Observations – Statistics – Commentary
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By Jeremy Grant
I’ve lost count of how often Gary Gensler has testified to various US congressional committees on over-the-counter derivativesreform and clearing. But it always pays to read what he has said, even if you can’t make it to the wood-panelled hearing rooms in Washington yourself.
http://bit.ly/pLZFh
*** Follow the FT’s Trading Room on Twitter at http://twitter.com/FTTradingRoom.
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Millennium’s Englander Examines Hedge Funds
Israel A. Englander is known for keeping a very low public profile, even for a billionaire hedge fund manager. But recently, the founder of Millennium Partners shared his views on the state of the hedge fund industry in a keynote address at the Absolute Return Symposium in New York.
http://bit.ly/3kWJPY
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VERNON & PARK CAPITAL INVESTS IN UNX LLC
UNX Appoints Thomas Kim as CEO and Secures Funding for Strategic Growth
Funding led by Goldman, Sachs & Co. and Vernon & Park Capital
LOS ANGELES, CA (November 17, 2009): UNX LLC, a leading provider of innovative trading technology solutions, has appointed Thomas Kim as Chief Executive Officer. It also has secured funding from Goldman, Sachs & Co. and Vernon & Park Capital along with some of its current investors. The new funding will support the enhancement of UNX’s broker-neutral electronic trading products and services, including its Catalyst® Portal and Execution Management System (EMS). It will also fuel continued development of the firm’s open technology platform, which allows for seamless integration between the buy side and sell side.
http://www.vernonpark.com/
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India to have ‘billion’ mobile users soon: exec
HONG KONG (AFP) – India could have more than one billion mobile phone users by 2015, with the bulk of that growth in rural areas, one of the country’s top telecom executives said Wednesday.
http://news.yahoo.com/s/afp/20091118/bs_afp/hongkongchinaindiatelecom_20091118062147
**** That brings new meaning to I-Phone.
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The Undoing of the Great American Economy
By Matt Koppenheffer
Even though there are probably fewer people stocking up on bottled water and ammo today than there were six months ago, it’s obvious that there are still grave problems with the U.S. economy.
http://bit.ly/1StzTC
*** I have been stockpiling powered water and jelly beans.
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WSJ CEO Council: CME Says Derivative-Cost Complaints Overdone
WASHINGTON -(Dow Jones)- Companies may complain about new costs linked to pending changes to the vast over-the-counter derivatives market, but the truth is they’re not enjoying a free system today, the chief executive of CME Group Inc. (CME) said Tuesday.
http://bit.ly/2lKF57
**** How much does the option integrated into the OTC transaction cost?
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Tankers store oil as futures prices rocket
By Robert Wright in London
One in 12 of the world’s largest crude oil tankers are being used to store oil rather than move it from place to place, according to research by a London shipbroker.
http://bit.ly/2TezDj
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Report: Few women in key posts
The Northern Trust is one of 12 “best performers” in terms of women represented as board members or executive officers in the latest census by the Chicago Network.
http://bit.ly/3rBWxB
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POST PARLANCE WITH: Daryl Collins
By Julia Quinn-Szcesuil/Correspondent
Although she is juggling a new book, a new position as a senior associate with Bankable Frontier Associates, her final doctoral dissertation, and a young family, Daryl Collins seems perfectly at ease when sitting down to discuss the complex financial acrobatics of the world’s poor.
http://bit.ly/5ddZH
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Gold hits record near $1,150/oz as dollar slips
LONDON (Reuters) – Gold hit a fresh record high near $1,150 an ounce on Wednesday, boosting precious metals across the board, as a dip in the dollar index added to momentum buying as prices broke through key technical resistance levels.
http://bit.ly/I51PA
**** Does gold really matter? How does it impact my life? My fillings are worth more? Is it all psychological? Is it a new currency? Is it an old currency, reborn? Is it just a carry play because of low interest rates, like Howard Lutnick said in New York last week? Isn’t a hedge against the dollar being short dollars, or long some other currency? Why the proxy?
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U.S. Mint to Resume Selling Some Gold Coins
http://bit.ly/3MXfx6
**** Below are some selected stories from today’s JLN Metals Edition, with comments from Editor Chris McMahon:
Gold – a “target price”
Economist.com
Buttonwood’s notebook
Is it a case of “great minds think alike” or “fools seldom differ”? Either way, Dylan Grice of Societe Generale has just written a note on how gold might be the subject of a bubble.
http://bit.ly/3IukZf
** Read to the end of this short piece for ‘the number’ people will be talking about tomorrow and for weeks to come.
John Paulson Making Big New Bet on Gold
WSJ.com
One of the biggest investors is placing a big new bet on gold. John Paulson, who scored about $20 billion of profits for his hedge fund between 2007 and early 2009 wagering against the housing market and financial companies, is launching a fund dedicated to buying up shares of gold miners and other bullion-related investments, according to three investors.
http://bit.ly/2Vx1c5
** Consider this the counterpoint to all the bubble stuff.
BHP Billiton Is Cautious on World Economic Outlook
Bloomberg.com
BHP Billiton Ltd., the world’s largest mining company, remains “cautious” on the global economy in the short- to medium-term, Chief Executive Office MariusKloppers said today.Restocking in developed economies has been “somewhat slow to start and has actually been quite lethargic to date,” the 47-year-old executive said in a speech to theLowy Institute in Sydney. Kloppers on Oct. 29 said there were signs of restocking in major economies as steel output outside of China rises.
http://bit.ly/oxXtD
The madness of the inflation hawks
Paul Krugman Blog – NYTimes.com
Wow. Matthew Yglesias catches David Ignatius worrying that the Fed may not have enough political support in its efforts to raise interest rates and fight inflation. As Matt correctly notes, this is a remote issue — unemployment is high, inflation is low, and the Fed has no business raising rates any time soon.
http://bit.ly/1f1nU5
** Krugman uses the Taylor rule. the Fed’s guide for relating interest rates to unemployment and inflation, to assert that Fed fund rates will not only stay low for a very long time but that its inflation target should be raised as well..
