| October 14, 2022 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
The Options Industry Conference hops from location to location, coast to coast, resort to resort, and this time it is headed to Music City on April 26 to 28, 2023. That is right, OIC will be in Nashville, Tennessee, home of the Grand Ole Opry and loads of recording studios and bars with live music. The conference will be held at the Grand Hyatt in Nashville.
There is an advertisement for the FIA EXPO below, and before you know it, the biggest futures and options conference in Chicago will be here. There are over 50 exhibitors and 20 sessions and keynotes at EXPO. It is the best place to connect with industry friends and new prospects. You can register by clicking on the ad below or HERE.
The Chicago Bears played the Washington Commanders last night at Soldier Field in Chicago and it was broadcast by Amazon Prime on Thursday Night Football. For the life of me, I could not get Amazon Prime to work on my living room television and I ended up watching the game on an iPad, until I moved to my bedroom where Amazon Prime did work on that Smart TV. That TV does not have Apple TV connected to it. I think Amazon and Apple sometimes just don't like to play nice together.
When is the best time to buy Halloween candy? After Halloween, of course, when the stores are trying to unload the excess inventory they have on hand. But if you are buying it before Halloween, like we all do, to hand out to the little goblins and princesses that show up at our front door, you will notice the price of candy has gone up. According to a New York Post story, Candy prices soar 13% to record levels ahead of Halloween season. So there you have it; your discount after Halloween will be from record prices.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
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MWE: Kevin Wolf - Market Structure Change Presents Commercial Opportunity
JohnLothianNews.com
The fall of Lehman Brothers ushered in a period of regulatory change, with one of the goals being to trim the use of OTC swaps and instead have more centrally cleared products. Given the huge size of that market - at the end of 2014 there was $400 trillion notional outstanding - this regulatory shift presented an opportunity.
That's where Eris Exchange stepped in. Eris is the name of the largest known dwarf planet and also the Greek goddess of strife and discord - a relevant reference given the tumult that birthed the platform. In this video Kevin Wolf, chief business and product development officer with Eris, tells how the exchange took advantage of the regulatory shift and developed a futures contract that simulates OTC swaps.
Watch the video »
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Ken Griffin Backs Ukraine's Math Olympiad Elite Through New Fund; Citadel founder gives $3 million to a scholarship program for displaced Ukrainian students to continue their math and science education.
Amanda L Gordon - Bloomberg
Ihor Pylaiev has had a more intense year than most teenagers. In July, he achieved a perfect 42-point score at the International Mathematical Olympiad and was the overall champion. That was a victory he'd been working toward for years. Everything else has been unscripted: from his school in Kharkiv shutting down almost immediately after Russia invaded Ukraine, right up to this week, taking classes at the University of Cambridge.
/jlne.ws/3rSfYzA
***** Ken supporting STEM is a beautiful thing, wherever it is.~JJL
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'Zero-Click' Spyware Emerges as a Menacing Mobile Threat
Ryan Gallagher - Bloomberg
In July 2020, an Azerbaijani journalist's iPhone silently received a command to open the Apple Music app. Without the journalist's knowledge or interaction, the app connected to a malicious server and downloaded spyware onto the phone that remained there for 17 months, eavesdropping on phone calls and text messages. The hack was an example of a "zero-click" attack-a method of placing spyware on a phone without tricking a user into doing anything, such as clicking on a malicious link sent in an email or text message. It's a technique that governments have utilized to target their opponents on a greater scale and for a longer duration than previously known, according to recent research from Amnesty International and Citizen Lab.
/jlne.ws/3MvKMj6
***** OK, this has me freaked out.~JJL
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Germany Saw No Risk in Russian Gas, Declassified Report Reveals; Document shows assessment of Nord Stream 2 in Oct. 2021; Merkel argued Russia had always been a reliable gas supplier
Arne Delfs - Bloomberg
Four months before the Russian invasion of Ukraine, Germany still claimed that the opening of a new gas pipeline from Russia would pose no risk to energy supplies for the country or the wider European Union, according to a declassified security document. "Overall, the assessment comes to the conclusion that the granting of certification does not jeopardize the security of gas supply in Germany and the European Union," according to a then-top secret report on the Nord Stream 2 link by the economy ministry.
/jlne.ws/3S3UNFg
****** Time to take off the rose colored glasses.~JJL
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Alaska snow crab season canceled as officials investigate disappearance of an estimated 1 billion crabs
Jonathan Vigliotti - CBS News
In a major blow to America's seafood industry, the Alaska Department of Fish and Game has, for the first time in state history, canceled the winter snow crab season in the Bering Sea due to their falling numbers. While restaurant menus will suffer, scientists worry what the sudden population plunge means for the health of the Arctic ecosystem. An estimated one billion crabs have mysteriously disappeared in two years, state officials said. It marks a 90% drop in their population.
/jlne.ws/3gasCaJ
****** This was similar to a Harvard Business School case study that I had in college in a class in summer school. My case was about lobsters in the Northeast. I wonder if you can farm snow crab?~JJL
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New Zealand scientists are breeding sheep to fart and burp less
Jon Daly - ABC News Australia
New Zealand researchers are curbing the country's greenhouse gas emissions one sheep fart at a time. Scientists at Invermay Agricultural Centre in Mosgiel, about 360km south-west of Christchurch, have bred climate-friendly sheep that produce 10 per cent less methane than their gassy counterparts.
/jlne.ws/3CBvjJK
****** They are also being taught to extend their pinkies when they drink tea.~JJL
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Thursday's Top Three
Our top story Thursday was the CME announcement, CME Group Names Jonathan Marcus as General Counsel. Second was The LIBOR to SOFR transition: managing best execution for futures trading, from BMLL. Third was JLN's MarketsWiki Education short video, MWE Short: Rich Mackey - From Golfing To Trading: Decision-making Is Key.
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MarketsWiki Stats
27,035 pages; 241,214 edits
MarketsWiki Statistics
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| All MarketsWiki Sponsors» | | | | | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
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| Lead Stories | Sam Bankman-Fried says he's a 'scaled down' J.P. Morgan of the crypto industry
Chris Matthews - MarketWatch
J.P. Morgan is famous for his organization of bank bailouts in the wake of the 1907 financial panic - a display of financial might that led lawmakers to create the Federal Reserve a few years later. Today FTX founder Sam Bankman-Fried acknowledges there are parallels between Morgan's example and his own purchases of distressed firms during the recent crypto crash. Bankman-Fried said he has played a 'scaled down' crypto version of the role J.P. Morgan did more than a century ago when asked about the comparison during an interview at the Institute of International Finance annual meeting Thursday.
