorials & Perspectives
I Support You, Donald Trump. Now Release Your Tax Returns.
Among Donald J. Trump’s traits is his penchant for internalizing and personalizing things — insults, rejections and even policy disagreements. Trading slights seems essential to his personality, or at least something he feels is necessary for his presidential campaign.
In economic speech, Trump mostly wrong on regulations
Republican nominee Donald Trump gave a speech on Monday outlining his economic plans. While the speech was quickly overshadowed by Trump’s inflammatory remarks on Tuesday, it is worth dwelling on because it was one of the more substantive moments in the Trump campaign.
Introducing the new sheriff of Wall Street
Wall Street people, or their lobbyists and lawyers, are spending a lot of time parsing the Democratic party’s policies and presidential candidate Hillary Clinton’s speeches or musings about economic policy. Moneyed financial-sector Democrats are writing cheques and showing up at supposedly elite campaign events.
Financial Transaction Tax Would Hit Main Street, Not Just Wall Street
When progressives were defending the Department of Labor’s fiduciary rule governing retirement accounts, they consistently praised the regulation for encouraging investment in low-cost index funds. Yet at the same time, many of them are backing a tax that would impose heavy costs on middle-class savers who invest in these funds.
How to Tame the Wild West of Marketplace Lending
Claudia Viek, American Banker
Online alternative lenders offer a variety of advantages from their use of automation, big data and crowdfunding to reach small businesses. They offer quick loan decisions with a stripped-down application process.
Decentralization & Governance: Can Bitcoin Have the Best of Both?
Since the earliest days of bitcoin, decentralization has been key to its value proposition. But it’s also been its greatest obstacle.
Research Reports, Issue Briefs & Case Studies
Puerto Rico’s Evolving Household Debts
Debt and its performance play a critical role in economic development. The enormous increase in mortgage debt that took place during the run-up to the 2007 financial crisis and the contribution of that debt to the crisis underscore the importance of household debt to financial stability and economic growth.