A Tale of Two American Economies
Project Syndicate
Commentary by Nouriel Roubini
While the United States recently reported 3.5% GDP growth in the third quarter, suggesting that the most severe recession since the Great Depression is over, the American economy is actually much weaker than official data suggest. But official measures of GDP may grossly overstate growth in the economy as they don’t capture the fact that business sentiment among small firms is abysmal and their output is still falling sharply. Third quarter GDP – properly corrected for these factors – may have been 2% rather than 3.5%.
http://bit.ly/1veXM5
** Nouriel Roubini is professor of economics at the Stern School of Business at New York University and chairman of Roubini Global Economics.
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MarketsWiki Recent Updates
People
Nouriel Roubini; Sree Sreenivasan; Thomas Kim; Mark Yallop; Louis B. Mendelsohn; Neil Barofsky; Alain Miquelon; Louis Klobuchar Jr.
Companies, Organizations and Groups
Kai Trade; Vernon & Park Capital, L.P.; UNX; Trading Technologies; Newedge; Korea Exchange Inc.; E*TRADE Securities LLC; Dubai Pearl Exchange
Products
The Big Money; FOW magazine; CBOE Russell 2000 BuyWrite Index; J-Trader
Miscellaneous
Execution Management System; Commission; Equal Credit Opportunity Act
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Lead Stories
US creates new financial fraud task force
WASHINGTON (AFP) – US authorities announced Tuesday the creation of a new interagency task force to crack down on financial fraud, saying its mission was to prevent “another meltdown.”
http://news.yahoo.com/s/afp/20091118/pl_afp/usfinancecrime_20091118001917
Interagency Panel to Fight Financial Crime
http://www.financetech.com/news/wallstreet/showArticle.jhtml;jsessionid=3N3C3UBNC23ELQE1GHRSKH4ATMY32JVN?articleID=221900077
European Regulators May Take Swift Action on ‘Dark Pools’
European Union securities regulators will complete their review of “dark pool” share trading venues by year end and may ask the bloc’s executive to take speedy action, a top supervisor said Tuesday.
http://dealbook.blogs.nytimes.com/2009/11/18/eu-regulators-may-take-swift-action-on-dark-pools/
House Dems sharpening “too big to fail” plan
By Kevin Drawbaugh
WASHINGTON (Reuters) – A key U.S. congressional panel moved toward toughening a plan for dealing with “too big to fail” financial firms on Tuesday, while rejecting a Republican alternative that is expected to reappear later.
http://news.yahoo.com/s/nm/20091118/pl_nm/us_financial_regulation_house_3
OTC reform proposals in Washington miss the mark
House and Senate bills provide too many government mandates and not enough flexibility and could lead to capital flight from the US, argues Judd Gregg -
http://www.ft.com/cms/s/0/792a04dc-d39a-11de-8caf-00144feabdc0.html
Goldman apologises for role in crisis
$500m pledged to help small businesses
Goldman Sachs apologised for its role in the financial crisis on Tuesday and pledged $500m over five years – or about 2.3 per cent of its estimated bonus and salary pool for 2009 – to help 10,000 US small businesses recover from the recession. The moves come as the bank tries to defuse a political and public backlash over its plans to share billions of dollars among top dealmakers after rebounding sharply from the turmoil and earning record profits in the first nine months of the year.
http://www.ft.com/cms/s/0/782afd66-d3bd-11de-8caf-00144feabdc0.html
$500 Million and Apology From Goldman
By GRAHAM BOWLEY
Criticized over bonuses, Goldman Sachs said it was working with the billionaire investor Warren E. Buffett in a $500 million project to help 10,000 small businesses.
http://www.nytimes.com/2009/11/18/business/18goldman.html?ref=business
Goldman, Buffett to Aid Small Business
http://online.wsj.com/article/SB10001424052748704538404574542243543724398.html?mod=WSJ_hps_LEFTWhatsNews
Goldman CEO offers mea culpa
I’m sorry — and here’s $500 million to make it better. That was the message yesterday from Goldman Sachs CEO Lloyd Blankfein, who apologized for his firm..
http://www.nypost.com/p/news/business/goldman_ceo_offers_mea_culpa_Qi7to9aBaaI920Enw3BDIO
Peterson blasts role of Fed in financial reform bill
House Agriculture Committee leaders blasted a regulatory reform bill, endorsed by the Obama Administration’s Treasury Department, that would give the Federal Reserve the final word in regulating commodities futures markets and the Farm Credit System. “Why are we even thinking about giving more power and authority to the Fed?” Chairman Collin Peterson asked at the opening of this morning’s hearing citing the Fed’s lack of experience as a regulator – more particularly of futures markets or the Farm Credit System.
http://www.feedstuffs.com/ME2/dirmod.asp?sid=F4D1A9DFCD974EAD8CD5205E15C1CB42&nm=Breaking+News&type=news&mod=News&mid=A3D60400B4204079A76C4B1B129CB433&tier=3&nid=2CF8FA3F3B09447B9CD2E5CE3A9CE7EB
House Ag leaders: Keep Fed out of CFTC’s work
* House Ag chairman opposes dual regulation
* CFTC’s Gensler sees possible regulatory duplication
* Farmer Mac likely to be excluded from risk bill (Updates with detail that Farmer Mac exempt from risk bill)
By Charles Abbott
WASHINGTON, Nov 17 (Reuters) – Leaders of the House Agriculture Committee said they oppose legislative proposals that could turn the Federal Reserve into a back-up regulator of U.S. futures exchanges.
http://www.reuters.com/article/BROKER/idUSN17362120091117
Another Round of Regulatory Reform
Throughout the fall, lawmakers in the House have been drafting and reworking legislation to reform the financial system. Senate Democrats weighed in last week with a plan that is stronger than the House bills on aspects of derivatives regulation and consumer protection. It also invites healthy debate on other issues, like the role of the Federal Reserve in a reformed system.
http://www.nytimes.com/2009/11/18/opinion/18wed1.html
Obama’s financial fraud task force has miles to go in restoring public confidence
http://www.dailyfinance.com/2009/11/18/obamas-financial-fraud-task-force-has-miles-to-go-in-restoring/
Frank wants tougher derivatives rules
WASHINGTON – The Commodity Futures Trading Commission and Securities and Exchange Commission need to “toughen up’’ their approach on new regulations for clearing derivatives trades, US Representative Barney Frank said yesterday.