/jlne.ws/3yFk0z4
SEC WhatsApp Probe Digs Deeper Into Asset Managers' Personnel
Lydia Beyoud - Bloomberg
The broad US probe into the use of outside messaging services like WhatsApp at major banks is now sweeping in recordkeepers at big investment firms. The Securities and Exchange Commission has asked money managers for details on who at their firms oversees retention of electronic communications, according to the request reviewed by Bloomberg News. The query is part of a letter that the regulator sent recently to some of the largest players in the industry seeking information on policies and key staff whose texts and emails are supposed to be archived.
/jlne.ws/3rTFEMf
The Fed's Next Crisis Is Brewing in US Treasuries; The central bank can't afford to let the world's most important market seize up. It must act now to restore liquidity for Treasuries.
Robert Burgess - Bloomberg
Markets have been whipsawed in recent weeks, first by talk that a cooling labor market would allow the Federal Reserve to "pivot" away from its aggressive interest-rate hiking campaign, and then by comments from central bankers that any such move would be premature - as Thursday's hot consumer price index report proved. Perhaps there's a solution that would allow the Fed to continue to battle inflation while also addressing what is rapidly becoming a potential crisis in the world's most important market - US Treasuries.
/jlne.ws/3rWcWdz
Liz Truss sacks Kwasi Kwarteng and prepares U-turn on tax cuts; Jeremy Hunt is frontrunner to be new chancellor, say insiders
Jasmine Cameron-Chileshe, George Parker and Sebastian Payne - Financial Times
Liz Truss, UK prime minister, has sacked chancellor Kwasi Kwarteng as she prepares to scrap tax cuts set out in his "mini" Budget less than a month ago. "You have asked me to stand aside as your chancellor. I have accepted," Kwarteng wrote in a letter to Truss that he posted on Twitter on Friday afternoon. "It is important now as we move forward to emphasise your government's commitment to fiscal discipline."
/jlne.ws/3g7CuC1
Colleges Skirt Disclosure Requirements on Bank Partnerships, Report Finds; Federal report says Education Department oversight is lacking, and students may be steered to pricey accounts
Melissa Korn - The Wall Street Journal
The U.S. Education Department has done little to police lucrative relationships between colleges and banks, allowing schools to sidestep disclosure requirements and potentially offer unnecessarily costly products to students, according to a Consumer Financial Protection Bureau report published Thursday. In its annual report to Congress on banking partnerships for institutions of higher education, the CFPB determined schools don't publicize details about the money they make from the deals, and often promote accounts that aren't in students' best financial interest.
/jlne.ws/3CXAlla
Regulators Need Power to Take Down Foreign Crypto Sites, IOSCO Says
Jack Schickler - CoinDesk
Securities regulators should have the power to demand foreign crypto sites be taken down, the International Organization of Securities Commissions (IOSCO) said in a Wednesday report. The proposals from the standard-setter are the latest in a series of crypto crackdowns based on worries over money laundering, tax evasion, financial stability, and the rise in financial advice dished out by novel sources like social media influencers.
/jlne.ws/3Vm9mHn
The Regulators of Facebook, Google and Amazon Also Invest in the Companies' Stocks; The Federal Trade Commission's officials traded stocks and funds more than those at any other major agency, including going heavily into tech shares, The Wall Street Journal found
Brody Mullins, Rebecca Ballhaus, Chad Day, John West, and Coulter Jones - The Wall Street Journal
The top watchdog of American business is also home to Washington's most active Wall Street investors. The Federal Trade Commission in recent years has opened investigations into nearly every major industry. It has launched antitrust probes into technology companies, examined credit card firms and moved to restrict drug, energy and defense-company mergers. At the same time, senior officials at the FTC disclosed more trades of stocks, bonds and funds, on average, than officials at any other major agency in a Wall Street Journal review of financial disclosures at 50 federal agencies from 2016 to 2021. Many of the investments overlapped with the FTC's work.
/jlne.ws/3fVvd88
Ex-Deutsche Bank Star Salesman Tied To $400 Million FX Dispute; Cimolai said to have bought $400 million of FX derivatives; Some derivatives turned sour after euro dropped against dollar
Donal Griffin, Luca Casiraghi, Giulia Morpurgo, and Steven Arons - Bloomberg
NatWest Group Plc, Deutsche Bank AG, Morgan Stanley and JB Drax Honore are among the financial institutions that helped sell currency derivatives to Cimolai SpA, the Italian building firm now struggling with losses on some of the products, according to people familiar with the matter. The quartet are part of the group of more than a dozen firms that arranged the sale of about $400 million of derivatives to Cimolai, some of which have soured as a result of the euro's plunge against the dollar, the people said, asking not to be identified discussing a private matter.
/jlne.ws/3yGhA3a
US senators push for regulator crackdown on carbon offsets market; Letter warns that rather than delivering environmental benefits, the promised emissions claims may be 'fraudulent'
Camilla Hodgson - Financial Times
US lawmakers are pushing the federal regulator to crack down on the market for carbon offsets and draw up new rules for its oversight. A group of Democratic party senators, including former presidential contenders Bernie Sanders, Elizabeth Warren, Cory Booker, Kirsten Gillibrand, have asked the Commodity Futures Trading Commission to address the schemes that are used by companies to offset their carbon emissions.
/jlne.ws/3T9D7d2
Gilts crisis undermines drive to use pension funds for economic growth; Much-flagged government initiative at risk as retirement funds wary of illiquid assets
Harriet Agnew and Emma Dunkley - Financial Times
The liquidity crisis engulfing the gilts markets has put at risk a government initiative to use pension funds to drive economic growth and the transition to a low-carbon economy, executives have warned. As part of the government's post-Brexit vision for the City of London, the UK regulator last year approved a new type of fund that enables investments in long-term, illiquid assets, including venture capital, private equity, private debt, real estate and infrastructure.
/jlne.ws/3EF7Hqr
How weapons of mass destruction saved a pension scheme; Liability-driven investing has been pilloried but a strategy engineered by Goldman Sachs has worked for WHSmith
Tom Braithwaite - Financial Times
In 2005 the head of the General Motors pension scheme hit out at the new fashion for "liability-driven investing". Encouraged by the dotcom crash and new accounting and tax rules, pension schemes were overhauling their portfolios. No longer would they try to generate a decent return from shares. Instead, they would be laser-focused on matching investments with their obligations to future retirees, which implied buying mainly long-dated government securities
/jlne.ws/3VvDYpZ
Crypto Broker NYDIG Lays Off One-Third of Staff to Narrow Focus; Company said last year that it had raised $1 billion at a valuation of more than $7 billion
Vicky Ge Huang and Justin Baer - The Wall Street Journal
NYDIG, the bitcoin trading and banking firm, laid off about a third of its workforce last month, people familiar with the matter said. Company executives informed employees affected by the job cuts, which numbered around 110, on Sept. 22, the people said. Employees were told the firm was seeking to trim expenses and narrow its focus to more-promising businesses, the people said.
