J. P. Morgan Chase has announced plans to cut 17,000 jobs over a two-year period and cut $1 billion of expenses this year. The announcement was made at an Investor Day presentation in New York. The bank employs nearly 260,000 people worldwide. Over the past several years, CEO Jamie Dimon reportedly had been adamant that [...]
Posts belonging to Category Economy
Merrill Lynch has agreed to pay $12 million to settle wage and hour class action lawsuits filed by employees seeking compensation for overtime. The period in dispute is between 2010 and 2012. The employees are referred to as “client associates,” whose job is to support the financial advisers by serving clients and developing new business [...]
The number of brokers switching firms is expected to be higher than average this year for a number of reasons. Among the reasons is a proposed new rule requiring brokers to disclose signing bonuses to clients, which is viewed as very likely to be approved. If brokers switch firms before the rule becomes effective, they [...]
Investment scams targeting senior citizens continue to proliferate in Georgia and across the country. In fact, the Atlanta Journal Constitution recently published an article dealing with financial fraud perpetrated against seniors. The article (“Financial fraud scams target Georgia seniors”) focused on an 81 year-old lady who was the victim of a ponzi scheme. A ponzi [...]
Individual investors who sold and fled the stock market are starting to buy stocks again as stock prices have risen significantly off their lows in March 2009. According to contrarian philosophy, the return of panic sellers to the market is a sign of a market top and an imminent correction. If so, retail investors will [...]
Experts are seeing signs of bubbles in stocks, bonds and farmland. This froth is basically the result of the Federal Reserve’s policy of credit easing – implemented primarily by its purchase of Treasuries and mortgage securities, which lowers interest rates and drives investors into riskier assets. The Fed’s primary reason for doing this is to [...]
The sense that the stock market is rigged became the majority view of disgusted investors in 2012, according to a Yahoo Finance article, “In 2012, Many Felt the Market Was Rigged.” This view is attributable to many factors, including the complexity and lack of transparency of multiple exchanges and alternative networks and the degree to [...]
The lowest yields in 40 years and concern over their tax-exempt status sent municipal bonds into their worst monthly decline since 2010, according to InvestmentNews (“Munis take worst pounding since Meredith Whitney”). As of December 21, municipals were on track to lose 1.9 per cent of their market value for the month. Thanks to the [...]
UBS has announced a major a cost-cutting overhaul that will eliminate 10,000 jobs. The positions will be eliminated mostly from its investment banking division. UBS cited increased regulatory capital requirements and persistent problems in the global economy as reasons for the cuts. The move also follows scandals involving the investment banking division, including a $2.3 [...]
Investors and their advisers should be very cautious about purchasing and holding municipal bonds and municipal bond funds, and be mindful of the possible deleterious effects of the fiscal cliff that is rapidly approaching.
A sell-off in U.S. Treasury securities is a virtual certainty and the only question is when and how, according to major Wall Street bankers. Wall Street banks are big holders of Treasury securities and could suffer large losses if there is a sell-off. Wall Street apparently believes that such a sell-off could be drastic unless [...]
Serious questions have been raised regarding the accuracy of the United States reported 8.1 percent unemployment rate. In fact, one respected expert has stated that the real unemployment rate in the United States is probably 16 percent.
Rising bond prices are indicative of bond risk not safety, Wall Street Journal columnist Brett Arends writes in his article, “Bonds–Headed From Bull Market to Bubble?” He cites bond guru Bill Gross for the proposition that stocks are dead in terms of being suitable investments for long-term growth, and that bonds (historically considered safer than [...]
History can teach us a lot about how to live better in the present. Rarely does one hear any reference to past mistakes or even the past successes that could best resolve our current problems. In the world of capitalist economics this country has decided to embrace the “me” rather than the “we”. Granted capitalism [...]
Bond investors need to be cautious in the current environment. Many bond investors are scared of the stock market but hungry for yields that are higher than those offered by presumably safe Treasuries and are loading up on investment grade corporate bonds. With the global sovereign debt troubles and the U.S.’s fiscal cliff approaching, these [...]