http://www.boston.com/business/articles/2009/11/18/frank_wants_tougher_derivatives_rules/
Proposed amendment would grant government ability to break up firms
By Silla Brush
Rep. Ed Perlmutter (D-Colo.) late on Tuesday circulated a much-anticipated amendment to a financial bill that aims to give the government greater powers to regulate large financial firms.
http://thehill.com/blogs/blog-briefing-room/news/68277-proposed-amendment-would-grant-government-ability-to-break-up-firms
Risk exclusive: Clearing exemption for FX swaps to be scrapped, says Frank
http://www.risk.net/risk-magazine/news/1562399/risk-exclusive-clearing-exemption-fx-swaps-scrapped-frank
SEC Official Critiques Risk-Reduction Proposal
By SARAH N. LYNCH
WASHINGTON — A proposal to reduce market risks should be strengthened to ensure that smaller firms aren’t at a disadvantage and that the Federal Reserve’s powers don’t trump those of other regulators, a commissioner at the Securities and Exchange Commission told lawmakers Tuesday.
http://online.wsj.com/article/SB125848068006252429.html
FDIC Loan Guarantees Would Be Extended, Funded by Banks in Frank Proposal
The Federal Deposit Insurance Corp.’s temporary loan guarantee program would be extended under a proposal in Congress aimed at offering regulators tools to stabilize the economy in the event of a future financial crisis.
http://www.bloomberg.com/apps/news?pid=20601208&sid=a9fEfRSjMyus
HUD, SEC Partner in Mortgage, Securities Fraud Task Force
The Department of Justice (DOJ) is heading up a new, inter-agency task force to enforce investigation of financial fraud and financial crime.
http://www.housingwire.com/2009/11/17/hud-sec-partner-in-mortgage-securities-fraud-task-force/
14,700 declare foreign accounts under US tax amnesty
WASHINGTON (AFP) – More than 14,700 Americans with previously undisclosed offshore bank accounts have come forward to settle their back taxes after an amnesty offer, US officials said Tuesday.
http://news.yahoo.com/s/afp/20091117/bs_afp/ustaxbankingjusticeswitzerland_20091117202339
14,700 Disclosed Offshore Accounts
By LYNNLEY BROWNING
The I.R.S. announced the number as it released the criteria to get names of account holders in a UBS tax case.
http://www.nytimes.com/2009/11/18/business/global/18irs.html?ref=business
Insurance Companies, Pension Funds And The New EU Supervisory Architecture – Speech By Jean-Claude Trichet, President Of The European Central Bank At The CEIOPS Conference 2009, Frankfurt am Main, 18 November 2009
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=86850
Private-Equity Funding Drops 62% as Biggest U.S. Pension Plan Reviews Fees
The biggest U.S. pension plan doled out 62 percent less cash to buyout companies in the first seven months of the year and pressed for fee cuts as firms, including Apollo Management LP, struggled to revive dealmaking.
http://www.bloomberg.com/apps/news?pid=20601208&sid=a1Zm6rd4t2pc
Potential Dodd Senate Challenger Calls for Geithner Resignation Over AIG
Former Republican congressman Rob Simmons, seeking a U.S. Senate seat from Connecticut, called on Treasury Secretary Timothy Geithner to resign over his role in the bailout of insurer American International Group Inc.
http://www.bloomberg.com/apps/news?pid=20601070&sid=afyqnHpb3ZVg
Wall Street on Track for Record in Profits
By ZACHERY KOUWE
The New York State comptroller said the financial industry was recovering “much faster than anyone had envisioned.”
http://www.nytimes.com/2009/11/18/business/18wall.html?ref=business
Environmental Trading News
EEX is awarded the contract for auctioning of European emission allowances (EUA)
European Energy Exchange AG (EEX) will run the primary auction for European emission allowances (EUA) in Germany on behalf of the German Federal Ministry for the Environment. EEX AG was awarded the contract regarding the auction which is scheduled to be launched in January 2010 by the ministry.
http://www.eex.com/en/Press%20Room/Press%20Release/press/69582
U.S. Northeast Carbon Permits Drop to Third Low in Eight Days
By Simon Lomax
Nov. 17 (Bloomberg) — Carbon dioxide permits in a “cap- and-trade” program for power plants in the U.S. Northeast fell to their third low in eight trading days amid delays in legislation creating a national emissions market.
http://www.bloomberg.com/apps/news?pid=20601130&sid=aP1Oku3IGtVs
World Bank Begins Sales of Certified Emission Reduction Credits for Adaptation Fund through BlueNext
The FINANCIAL — The World Bank (International Bank for Reconstruction and Development), as trustee for the Adaptation Fund, has begun regular sales of certified emission reductions (CERs) through the BlueNext Exchange.
http://finchannel.com/news_flash/Banks/52135_World_Bank_Begins_Sales_of_Certified_Emission_Reduction_Credits_for_Adaptation_Fund_through_BlueNext/
What They Really Believe
By THOMAS L. FRIEDMAN
If you follow the debate around the energy/climate bills working through Congress you will notice that the drill-baby-drill opponents of this legislation are now making two claims. One is that the globe has been cooling lately, not warming, and the other is that America simply can’t afford any kind of cap-and-trade/carbon tax.
http://www.nytimes.com/2009/11/18/opinion/18friedman.html?em
Oregon Boasts Of First ‘Carbon Quant’
BY ETHAN LINDSEY
In China Tuesday, President Barack Obama said an upcoming climate change summit should establish a draft pact on greenhouse gases. Many hope the Copenhagen summit will set up a global carbon trading market, along the lines now being set up in California. In Oregon, some entrepreneurs see a public good – and private gain – in these markets.
http://news.opb.org/article/6237-oregon-boasts-first-carbon-quant/
Brian Fallow: Rough guide to emissions trading scheme
Amid the welter of claims and counter-claims from partisan politicians, industry lobby groups and environmental organisations, people could be forgiven for being thoroughly confused by now about how emissions trading is supposed to work.
http://www.nzherald.co.nz/opinion/news/article.cfm?c_id=466&objectid=10610152
Dutch Cabinet Approves Driving Tax — Will the U.S. Do the Same?