/jlne.ws/3Vsqg7a
SEC Could Ease Up on Scope 3 Greenhouse-Gas Emission Reporting, WSJ Panelists Say; Many companies objected to the rules on supply-chain emission reporting as too costly and burdensome
Dieter Holger - The Wall Street Journal
The U.S. Securities and Exchange Commission may pull back on a rule that would require companies to report greenhouse-gas emissions arising from their supply chains and the use of their products, according to panelists at The Wall Street Journal's Pro Sustainable Business Forum on Thursday.
/jlne.ws/3Tn7JqZ
France starts exporting gas to Germany amid energy crisis
Associated Press
France has for the first time started conveying natural gas to Germany, French gas network operator GRTgaz said Thursday, as Berlin strives to diversify its energy supply following the interruption of Russian gas deliveries.
/jlne.ws/3CrxPSI
China Set to Import Brazilian Corn in Challenge to US Supply
Tarso Veloso - Bloomberg
China may start importing corn from Brazil as early as December, part of a drive by the world's top buyer to reduce dependence on the US and replace supplies from Ukraine cut off by the Russian invasion.
/jlne.ws/3gcEFEw
JPMorgan Chase's revenue rose 10% to $32.72 billion in the latest quarter.
David Benoit - The Wall Street Journal
JPMorgan Chase & Co.'s third-quarter profit dropped 17% as the bank built up its defenses for a potential recession and took a nearly $1 billion loss on securities it held. The nation's biggest bank's revenue rose 10% to $32.72 billion thanks to higher interest rates, strong Wall Street trading performance and continued consumer spending. Analysts had expected $32.12 billion, according to FactSet.
/jlne.ws/3S1NvlA
JPMorgan profit drops on higher loan loss provisions as 'headwinds' increase; US bank has set aside $1.5bn to cover potential losses on bad loans amid concerns of economic slowdown
Joshua Franklin - Financial Times
JPMorgan Chase reported a 17 per cent year-on-year drop in quarterly net income, as the bank took a $1.5bn credit loss provision amid growing worries of an economic downturn. The largest US bank by assets said on Friday net income for the third quarter was $9.7bn, down from $11.7bn in the same period last year. The fall was less severe than analysts' estimates of $8.9bn in net income, according to Bloomberg data.
/jlne.ws/3T2sh8B
Citigroup profit falls on higher loan-loss reserves, weak dealmaking activity
Mehnaz Yasmin - Reuters
Citigroup Inc reported a 25% drop in third-quarter profit on Friday as the most global of U.S. banks set aside funds to cover soured loans from a potential economic downturn, while its investment bank struggled with a slump in global dealmaking.
/jlne.ws/3T0wM3i
Credit Suisse's SPG Unit Said to Draw Interest From Mizuho
Gillian Tan and Jan-Henrik Forster - Bloomberg
Mizuho Financial Group Inc. has emerged as a suitor for at least part of Credit Suisse Group AG's securitized products group as the Swiss bank moves closer to a final deal, according to people with knowledge of the matter.
/jlne.ws/3MwgWeh
Wells Fargo books more losses tied to fake accounts scandal; Profits fall more than 30% in third quarter as US lender braces for economic downturn
Imani Moise - Financial Times
Wells Fargo reported a more than 30 per cent decline in profit during its third quarter, as the fourth-largest US bank by assets braced for an economic downturn and booked more losses tied to lingering regulatory issues. Revenue rose 3.6 per cent to $19.5bn, well above Wall Street expectations, fuelled by higher interest rates and loan balances. However, earnings were dented by nearly $3bn in accruals to cover potential bad loans and additional regulatory fallout from the 2016 fake accounts scandal, which has already cost the bank billions of dollars.
/jlne.ws/3CrCCDG
VCs Need the Good Tweets; Also liquidation preferences, anti-ESG, Putin ESG, indoor vs. outdoor investment decisions, Japanese bond market liquidity and yeeting sus altcoins.
Matt Levine - Bloomberg
A decent model for venture capital investing in recent years - though possibly not anymore? - is that capital is plentiful, investment decisions are easy, and the hard part of the job is deal flow. Every year there are some good startups raising money, they get to choose their investors, investors compete to be on the list, and your job, as a VC, is to win that competition and get the good deals. If your skill as a venture capitalist is raising money from limited partners, or evaluating companies and deciding which ones will succeed and which will fail, that's no good. Everyone can do that; it's easy to raise money and to identify the good startups. What's hard is to get an allocation in an investment round with a good startup.
/jlne.ws/3To37Rk
The Global Energy Order Is Unravelling Fast: Welcome to World War E; The mutual needs that tie energy producers and consumers together are giving way to cruder contests over who needs who.
Liam Denning - Bloomberg
Today's Take: World War E; It's October and we've avoided slipping into a third world war for almost eight months, so we have that going for us. Things are escalating on the energy front, though, and not just between Russia and the West.
/jlne.ws/3T3oibO
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | 'Trolling helps show the king has no clothes': how Ukraine's army conquered Twitter; The creative team behind the military's accounts has weaponised humour to win global support
Mehul Srivastava, Christopher Miller and Roman Olearchyk - Financial Times
Earlier this week, a small group of Ukrainians with expertise in video editing, communications and advertising decided to thank France for the weapons it had sent the country's military. "It's France, so we knew we had to do something romantic," said Anna, who helps create content for the team that manages the Ukraine defence ministry's Twitter account and who asked that her real name not be used. "But it also had to remind them that they can do more."
/jlne.ws/3CxO296
Total accused of being complicit in Russian war crimes in Ukraine; NGOs file complaint in France as they attempt to test legal responsibility of European companies active in Russia
Kenza Bryan and Sarah White - Financial Times
TotalEnergies is the target of a criminal complaint accusing the French oil company of complicity in war crimes for allegedly helping the Russian military in its invasion of Ukraine. In a complaint filed on Thursday, the Bordeaux-based NGO Darwin Climax Coalitions and Ukraine's Razom We Stand alleged that a Siberian gasfield part-owned by Total supplied feedstock for jet fuel suspected to have been used by the Russian military against Ukrainian civilians. The Paris prosecutor's office must now decide whether to open an investigation.