In an effort to reduce automobile usage and greenhouse gas emissions, the Dutch cabinet has approved a driving tax that would charge motorists seven cents a mile.
http://www.enn.com/lifestyle/article/40724
For more environmental trading news, subscribe to the Environmental Markets version of the John Lothian Newsletter edited by Jim Kharouf.
Visit http://www.jlnenvironmental.com to subscribe.
Exchange & ECN News
Successful Launch of new Eurex Release 12
The international derivatives exchange Eurex successfully launched its new system Release 12 on Monday. Among the most important changes coming with the release are two links to other international exchanges, further significant improvements in clearing, new functionalities for trading, and partly new programmed software components to further reduce latency.
http://bit.ly/2YbtDB
London Stock Exchange To Launch New Retail Bond Market For The UK
The London Stock Exchange today announces that it will introduce a new order-driven trading service for bonds. This new electronic order book will be available for a select number of gilts and UK corporate bonds and will offer private investors with an on-screen secondary market in London-listed debt securities for the first time. This new service is expected to go live in February next year.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=86853
LSE to launch electronic order book for bond trading
http://www.thetradenews.com/trading-execution/3899
NASDAQ OMX Baltic Creates A Single Marketplace – A New Trading Venue For Shares Listed On Three Existing Exchanges
NASDAQ OMX Baltic, part of the NASDAQ OMX Group, Inc. (NASDAQ:NDAQ), today announced its intention to create a new single marketplace to trade shares listed on the regulated markets NASDAQ OMX Tallinn, NASDAQ OMX Riga and NASDAQ OMX Vilnius. The Euro will be the trading and settlement currency for the marketplace scheduled to launch in the first half of 2010, subject to member readiness and necessary approval from local authorities.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=86836
NASDAQ OMX Acquires Shares In Baltic Exchanges – Move To Improve Ability To Develop More Liquid Baltic Capital Markets
NASDAQ OMX Nordic, part of The NASDAQ OMX Group, Inc. (NASDAQ:NDAQ), has agreed with Swedbank and SEB to acquire their minority stakes in the NASDAQ OMX Tallinn exchange. At the same time, other local minority shareholders have also sold their stakes in NASDAQ OMX Tallinn to NASDAQ OMX, bringing NASDAQ OMX’s ownership in NASDAQ OMX Tallinn to 93 percent. In connection with this deal, SEB has also sold its 1.2 percent stake in NASDAQ OMX Vilnius to NASDAQ OMX. NASDAQ OMX’s goal is to reach 100 percent ownership in all NASDAQ OMX’s Baltic entities in the near future. Terms of the transaction were not disclosed.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=86838
Nasdaq OMX plans pan-Baltic trading venue
http://www.thetradenews.com/trading-venues/exchanges/3898
Deutsche Börse set to change face of exchange rivalry
http://www.efinancialnews.com/homepage/content/1055786199
Investor, PA Resources and Sagax Win Best Financial Reporting Award for 2008
Stockholm, November 18, 2009 – NASDAQ OMX Stockholm has announced the winners in its “Best Financial Reporting 2008″ competition. Investor AB has been named the winner in the Large Cap category. PA Resources AB won the award for the Mid Cap category and Sagax AB was named the winner in the Small Cap category.
http://ir.nasdaqomx.com/releasedetail.cfm?ReleaseID=425000
NASDAQ OMX to Provide Customers With Independent Latency Measurement Service by Correlix
NEW YORK, Nov 18, 2009 (GlobeNewswire via COMTEX News Network) — The NASDAQ OMX Group (Nasdaq:NDAQ) announced today that it has selected Correlix Inc. to provide real-time latency insight to its customers. The service will allow NASDAQ OMX customers access to independent real-time latency measurement information for intraday and post-day analytics.
http://ir.nasdaqomx.com/releasedetail.cfm?ReleaseID=425049
Nasdaq to Provide Customers Latency Measurement from Correlix
http://www.financetech.com/news/wallstreet/showArticle.jhtml;jsessionid=3N3C3UBNC23ELQE1GHRSKH4ATMY32JVN?articleID=221900090
Norwegian OTC derivatives platform goes live
http://www.thetradenews.com/trading-venues/exchanges/3900
Trading on Eurex derivates exchange halted
http://www.marketwatch.com/story/trading-on-eurex-derivates-exchange-halted-2009-11-18
Eurex Derivatives Trading Resumes After ‘Technical Problems’
http://www.bloomberg.com/apps/news?pid=20601084&sid=aNwVnb0iGlhE
OneChicago To List 1 New Single Stock Future
http://www.onechicago.com/wp-content/uploads/content2009/november19-new-products.pdf
Rod Drury Takes His Place On The NZX Board
Xero CEO and successful technology entrepreneur Rod Drury is to become a Director of NZX, effective today.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=86834
Holiday Reminder
Closed for Thanksgiving
http://www.directedge.com/AboutDirectEdge/Announcements/ViewNewsletterDetail.aspx?NewsletterID=121
[TMX] Top 20 Largest Consolidated Short Position Report – November 15, 2009
http://www.tmx.com/en/news_events/news_releases/11-18-2009_TSX-ShortReportNov15-09.html
[CBOE] Maximum Bid-Ask Differentials
http://www.cboe.org/publish/RegCir/RG09-130.pdf
Banks, Brokers & Dark Pools
Icap forecasts boom in OTC trading
By Alistair Gray and Jeremy Grant in London
Trading in some of the over-the-counter derivatives widely blamed for aggravating the financial crisis is likely to surge if legislators press ahead as expected with proposed reforms, according to Icap, the world’s largest interdealer broker.
http://www.ft.com/cms/s/0/a23f80b0-d3e3-11de-8caf-00144feabdc0.html
Charity Case: Goldman Sachs, Warren Buffett launch small-biz program
Just over 100 years ago, the sociologist Max Weber wrote his seminal book, The Protestant Ethic and the Spirit of Capitalism, in which he portrayed the pursuit of profit as virtuous and described work as a kind of religious duty. The attainment of wealth was seen as the fruit of labor, a blessing from God in return for hard work, piety and frugality.