/jlne.ws/3MvbhFo
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | ELITE, the Euronext network dedicated to fast-growing private companies, celebrates its 10-year anniversary
Euronext
Over 2,000 companies and 200 partners admitted to the ELITE network since its launch in 2012
Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo and Paris - 14 October 2022 - Euronext celebrates today the 10-year anniversary of ELITE. Launched in Italy in 2012 and now part of Euronext, ELITE is the European network of private SMEs that helps accelerate the process of accessing private and public capital markets. ELITE's mission is to support companies by connecting them to capital, skills and network to drive their sustainable growth in the long term. With over 2,000 companies and 200 partners admitted to its network since its launch, ELITE has become a successful ecosystem. With its integration into Euronext, ELITE is now ready to expand its reach across Europe, developing its network and launching its activities and services to more Euronext countries.
/jlne.ws/3TljXQR
HKEXVoice On An Update On HKEX's Listing Regime
Mondo Visione
In the latest episode of HKEXVoice, HKEX Head of Listing Bonnie Y Chan discusses the latest developments on listing in Hong Kong, including the China Securities Regulatory Commission's recent announcement to include Hong Kong-listed international companies in Southbound Stock Connect, and the recent reforms to enhance the listing regime for overseas issuers.
/jlne.ws/3yF1J4O
Aluminum Inventories Rise as Clock Ticks on LME Ban Discussion; LME on-warrant stockpiles have risen 24% since Oct 4.; Measures by the bourse and the US could rock the market
Eddie Spence - Bloomberg
Aluminum is continuing to pour into London Metal Exchange warehouses, lifting inventory levels at a time when demand is deteriorating and the market is on high alert for signs that unwanted Russian metal could end up on the bourse.
/jlne.ws/3rU10sP
Caution for Investors
NSE
It has been brought to the notice of the Exchange that person named "Suraj Mourya" associated with entity named as "Aimers Trader", operating through twitter account named as "AIMERs_TRADER2022", telegram channel named as "AIMER'S TRADE" and WhatsApp number "9311911733" GPAY no. "9359039244" is offering to handle trading account of investor by asking investors to share their user id and password and is guaranteeing returns on various investment plans and also providing unauthorized Portfolio Management Services. Investors are cautioned and advised not to subscribe to any such scheme/ product offered by any entities/persons offering indicative/assured/guaranteed returns in the stock market as the same is prohibited by law. Further, investors are advised not to share their trading credentials such as user id & password with anyone. It may also be noted that these entities are not registered either as a member or authorized person of any registered member of the National Stock Exchange of India Limited.
/jlne.ws/3rTgdKX
Appendix 3Z - Final Director's Interest Notice - Dr Ken Henry
ASX
Attached is an Appendix 3Z (Final Director's Interest Notice) for Dr Ken Henry AC. ASX notes the late lodgement of this notice due to an administrative oversight and has undertaken a review of processes in place for the reporting of Director interests to ensure timely notifications going forward.
/jlne.ws/351gPmZ
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Hidden Road Launches Industry-First OTC Prime Brokerage for Digital Assets
Hidden Road Partners - PR Newswire
Hidden Road, the global credit network for institutional investors, today announced the public launch of its over-the-counter (OTC) prime brokerage for digital assets, for both US and international counterparties. Hidden Road's credit network facilitates OTC trading between market participants, with trades executed bilaterally between counterparties and intermediated by Hidden Road as the credit counterparty. Hidden Road's OTC prime brokerage will further institutional adoption of digital assets by giving counterparties full ownership and control over their execution technology, liquidity and custodian choice for both fiat and digital assets.
/jlne.ws/3S9hpEI
Twitter says Elon Musk being investigated by US authorities; Social media company's disclosure in court filing comes amid battle over $44bn takeover
Mark Vandevelde, Hannah Murphy and Sujeet Indap - Financial Times
Twitter has said Elon Musk is under investigation by US authorities for "his conduct in connection with the acquisition" of the social media company, according to a court filing. Twitter's lawyers said that they had demanded copies of "substantive correspondence" between Musk and federal authorities over the alleged investigation "months ago", but his team failed to produce them.
/jlne.ws/3rXr1rq
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| Cybersecurity | | Top stories for cybersecurity | Mormon Church Says It Was Target of Cyberattack
Vincent Del Giudice - Bloomberg
The Church of Jesus Christ of Latter-day Saints was the target of a cyberattack, the church announced Thursday. The incident, involving basic personal information of "Church members, employees, contractors and friends," occurred March 23 and was kept confidential at the request of government investigators until Wednesday.
/jlne.ws/3yEYt9V
Crypto Hacker Agrees to Pay $22M in AT&T SIM-Swap Case
Oliver Knight, Christie Harkin - CoinDesk
A 15-year-old crypto hacker, who swindled crypto investor Michael Terpin out of millions, has agreed to pay $22 million to the victim, according to a court filing in the Southern District of New York. The hack dates back to 2018 and involved an elaborate SIM-swap scheme that targeted mobile operator AT&T (T), which ultimately resulted in Terpin losing cryptocurrencies worth $24 million. SIM-swapping is a way of bypassing two-factor authentication (2FA) using mobile operators to break into sensitive websites like crypto exchanges and online banking.
/jlne.ws/3rWZVR8
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| Cryptocurrencies | | Top stories for cryptocurrencies | Bankrupt Crypto Lender Celsius Is Losing Its Minds
Jeremy Hill - Bloomberg
Legions of downtrodden Celsius Network account holders will soon be introduced to an irksome paradox of bankruptcy law: In order to get some of your money back, you may have to pay bonuses to the people who helped put the company in the position of being unable to pay its debts in the first place. The troubled crypto lender this week asked its bankruptcy judge to approve a key employee retention plan, which is lawyer-speak for extra cash doled out to Celsius employees so they won't quit. All told, 62 Celsius employees would share close to $3 million in extra payments in exchange for sticking around to clean up the company's mess.
/jlne.ws/3T2lgEI
India police launches blockchain-based complaint portal on Polygon
Pradipta Mukherjee - Forkast
The Indian police unit in Firozabad city in the northern state of Uttar Pradesh has launched an online complaint portal powered by Ethereum scaler Polygon. The pilot portal, policecomplaintonblockchain.in, leverages blockchain technology's immutability, which means complaints cannot be tampered with or deleted by either the police department or the complainant.
/jlne.ws/3Vlcm6G
Kraken Poaches Gemini Executive in UK Crypto Shake-Up; Blair Halliday will lead Kraken's UK arm, exiting Gemini; Gemini's Stephanie Ramezan to take over in Halliday's absence
Emily Nicolle - Bloomberg
Crypto exchange Kraken hired a new managing director for its UK operations from one of its closest rivals. Blair Halliday, previously UK managing director for the Winklevoss twins' exchange Gemini, is taking over the same role at Kraken, according to a statement published Friday. Halliday will replace Curtis Ting, who has been appointed global senior managing director, covering multiple jurisdictions.