http://www.dailyfinance.com/2009/11/18/charity-case-goldman-sachs-warren-buffet-launch-small-biz-prog/
Goldman Sachs Launches 10,000 Small Businesses Initiative
November 17, 2009 – The Goldman Sachs Group, Inc. (NYSE: GS) today announced the launch of 10,000 Small Businesses — a $500 million initiative that will unlock the growth and job-creation potential of 10,000 small businesses across the United States through greater access to business education, mentors and networks, and financial capital. It is based on the broadly held view of leading experts that a combination of education, capital and support services best addresses the barriers to growth for small businesses.
http://www2.goldmansachs.com/our-firm/press/press-releases/current/10-k-business.html
BGC Partners Wins Best Inter-dealer Broker at Waters Magazine’s Inaugural European Financial IT Awards
London, 18 November, 2009, BGC Partners, Inc. (Nasdaq: BGCP), one of the world’s leading inter-dealer brokers, announced today that it has won the Waters Magazine award for Best Interdealer Broker in the magazine’s inaugural European Financial IT Awards.
http://www.bgcpartners.com/news-centre/press-releases/press-releases-02/70368767.html
Hindsight On AIG Is 20/20
Brian Wingfield
WASHINGTON — This week, Neil Barofsky, the official watchdog for the Treasury Department’s Troubled Asset Relief Program, issued his latest analysis on bailout accountability.
http://www.forbes.com/2009/11/17/aig-tarp-counterparties-business-washington-bailout.html?feed=rss_news
Citi boosts base salaries of some senior employees
NEW YORK (Reuters) – Citigroup Inc (C.N) said on Tuesday it boosted the base salaries for its chief financial officer and a global markets co-head, but still plans to pay Chief Executive Vikram Pandit $1 for the year.
http://news.yahoo.com/s/nm/20091117/bs_nm/us_citigroup_pay
John Thain Defends Wall Street Bonuses
Former Merrill Lynch CEO John Thain pointed out at the Reuters Global Finance Summit in New York this week that senior staff receiving a large part of their compensation in deferred equity didn’t prevent the failure of either Bear Stearns or Lehman Brothers.
http://news.hereisthecity.com/news/business_news/9581.cntns
JPMorgan Hires Koll as Japan Equity Research Head (Update1)
By Jason Clenfield
Nov. 18 (Bloomberg) — JPMorgan and Chase & Co. hired Jesper Koll, a former chief economist at Merrill Lynch & Co. and hedge fund manager, to head the company’s Japan equity research team.
http://www.bloomberg.com/apps/news?pid=20601101&sid=akfUFibAxeto
JPMorgan set to seal Cazenove deal: sources
http://www.reuters.com/article/innovationNews/idUSTRE5AH44N20091118
Help (still) wanted: Bank of America CEO
The search for a successor to Ken Lewis continues, stymied by a limited pool of candidates and the heavy hand of the U.S. government.
NEW YORK (CNNMoney.com) — Of all the headaches Bank of America faces these days, none is more painful than its ongoing quest to find a new CEO.
http://money.cnn.com/2009/11/17/news/companies/bofa_ceo/index.htm?section=money_latest
It’s BofA-foonery!
It seems Ken Lewis isn’t the only Bank of America executive whose career has gotten tripped up by congressional testimony. Brian Moynihan, a onetime leading candidate to replace Lewis as CEO, yesterday thwarted his chance to look chief…
http://www.nypost.com/p/news/business/it_bofa_foonery_q16PqLIWmWQdKf0s2xOiWI
New rules could see bonus contracts torn up
By Holly Williams, Press Association
Bankers will see excessive pay and bonuses contracts torn up if they promote undue risk-taking under tough new rules outlined today in the proposed Financial Services Bill. The Financial Services Authority (FSA) will be handed new powers to void banker contracts and fine those that continue to offer unjustifiable sums.
http://www.independent.co.uk/news/uk/politics/new-rules-could-see-bonus-contracts-torn-up-1822791.html
Wells Fargo to Repay $1.3 Billion to Clients Hit by Auction-Rate Collapse
Wells Fargo & Co., the fourth- biggest U.S. bank by assets, agreed to repay about $1.3 billion to brokerage clients whose funds were frozen when the auction- rate securities market collapsed last year, the North American Securities Administrators Association said today.
http://www.bloomberg.com/apps/news?pid=20601208&sid=adyB2Fb3LMso
State Securities Regulators Announce $1.3 Billion ARS Settlement with Wells Fargo
The North American Securities Administrators Association (NASAA) today announced a settlement between Wells Fargo Investments LLC and state securities regulators under which Wells Fargo will return approximately $1.3 billion to clients who have had their funds frozen in the auction rate securities (ARS) market.
http://www.securitiesindustry.com/news/-24273-1.html
Swiss Bankers Seek Advice From Justice Ministry on Risk of Arrest Abroad
Swiss bankers have asked the country’s justice ministry to assess how likely they are to be arrested in tax-evasion cases when traveling abroad, a senior government official said.
http://www.bloomberg.com/apps/news?pid=20601208&sid=a_KwAmN2cohI
Icap margins dip on retaining ‘rainmakers’
The need to retain highly-paid bonds and derivatives brokers during the market turmoil of the past couple of years has depressed earnings at Icap, the inter-dealer broker, its chief executive, Michael Spencer, said today.
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6920148.ece
ICAP Interim Results for the Half Year to 30 September 2009
http://www.icap.com/news-events/in-the-news/news/2009/interim-results-for-the-half-year-to-30-september-2009.aspx
Lehman Bros. Creditors File $824 Billion in Claims, May Reach $1 Trillion
Lehman Brothers Holdings Inc.’s creditors filed $824 billion in bankruptcy claims against the collapsed investment bank, and the total may reach $1 trillion, Chief Executive Officer Bryan Marsal said.
http://www.bloomberg.com/apps/news?pid=20601127&sid=a4d8yuagFh90
Regulatory News
The SEC News Digest
The SEC News Digest provides daily information on recent Commission actions, including enforcement proceedings, rule filings, policy statements, and upcoming Commission meetings.
http://www.sec.gov/news/digest/2009/dig111809.htm
SEC Charges Former Executives at Silicon Valley Company for Inflating Financial Results
Washington, D.C., Nov. 17, 2009 — The Securities and Exchange Commission today charged two former Silicon Valley executives for improperly inflating the reported financial results at Santa Clara, Calif., semiconductor company Tvia, Inc.