/jlne.ws/3VnJ1c1
Bitcoin Still Guzzles Power But Can Be Greener: Crypto IRL
Tim Stenovec - Bloomberg
The CEO of one crypto mining company says Bitcoin's staggering energy consumption is a feature, not a bug. And despite Ethereum's recent shift from "proof-of-work" to "proof-of-stake," which will greatly reduce the blockchain's power consumption, there's no plan for such a move coming for Bitcoin.
/jlne.ws/3yHkapM
Crypto Firm Tether Says It Has Exited Commercial Paper Investments; The stablecoin issuer says it has sold more than $30 billion in the unsecured debt holdings
Vicky Ge Huang - The Wall Street Journal
Tether Holdings Ltd., the issuer of the largest stablecoin in the world, said Thursday that it has cut its commercial paper holdings to zero and replaced them with U.S. Treasury bills. Commercial paper or short-term IOUs are short-term, unsecured debt issued by companies usually to meet short-term liabilities. Tether said it has eliminated more than $30 billion worth of commercial paper "without any losses," in a blog post and a series of tweets. In August last year, the company revealed that about half of its $62.8 billion in assets were held in commercial paper and certificates of deposit.
/jlne.ws/3Vkh8Bo
CryptoCompare Change Evaluation - September 2022: Crypto Volumes Spike Amid Market-Extensive Promote-Off In September
CryptoCompass.com
The markets continued to say no in September because the Client Value Index (CPI) exceeded the consensus forecast and the US Federal Reserve introduced its choice to lift the rate of interest by 75bps. The crypto property endured a market-wide sell-off in September, with the macroeconomic elements persevering with to overwhelm on danger property. This was mirrored in spot buying and selling volumes, with BTC/USDT spot volumes rising 30.4% to 13.2mn.
/jlne.ws/3TjGiyb
Binance Pool Starts $500 Million Fund to Support Bitcoin Mining
Sam Reynolds - CoinDesk
The crypto winter is taking a toll on companies that man the virtual mines, which has led to cryptocurrency exchange Binance starting a lending facility for bitcoin (BTC) miners. Binance Pool has started a $500 million lending project for private and public miners. The miners will need to pledge security in the form of physical or digital assets for the loan, which will have a duration of 18-24 months.
/jlne.ws/3g5L97V
FT Cryptofinance: Crypto, sanctions and the First Amendment; Plus, updates on some of the industry's biggest exchanges
Scott Chipolina - Financial Times
The hallowed First Amendment probably wasn't the territory the US Treasury had in mind when it imposed sanctions on crypto mixing service Tornado Cash this summer. In August the department had enough of Tornado, claiming it was used to launder more than $7bn and being a channel of choice for North Korea-backed hackers to evade sanctions. Mixers such as Tornado obscure the trail of transfers that would typically be publicly accessible on the digital ledgers that underlie cryptocurrencies.
/jlne.ws/3yFSRwa
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| Politics | | An overview of politics as it relates to the financial markets | Biden Says New Action on US Gasoline Prices Coming Next Week
Akayla Gardner and Jordan Fabian - Bloomberg
President Joe Biden again criticized high US gasoline prices and said he'd announce new actions next week to combat what he described as a key driver of inflation. "The price of gas is still too high and we need to keep working to bring it down," Biden said at an event in Los Angeles. "I'll have more to say about that next week," he added, without elaboration.
/jlne.ws/3VtGDQH
FTX's Sam Bankman-Fried Backtracks on $1B Political Donation, Calls it 'Dumb Quote'
Parikshit Mishra - CoinDesk
Sam Bankman-Fried, the head of crypto exchange FTX, in an interview with Politico's Morning Money backtracked on his remarks to donate up to $1 billion in the next U.S. presidential election. Earlier this year, the billionaire had said that he would spend "north of $100 million" on future political campaigns. In the Politico interview, SBF, as he is popularly known, took back the statement, calling it a "dumb quote."
/jlne.ws/3VqdE0n
Hickenlooper calls for crypto securities rules from SEC
Olafimihan Oshin - The Hill
Sen. John Hickenlooper (D-Colo.) is urging the Securities and Exchanges Commission (SEC) to issue regulations for digital asset securities through a transparent notice-and-comment regulatory process. In a letter sent to the SEC on Thursday, Hickenlooper wrote that existing laws and regulations do not apply to how crypto assets are being used on the market. He said the lack of a coordinated regulatory framework can create "uneven enforcement" and deprive potential investors "a clear understanding of how they are protected from fraud, manipulation, and abuse."
/jlne.ws/3MtDWuC
US Democrat Senator John Hickenlooper Criticizes Gary Gensler's Approach to Crypto at SEC
Jamie Crawley - CoinDesk
U.S. Senator John Hickenlooper (D-Colo.) has become one of the first Democratic senators to publicly criticize the slow approach to crypto taken by Gary Gensler, chair of the U.S. Securities and Exchange Commission (SEC). Hickenlooper said the current lack of a coordinated regulatory framework leads "uneven enforcement" and hinders clear understanding of investor protection in a letter to Gensler first published by Punchbowl News.
/jlne.ws/3rUB54h
Fed Officials Are Worried About the Risks of Doing Too Little on Inflation; Policymakers see risks rising as rates become restrictive; Cost of too little action outweighs costs of too much
Craig Torres and Steve Matthews - Bloomberg
Federal Reserve officials committed to raising interest rates to a restrictive level in the near term and holding them there to curb inflation, though several said it would be important to calibrate hikes to mitigate risks. "Several participants noted that, particularly in the current highly uncertain global economic and financial environment, it would be important to calibrate the pace of further policy tightening with the aim of mitigating the risk of significant adverse effects on the economic outlook," according to minutes from their Sept. 20-21 gathering released Wednesday in Washington.
/jlne.ws/3EBvmrM
Previously Unseen Videos Show Pelosi, Pence Urgently Seeking Help During Jan. 6 Riot; Democrats, Republicans convened in safe rooms during riot; Pelosi, Schumer worried about colleagues, resuming vote count
Laura Davison - Bloomberg
The shaky videos show worried congressional leaders making urgent phone calls, seeking help from governors, other officials and Vice President Mike Pence as they try to get a grip on the Capitol insurrection unfolding around them. In the remarkable clips displayed Thursday by the House committee investigating the Jan. 6, 2021, assault, House Speaker Nancy Pelosi and the Democratic and Republican Senate leaders, Chuck Schumer and Mitch McConnell gather in safe rooms, worrying about colleagues stranded in offices and how to resume certifying the election victory of Joe Biden, a process that the rioters interrupted.