http://www.sec.gov/news/press/2009/2009-250.htm
FINRA Fines MetLife Securities and Affiliates $1.2 Million for Email Supervision Failures
WASHINGTON – (Business Wire) The Financial Industry Regulatory Authority (FINRA) announced today that it has fined MetLife Securities, Inc., and three of its affiliates a total of $1.2 million for failing to establish an adequate supervisory system for the review of brokers’ email correspondence with the public. The fine also resolves charges of failing to establish adequate supervisory procedures relating to broker participation in outside business activities and private securities transactions.
http://www.earthtimes.org/articles/show/finra-fines-metlife-securities-and,1052821.shtml
FINRA Wins Okay for Major Expansion of BrokerCheck, Will Permanently Disclose Disciplinary Actions Against Former Brokers
http://www.businesswire.com/news/home/20091117006374/en
COMPLIANCE WATCH: Disciplining Of Brokers To Stay On Record
By Kristen McNamara and Shelly Banjo
NEW YORK (Dow Jones)–Brokers’ disciplinary records will remain available to investors even after brokers leave the securities industry, under a newly approved rule amendment.
http://online.wsj.com/article/BT-CO-20091117-714988.html
FINRA to permanently disclose disciplinary actions against former brokers
http://www.investmentexecutive.com/client/en/News/DetailNews.asp?id=51454&IdSection=8&cat=8&BImageCI=1
Florida lawyer suspected in $1 billion Ponzi scheme requests his own disbarment
MIAMI (AP) — A South Florida lawyer suspected of operating a $1 billion Ponzi scheme is asking for his own disbarment. A Florida Bar committee has approved the disbarment request submitted by attorney Scott Rothstein. A spokeswoman said Wednesday the final decision must be made by the state Supreme Court.
http://www.chicagotribune.com/business/sns-ap-us-lawyer-millions-missing,0,7582056.story
FSA red faced as LSE fines Regal
The Financial Services Authority faces criticism after Regal Petroleum was fined £600,000 by the London Stock Exchange for “systematic” breaches of rules – just months after the watchdog closed its own investigation without conclusion.
http://www.telegraph.co.uk/finance/newsbysector/energy/6592431/FSA-red-faced-as-LSE-fines-Regal.html
Gensler: Clearinghouse Access To Fed Loans Should Be Limited
By Sarah N. Lynch
WASHINGTON -(Dow Jones)- Clearinghouses are systemically significant to the marketplace, but they should not be permitted to regularly access the Federal Reserve’s discount borrowing window the way banks do, the head of the Commodity Futures Trading Commission said Tuesday.
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=200911171235dowjonesdjonline000373&title=genslerclearinghouse-access-to-fed-loans-should-be-limited
Gensler testifies on OTC reform
http://www.futuresmag.com/News/2009/11/Pages/Gensler-testifies-on-OTC-reform.aspx
Testimony of Chairman Gary Gensler Before the Senate Committee on Agriculture, November 18, 2009
http://www.cftc.gov/ucm/groups/public/@newsroom/documents/speechandtestimony/opagensler-19.pdf
Shankar Tells Galleon Judge Two People Gave Him Tips for Insider Trades
Gautham Shankar, a former trader at New York-based Schottenfeld Group LLC who pleaded guilty to insider trading in the Galleon Group case, told a judge he got secret tips from two people, according to a court transcript.
http://www.bloomberg.com/apps/news?pid=20601014&sid=a.mY.FeyUB14
GE, Dexia Units Said to Be Unnamed Firms in Rubin Muni Bid-Rig Indictment
A unit of General Electric Co. and a former subsidiary of Belgian bank Dexia SA were the two unnamed companies that allegedly conspired with a financial adviser charged by the U.S. with rigging auctions on municipal investment transactions, people familiar with the matter said.
http://www.bloomberg.com/apps/news?pid=20601127&sid=ams6hOzwrahE
Lloyd’s Says It Doesn’t Have to Pay for Stanford’s Defense in Fraud Case
Lloyd’s of London said admissions made by accused Ponzi scheme operator R. Allen Stanford’s former chief financial officer when he pleaded guilty relieves the insurance syndicate of the obligation to pay defense costs for Stanford and his codefendants.
http://www.bloomberg.com/apps/news?pid=20601127&sid=azLdilwRggFU
ASIC proceedings against Rich and Silbermann dismissed
The New South Wales Supreme Court today dismissed ASIC’s civil proceedings against One.Tel’s former joint Managing Director, Mr Jodee Rich and the company’s Finance Director, Mr Mark Silbermann.
http://www.asic.gov.au/ASIC/asic.nsf/byHeadline/09-229MR%20ASIC%20proceedings%20against%20Rich%20and%20Silbermann%20dismissed?opendocument
CESR Publishes 2009 Half-Yearly Report
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=86843
Investments – Indexes – Managed Futures – Managed Funds
Hedge-Fund Assets Rose a Sixth Month in October, EurekaHedge Report Shows
Hedge-fund assets increased by $7.8 billion in October, a sixth straight monthly gain, led by European managers as the region emerges from recession, Eurekahedge Pte said.
http://www.bloomberg.com/apps/news?pid=20601014&sid=a6ju1onJXN9g
Boom time for bond traders
Leading dealers reap record profits
http://www.ft.com/cms/s/0/f829b344-d422-11de-990c-00144feabdc0.html
Cantillon enjoys profits in industry’s worst ever year
Hedge fund manager Cantillon Capital Management bucked the trend in its industry, by growing profits – if only slightly – last year, despite its investments falling by 10% in the firm’s first losing year.
http://www.efinancialnews.com/homepage/content/1055785322
Soros hedge fund takes stake in Ford Motor
SAN FRANCISCO – Soros Fund Management LLC, the hedge fund run by billionaire investor George Soros, increased its holdings in U.S. stocks to $6.2 billion from $4.2 billion and bought a stake in Ford Motor Co.
http://news.yahoo.com/s/ap/20091118/ap_on_bi_ge/us_soros_fund_investments_1
Paulson & Co. Bets Bank of America Stock Will Almost Double by End of 2011
Paulson & Co., the hedge fund firm run by billionaire John Paulson, told investors Bank of America Corp.’s stock will almost double in the next two years as writedowns ease.
http://www.bloomberg.com/apps/news?pid=20601208&sid=axCZ7fWWxm4k
John Paulson Making Big New Bet on Gold
By GREGORY ZUCKERMAN
One of the biggest investors is placing a big new bet on gold.