/jlne.ws/3SZPkko
Federal Reserve Board announces it has prohibited five former bank employees from future employment in the banking industry for fraudulently obtaining loans and grants administered under the Coronavirus Aid, Relief, and Economic Security (CARES) Act
Federal Reserve
The Federal Reserve Board on Thursday announced that it had prohibited five former bank employees from future employment in the banking industry for fraudulently obtaining loans and grants administered under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
/jlne.ws/3CWq60t
Elizabeth Warren Singles Out Wells Fargo for 'Alarming Pattern' of Zelle Fraud; Customers' claims have risen sharply in recent years and exceed the rate reported by other large banks, the senator said in a letter to the bank's leader.
Stacy Cowley - The New York Times
Fraud on Zelle, the instant-payments system owned by seven of the nation's biggest banks, has been rising in the past year, leaving hundreds of thousands of defrauded customers with little recourse for recovering their stolen cash. In recent weeks, Senator Elizabeth Warren, Democrat of Massachusetts, has been demanding answers from banks about the scope of the problem. She grilled bank leaders at a Senate hearing last month and followed up with a scathing report about the data that a handful of banks sent her. Now, she's targeting one particular bank for fraud levels she called "profoundly troubling": Wells Fargo.
/jlne.ws/3EGQfSc
Texas Blockchain Council Exec: 'Embarrassing' to See Senators Concerned Over Bitcoin Mining's Energy Use in Texas
CoinDesk
A group of seven Democratic lawmakers in Washington, D.C., led by Sen. Elizabeth Warren (D-Mass.) are looking into the energy usage and carbon emissions of the bitcoin mining industry in Texas as well as the impact on the grid and local consumers. Texas Blockchain Council's Director of Bitcoin Analytics Steve Kinard weighs in.
/jlne.ws/3EIJuQ6
Truss Ousts Kwarteng in Effort to Save Her Premiership; Kwasi Kwarteng ousted as UK chancellor; Truss to hold news conference later Friday; Prime minister set to pivot on tax policies
Bloomberg
There's no explanation in Truss's letter as to why she asked Kwarteng to go, though she does acknowledge he's held the post in "extraordinarily challenging times." Truss's office has released her reply to Kwarteng. She writes: "We share the same vision for our country and the same firm conviction to go for growth."
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| Regulation & Enforcement | | Stories about regulation and the law. | Federal Court Orders California Man and His Company to Pay Over $7.6 million for Commodity Pool Fraud
CFTC
The Commodity Futures Trading Commission today announced the U.S. District Court for the Central District of California entered, on August 22, a default order for a permanent injunction, monetary sanctions, and equitable relief against defendants Daniel Adam Hewko (Hewko) of Irvine, California and Main & Prospect Capital, LLC (MPC) of Suisan, California.
/jlne.ws/3T39SrZ
SEC WhatsApp Probe Digs Deeper Into Asset Managers' Personnel; Watchdog sent letter to firms asking who's who in compliance; Sweeping investigation moves from banks to investment firms
Lydia Beyoud - Bloomberg
The broad US probe into the use of outside messaging services like WhatsApp at major banks is now sweeping in recordkeepers at big investment firms. The Securities and Exchange Commission has asked money managers for details on who at their firms oversees retention of electronic communications, according to the request reviewed by Bloomberg News. The query is part of a letter that the regulator sent recently to some of the largest players in the industry seeking information on policies and key staff whose texts and emails are supposed to be archived.
/jlne.ws/3CuDBDn
New Jersey Real Estate Development Firm and Four Executives Charged With $600 Million Ponzi-like Fraud
SEC
The Securities and Exchange Commission today charged New Jersey-based National Realty Investment Advisors LLC (NRIA) and four of its former executives with running a Ponzi-like scheme that raised approximately $600 million from about 2,000 investors.
/jlne.ws/3TcPmVI
Remarks Before the Small Business Capital Formation Advisory Committee
Chair Gary Gensler - SEC
Good morning, everyone. My thanks to Carla and the members of the Small Business Capital Formation Advisory Committee. As is customary, I'd like to note that my views are my own, and I am not speaking on behalf of the Commission or SEC staff.
I would like to start by thanking Ohio Securities Commissioner Andrea Seidt, who recently concluded her service with the Committee. Andrea represented the North American Securities Administrators Association (NASAA), and I understand that NASAA has selected as their new Committee representative William (Bill) Beatty. Bill serves as the Director of the Securities Division for the Washington State Department of Financial Institutions. Welcome, Bill.
/jlne.ws/3CqB116
Raising the Bar on Diversity, Equity and Inclusion
Commissioner Jaime Lizárraga - SEC
Thank you Sarah for your kind introduction. It is a pleasure to join you today to offer a few thoughts about diversity, equity and inclusion (DEI). And to do so as this year's Hispanic Heritage Month comes to a close. The asset management industry's contribution to our country's financial security is undeniable. You have a direct impact on the financial futures of millions of working families. From grocery store workers, and other essential workers who invest part of their weekly paychecks in a 401(k) managed by a registered fund, to the single mother whose investment adviser helps her save for her daughter's higher education. And, from seniors managing their retirement savings, to teachers, firefighters, and law enforcement officers planning their financial futures.
/jlne.ws/3EHsg5l
Ecosystems and IPOs: Remarks at the Meeting of the Small Business Capital Formation Advisory Committee
Commissioner Hester M. Peirce - SEC
Good morning. Thank you to our committee members for convening and to our panelists for joining today's meeting.[1] Thank you to Andrea Seidt from the great state of Ohio for lending your talents. Welcome to Bill Beatty, who will take Andrea's place as the NASAA representative. I am grateful that today's discussion will cover two vitally important topics for smaller businesses: entrepreneurial ecosystems and trends in going public.
/jlne.ws/3eA4v4Q
Statement on Staff's FAQ Relating to Investment Adviser Considerations of DEI Factors
The staff has issued an FAQ on an adviser's fiduciary duty when considering factors relating to diversity, equity, and inclusion (DEI) in the selection or recommendation of other investment advisers.
Commissioner Caroline A. Crenshaw and Commissioner Jaime Lizárraga - SEC
The staff guidance can be found here on the SEC's website. The FAQ is issued in response to the 2021 Asset Management Advisory Committee's (AMAC) report and recommendations to the Commission on diversity and inclusion, addressing the "well-known and widely acknowledged" lack of gender and racial diversity in the asset management industry.
/jlne.ws/3Tf47HK
This Week in Crypto: SEC Investigates Yuga Labs, What's Happening in China; A look back at this busy week in digital assets.
Victoria Vergolina - Bloomberg
It's been (another) busy week for digital assets. And now that we're well into October, we have a better idea of whether the month will deliver a boost to crypto value as it has in years past. Guest-host and senior crypto editor Anna Irrera reviews some regulatory actions that took place this week and considers what smoke signals it may be sending to investors and to companies. Plus, a look at how China's crypto ban has played out - spoiler alert: it's not unfolding like many expected it would.
/jlne.ws/3S4fHUV
FCA fines Gatehouse Bank £1.5m for poor anti-money laundering checks
FCA
Between June 2014 and July 2017 Gatehouse failed to conduct sufficient checks on its customers based in countries with a higher risk of money laundering and terrorist financing. Gatehouse also failed to undertake the correct checks when some of the customers were classed as Politically Exposed Persons (PEPs).
/jlne.ws/3rWvtqs
Former account executive of Fulbright Securities Limited convicted of securities fraud
Securities & Futures Commission of Hong Kong
The Eastern Magistrates' Court has convicted Mr Danny Fung Kwong Shing, a former account executive of Fulbright Securities Limited, of the offences of engaging in fraud or deception in transactions involving securities under the Securities and Futures Ordinance (SFO) in a criminal prosecution brought by the Securities and Futures Commission (SFC) (Notes 1 & 2).
/jlne.ws/3CUcS4p
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | A Trader's Guide to China's Must-Watch Party Congress; Traders look for Covid policy shift, property sector support; Tensions with US also in spotlight as Xi outlines future plans
Rebecca Choong Wilkins and Abhishek Vishnoi - Bloomberg
Pessimism is running high for China's economy and markets heading into the twice-a-decade party congress, and investors are looking to the leadership gathering to steer the nation out of a slump. The stakes couldn't be higher for the meeting, which will begin Sunday with a speech by President Xi Jinping. The benchmark CSI 300 Index has lost 24% this year, while the offshore yuan has weakened about 11% against the dollar, on track for its worst annual showing since data going back to 2010. The economy is set to grow at a slower pace than the rest of developing Asia for the first time in more than three decades.
/jlne.ws/3VqyQmQ
Aluminum Traders Game Out the Options: Sanctions, Tariffs or Ban
Mark Burton and Joe Deaux - Bloomberg
News that the US may target Russian aluminum in retaliation for attacks in Ukraine is sending shivers through the global metals market, reviving memories of the panic that followed previous sanctions on United Co. Rusal International PJSC just four years ago. The Biden administration is eyeing three potential measures after Russia's strikes on Kyiv and other Ukrainian cities this week, Bloomberg reported on Wednesday. Traders are now scrambling to game out the consequences of any potential penalties.
/jlne.ws/3Vrkd2I
BlackRock Hopes Investors Rediscover the Joy of Bonds; Investors have been worried about the effects of volatility on their fixed-income investments, but that might not be the long-term trend
Telis Demos - The Wall Street Journal
Bond prices aren't doing much to help investors or asset managers right now. But the longer-term appeal of fixed-income yields may be a saving grace for all. BlackRock on Thursday reported a 15% year-over-year decline in third-quarter revenue, driven by the effects of falling market prices and a strong dollar on asset values and fees. With the prices of both stocks and bonds being hit by uncertainty about inflation, the economy and the pace of interest-rate changes, that has been the story of much of the year for asset managers. Shares of BlackRock are down by nearly 40% since the start of 2022.
/jlne.ws/3g6sEjU
Kroger agrees to buy Albertsons in $24.6bn grocery deal; Antitrust hurdles are high on merger to create one of the biggest US supermarket chains
James Fontanella-Khan, Ortenca Aliaj, Antoine Gara and Sujeet Indap - Financial Times
Kroger has agreed to acquire rival Albertsons for $24.6bn in a deal that would create one of the US's largest grocery store chains if it can overcome significant antitrust hurdles. The Cincinnati, Ohio-based company has agreed to pay $34.10 per Albertsons share, an almost 33 per cent premium to the group's share price as of October 12. The price includes $4.7bn in debt.
/jlne.ws/3rVC44h
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | World Food Day: What it is and why it's more important than ever ; World Food Day brings awareness to stark projections - including ones from the FAO suggesting that 670 million people will still be facing hunger in 2030.
Stefan Ellerbeck - Formative Content
World Food Day is an annual call to action by the United Nations on 16 October each year. Almost one in ten people globally are undernourished, and more than 3 billion can't afford a healthy diet, according to the Food and Agriculture Organization (FAO). Conflict, climate change and rising prices are all contributing to growing food insecurity around the world. The FAO says governments should re-evaluate their support to agriculture to help improve sustainable production of more nutritious foods.
/jlne.ws/3g7Dsy9
BIS: Gender Diversity In Bank Boardrooms And Green Lending: Evidence From Euro Area Credit Register Data
Leonardo Gambacorta, Alessio Reghezza, Martina Spaggiari and Livia Pancotto - BIS Working Papers
Since banks play a pivotal role in modern financial systems, they can help to accelerate the transition to a carbon-neutral economy if they make more sustainable lending decisions. A bank's climate strategy and related decision-making depend on the trajectory defined by the board, which in turn depends on the board's diversity. The presence of women in banks' boardrooms can add value along several dimensions, as explained by sociological and physiological theories, as well as empirical evidence.
/jlne.ws/3s0SGrb
Not-Yet-Green Debt Sold by Polluters Poised to Hit $1.5 Trillion; Companies turning to transition bonds to reduce emissions; China, Japan, Canada leading the charge in new market
Sheryl Tian Tong Lee and Greg Ritchie - Bloomberg
Transition bonds are poised to be the next big thing in sustainable debt as heavy polluters worldwide look to raise money to help them clean up their acts, according to a climate finance group. The market for these new securities is set to hit $1.5 trillion by the end of the decade, up from just $12 billion, according to the Climate Bonds Initiative, the world's No. 1 certifier of green debt.
/jlne.ws/3T82Mmb
More African countries implementing ESG finance policies - study
Rachel Savage - Reuters
A growing number of African countries has introduced financial market policies related to environmental, social or governance issues, a study said on Thursday, as a global push to invest more sustainably gathers pace. Seventeen countries on the continent now have some sustainability-focused policies, out of 26 surveyed by think-tank Official Monetary and Financial Institutions Forum (OMFIF) and South African bank Absa, up from 12 last year.
/jlne.ws/3RW3iT3
Sports Leagues and Airlines Want More Sophisticated Weather Data; As climate change fuels more dangerous and unpredictable storms, companies and sports leagues rely on weather data from Tomorrow.io to help navigate the future.
Mark Bergen and Brody Ford - Bloomberg
Serena Williams walked onto the tennis court in New York to thwack practice shots on a Wednesday morning in August a week before her final appearance at the US Open. Up above, in a box office at the Arthur Ashe Stadium in Queens, the tournament's head honchos ignored the superstar. They were transfixed by 17 monitors in the room, which showed local weather patterns, heat levels, and live camera feeds around the stadium. All those data points were designed to answer one question: Should they close the roof?