John Paulson, who scored about $20 billion of profits for his hedge fund between 2007 and early 2009 wagering against the housing market and financial companies, is launching a fund dedicated to buying up shares of gold miners and other bullion-related investments, according to three investors.
http://online.wsj.com/article/SB10001424052748704533904574543713428787876.html?mod=WSJ_hps_LEFTWhatsNews
Calastone Connects GLG As First Hedge Fund For Mutual Fund Transactions
GLG Partners, one of the largest European Alternative Asset Managers has signed up to Calastone to enable clients to transact its mutual fund products over Calastone, the only independent cross-border transaction network for the mutual funds industry.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=86840
Lazard Chief Jacobs Was Constant Amid 21 Years of Changes at the Company
In his 21 years at Lazard Ltd., Kenneth Jacobs witnessed three chief executive officers, the 161-year-old firm’s initial public offering and a power struggle lost by the founding family. Now that he’s being rewarded with the top job, Lazard may be in for a period of calm.
http://www.bloomberg.com/apps/news?pid=20601208&sid=ae5hGIBxknPQ
New Leader at Lazard Is an Insider
By MICHAEL J. de la MERCED
The appointment of Kenneth M. Jacobs ends weeks of speculation over the successor to Bruce Wasserstein, who died in October.
http://www.nytimes.com/2009/11/18/business/18lazard.html?ref=business
Jacobs gets helm at Lazard
Lazard tapped Kenneth Jacobs as its new CEO to replace Bruce Wasserstein, who died unexpectedly in the middle of October. As first reported by The Post,.
http://www.nypost.com/p/news/business/jacobs_gets_helm_at_lazard_urkL4vp45du6QcXavn4TUO
Barclays Bank PLC Lists Five New Long and Short Exchange Traded Notes (ETNs) Linked to S&P Indices on NYSE Arca
NEW YORK , November 18, 2009 –- NYSE Euronext (NYX) announced that its wholly-owned subsidiary, NYSE Arca, today began trading five new ETNs linked to the performance of the S&P 500 Total Return IndexSM. The ETNs are issued by Barclays Bank PLC.
http://www.nyse.com/press/1258542947436.html
Apollo sets sights on NYSE listing
Move aims to take advantage of market rally
http://www.ft.com/cms/s/0/6c44fe60-d3c8-11de-8caf-00144feabdc0.html
United States 12 Month Natural Gas Fund, LP Lists Units on NYSE Arca
http://www.nyse.com/press/1258542948041.html
Unscheduled Adjustment in SDAX
Deutsche Börse: Deutsche Börse has announced an unscheduled adjustment in SDAX. The freefloat of OVB Holding has dropped below ten percent and does therefore no longer meet the criteria of the index. Villeroy & Boch will replace the share of OVB Holding in SDAX.
http://bit.ly/15VzM6
Hedge fund’s legal adviser dies in Moscow detention centre
A hedge fund’s four-year fight against an alleged Russian tax scam has taken a tragic twist with the death in prison of one of its legal advisers.
http://www.guardian.co.uk/business/2009/nov/17/hedge-funds-russia
Technology News
Financial Firm CIOs Strongly Favor IBM, Aite Survey Finds
http://www.financetech.com/news/wallstreet/showArticle.jhtml;jsessionid=3N3C3UBNC23ELQE1GHRSKH4ATMY32JVN?articleID=221900075
*** The saying goes, “No CIO ever lost his job chosing IBM.”
Ballista Securities Selects Greenline’s FIX Testing and Monitoring Solutions
CHICAGO, Nov. 18 /PRNewswire/ — Greenline Financial Technologies, Inc., a leading provider of electronic trading marketplace solutions, today announced that Ballista Securities, operator of the Ballista Alternative Trading System (ATS) for block-sized volatility and directional options orders, has implemented VeriFIX® and MagniFIX® for FIX testing and monitoring solutions.
http://finance.yahoo.com/news/Ballista-Securities-Selects-prnews-1624335890.html?x=0&.v=1
SunGard Enhances Monis XL Solution for Convertible Securities and Derivatives
SunGard has released a new version of Monis XL, its solution for pricing, analyzing and hedging convertible bonds and other equity-linked securities. Monis XL version 10.0 provides firms with enhanced front-end user functionality, analytics, extensions and asset class coverage.
http://www.sungard.com/pressreleases/2009/monis111709.aspx
First Automated Processing Service Available For UK funds
Euroclear UK & Ireland and EMXCo are eradicating the time-consuming, inefficient and unnecessarily expensive process of settling UK fund transactions. According to the HM Treasury, the UK funds industry could save GBP 70- 290 million per year by embracing processing automation in place of paper-based fund unit settlement.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=86855
UNX Appoints Thomas Kim As CEO And Secures Funding For Strategic Growth – Funding Led By Goldman, Sachs & Co. And Vernon & Park Capital
UNX LLC, a leading provider of innovative trading technology solutions, has appointed Thomas Kim as Chief Executive Officer. It also has secured funding from Goldman, Sachs & Co. and Vernon & Park Capital along with some of its current investors.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=86852
Media News
‘Dozens’ of layoffs at Associated Press: Guild
WASHINGTON (AFP) – The US news agency the Associated Press (AP) laid off dozens of employees on Tuesday as part of a plan to reduce its global payroll by 10 percent this year, a union statement said.
http://news.yahoo.com/s/afp/20091117/ts_afp/uscompanymediaindustrynewspaperscutsap_20091117235355
Rupert Murdoch On the Fate of Newspapers
In an interview with FOX Business Network’s Alexis Glick, News Corporation (NWS) CEO Rupert Murdoch says that the fate of newspapers depends on Kindle-like technology, that he doesn’t regret staying out of the NBC deal, that President Obama is “caught in a trap” with recovery tactics and that “we have to do something” about free news content on the site.
http://wallstreetpit.com/12212-rupert-murdoch-on-the-fate-of-newspapers
Deputy at Time Magazine to Be BusinessWeek Editor
By STEPHANIE CLIFFORD
Josh Tyrangiel, 37, said the goal for the magazine was to beat competitors “by being better, faster, smarter, more comprehensive.”
http://www.nytimes.com/2009/11/18/business/media/18mag.html?ref=business
Social media like Twitter change customer service
By Jon Swartz, USA TODAY
More than half of the Fortune 100 companies are using Twitter for customer service, recruiting employees, blasting news and announcing promotions, according to the study by public relations firm Burson-Marsteller and its digital-media unit, Proof. Yet a recent Deloitte survey concludes that organizations continue to struggle to harness social media’s full potential.
http://www.usatoday.com/tech/news/2009-11-18-twitterserve18_ST_N.htm?csp=34
Reports
Briefing.com Economic Calendar
http://www.briefing.com/Investor/Public/MarketAnalysis/Calendars/EconomicCalendar.htm
USDA Today
http://www.nass.usda.gov/Publications/index.asp
CBOE Events Calendar
http://www.cboe.com/AboutCBOE/EventCalendar.aspx
Economic Release Calendar
The Economic Release Calendar (PDF) is a schedule of government, academic and industry economic releases, provided as a service to CME customers.
http://www.cmegroup.com/tools-information/calendars/
Asia-Pacific News
Chi-East To Appoint LCH.Clearnet As Central Clearing Facility
Chi-East, a joint venture of Chi-X Global Inc. and Singapore Exchange Limited (SGX), and LCH.Clearnet Limited (LCH.Clearnet) announced today that Chi-East will appoint LCH.Clearnet as the central clearing facility for its pan-Asian, non-displayed trading platform, scheduled to launch in mid-2010.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=86849
SGX, Chi-Global Asia dark pool picks LCH.Clearnet
By Jeremy Grant in London
Chi-East, the pan-Asian dark pool planned by SGX and Chi-X Global, on Wednesday picked LCH.Clearnet, the European clearing house, as clearer for the joint venture.
http://www.ft.com/cms/s/0/2857b23a-d42f-11de-990c-00144feabdc0.html
Chi-East to Appoint LCH.Clearnet as Central Clearing Facility
http://www.businesswire.com/news/home/20091117006542/en
LCH.Clearnet to clear for SGX-Chi-X dark pool
http://www.thetradenews.com/trading-venues/dark-pools/3897
KDB’s Min Rues ‘Very Good Opportunity’ Missed in Lehman Failure
By Bomi Lim
Nov. 18 (Bloomberg) — KDB Financial Group Inc. Chairman Min Euoo Sung said his failed attempt to buy Lehman Brothers Holdings Inc. last year was a missed opportunity for the Korean bank and the global financial system.
http://www.bloomberg.com/apps/news?pid=20601109&sid=aFzBQC1KK5G8
MUFG results upbeat, scales back Morgan plan
TOKYO (Reuters) – Mitsubishi UFJ Financial Group (8306.T) became the third major Japanese bank to post upbeat results, underscoring the improving outlook for the sector, and said it would raise $11 billion to meet stricter capital rules.
http://news.yahoo.com/s/nm/20091118/bs_nm/us_mufg
Shanghai unveils new trading platform schedule
The Shanghai Stock Exchange has set a date for the launch of its new trading system, which has been developed following rapid growth of trading volumes in recent years.
http://www.thetradenews.com/trading-venues/exchanges/3901
Thai bourse honors Dr. Art-Ong Jumsai Na Ayudhya for education development
The Stock Exchange of Thailand (SET) Foundation has honored Dr. Art-Ong Jumsai Na Ayudhya, Chief Administrator of Sathya Sai School, Lopburi, for his outstanding work in education development as well as his sacrifice, morality and ethics, which is a good role model for society.
http://www.thaipr.net/nc/readnews.aspx?newsid=3C08E81EFC90F9914F5C358E36E92F14
HKEx: Exchange Participants Statistics – Stock Exchange Participants’ Market Share Report
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=86842
Frontier Markets
Cotton, jute exchanges try to persuade members to activate dormant platform
Two specialised regional commodity exchanges — the Mumbai-based Cotton Association of India (CIA) and the Kolkata-based East India Jute & Hessian Exchange (EIJHEX) — have engaged members in several rounds of talks to activate contracts on their respective platforms.
http://www.business-standard.com/india/news/cotton-jute-exchanges-try-to-persuade-members-to-activate-dormant-platform/376739/
India-focused hedge funds lose steam
Hedge fund investments in India lagged global hedge fund benchmarks last month, with the EurekaHedge India index recording negative returns after consecutive months of gains.
http://www.thehindubusinessline.com/2009/11/19/stories/2009111952031200.htm
Saudi Arabia Regulator Fines Traders for Breaching Regulations
By Glen Carey
Nov. 18 (Bloomberg) — Saudi Arabia’s market regulator fined two traders and barred them from selling or buying shares on the exchange for one year as the market watchdog cracks down on violations.
http://www.bloomberg.com/apps/news?pid=20601104&sid=ass0q5Qmgkyg
Bahrain Financial Exchange Holds First Product Development Working Group Meeting
The Bahrain Financial Exchange (BFX), the first multi-asset exchange in the Middle East and North Africa, launching in Q1, 2010, held its first Product Development Working Group (PDWG) meeting for Islamic and Conventional asset classes.
http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=86845
Nigeria: Why Recovery of Stock Market May Take Years
Stan Okenwa
Lagos — As the war of attrition between the Governor of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi and shareholders of the troubled banks continue, emerging facts show that investors may not only have lost about N1.864 trillion investments in banks, but have to wait for recovery in the next five years.
http://allafrica.com/stories/200911180847.html
IMF selects Ghana as site for regional technical assistance center in Africa
By Daniel Nonor
The International Monetary Fund’s African Department has selected Ghana as the site of its second Regional Technical Assistance Center in West Africa (AFRITAC West 2). The site selection was officially announced by African Department Director, Antoinette Sayeh, during a recent visit to Accra.
http://www.ghanaian-chronicle.com/thestory.asp?id=14950&title=IMF%20selects%20Ghana%20as%20site%20for%20regional%20technical%20assistance%20center%20in%20Africa