/jlne.ws/3ECAcFc
ESG momentum, now under strain, faces changing landscape: Podcast
Thomson Reuters
In this week's podcast available on the Thomson Reuters Institute channel, Lindsey Rogerson and Henry Engler, editors with Thomson Reuters Regulatory Intelligence, speak with Natalie Runyon, director of ESG content for Thomson Reuters Institute, about the newly released SPECIAL REPORT: ESG Under Strain, which digs deep into the current challenges governments and companies are facing on the ESG front.
/jlne.ws/3rTSSbI
Substantive Research Wins "Best Dashboard Solution For ESG" At The ESG Insight Awards 2022; We are delighted to announce that our ESG Dashboard has won "Best Dashboard Solution for ESG" at the A Team ESG Insight Awards 2022.
Mondo Visione
Substantive Research's product was voted the winning solution by members of the financial community in the ESG space. ESG continues to grow in importance for investors across the globe. Accordingly, the number of ESG investment research and data providers continues to grow and evolve. As large, established providers regularly update their offerings and a thriving ecosystem of niche and independent providers continues to grow, the ESG data market is extremely dynamic. For buy-side institutions, it can be a challenge to understand the growing wealth of options available and which may be best suited to their investment goals.
/jlne.ws/3TnWpuE
Louisiana to Fink: Drop Dead
John Authors - Bloomberg
This letter to Larry Fink, the CEO of BlackRock Inc., from John Schroder, Louisiana's state treasurer, is well worth reading. In it, he explains why BlackRock's espousal of ESG funds (although the money it runs for Louisiana is not on an ESG basis) has led the state to divest from all BlackRock funds. It expresses the philosophy of opposition to environmental, social and governance investing most eloquently. But the bottom line, I fear, is that it cedes an essential point to the backers of ESG. Fund managers are allowed to take the broader interests of their members into account, and not just the narrowly financial ones; and it is perfectly justifiable to base investment decisions on political ends or principles.
/jlne.ws/3SUVhyV
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Wells Fargo's San Francisco headquarters houses no member of its 'senior leadership team'
Mark Calvey - San Francisco Business Times
No one from Wells Fargo's 17-member "senior leadership team" remains based at the bank's headquarters in San Francisco, the bank told me Wednesday. The senior leadership team, as outlined on the bank's website, includes CEO Charlie Scharf and the C-suite along with other senior executives, such as the heads of several business units. As recently as February 2020, Wells had four members of its then 15-member senior leadership team based in San Francisco, where the bank (NYSE: WFC) was founded in 1852 amid the Gold Rush.
/jlne.ws/3TiqADA
Wall Street Banks Expected to Deluge Markets With Bonds After Earnings; Barclays expects up to $45 billion sold in fourth-quarter; Borrowing costs are rising but investor demand remains strong
David Caleb Mutua - Bloomberg
Banks could be about to deluge the market with more bonds after they post quarterly results, borrowing at a breakneck pace even as other blue-chip companies pull back, and bondholders could suffer in the process. Barclays Plc projects the six largest US banks will raise between $35 billion and $45 billion in bond markets in the fourth quarter, compared with an average of $30 billion for the quarter since 2014. In the weeks after earnings, the firms might sell as much as $30 billion, the lender forecast. Banks are selling bonds as Federal Reserve rate hikes spur depositors to put their money elsewhere, cutting into a key funding source for the lenders and forcing the firms to find other financing.
/jlne.ws/3g6zkhT
Apple Teams With Goldman Sachs to Offer Savings Accounts; Card rewards can be automatically deposited into new accounts; Goldman has been scaling back ambitions for consumer business
Steve Dickson and Sridhar Natarajan - Bloomberg
Apple Inc. and Goldman Sachs Group Inc. will team up to offer savings accounts to users of the tech company's credit card. "Apple Card users will be able to open the new high-yield savings account and have their daily cash automatically deposited into it -- with no fees, no minimum deposits and no minimum balance requirements," Apple said in a statement Thursday. Daily cash refers to the rewards that card users generate through their purchases.
/jlne.ws/3VsBCbq
Ex-BOE Official Tucker Suggests Cutting Payouts on Bank Deposits; Paul Tucker says UK could save £37 bln by slashing QE interest; Ex-BOE Deputy Governor writes chapter for IFS Green Budget
Philip Aldrick - Bloomberg
The UK could save £37 billion ($42 billion) a year for the next two years by changing the way the Bank of England's money-printing program works, according to a former deputy governor of the central bank. Writing for the Institute for Fiscal Studies, Paul Tucker argues that the government should consider reducing the interest paid on some deposits held by commercial lenders at the BOE. Under Tucker's proposal, the move could save between £30 billion and £45 billion in each of the next two years, on average equivalent to "around 9% of recent annual spending on health, education and defence."
/jlne.ws/3RZEbie
Credit Suisse's SPG Unit Said to Draw Interest From Mizuho; Mizuho CEO has said more room for what bank can do in America; Credit Suisse to unveil results of strategic review Oct. 27
Gillian Tan and Jan-Henrik Foerster - Bloomberg
Mizuho Financial Group Inc. has emerged as a suitor for at least part of Credit Suisse Group AG's securitized products group as the Swiss bank moves closer to a final deal, according to people with knowledge of the matter. The Japanese bank is competing against parties including Apollo Global Management Inc., Centerbridge Partners, Pimco and Sixth Street, said the people, all of whom requested anonymity discussing private information.
/jlne.ws/3gb7gcY
A Central Bank on the High Wire; Andrew Bailey, the Bank of England chief, is trying to calm markets, wrestle inflation and maintain the bank's credibility amid Britain's financial storm.
Eshe Nelson - The New York Times
Andrew Bailey is in an unenviable position. As governor of the Bank of England, he must rein in inflation, which is rising at the fastest pace in 40 years. And now he must also clean up much of the early fallout from the policies of Liz Truss, the prime minister of Britain, and her fledgling government, whose tax-cutting fiscal agenda sent shock waves through Britain's financial markets. Mr. Bailey has a laundry list of challenges, including returning order to a dysfunctional bond market, stopping the turmoil in the pension fund industry from precipitating a full-blown financial crisis and protecting the central bank's independence from the government.
/jlne.ws/3rVYPoK
Credit Suisse capital gap conundrum draws analyst answers
Noele Illien - Reuters
As Credit Suisse finalises a much-anticipated restructuring, analysts are crunching the numbers on how much capital the bank may need and suggesting how best to plug that gap. Some say Switzerland's second-largest bank could be left with a shortfall of as much as 9 billion Swiss francs ($9 billion) in the coming years, which could mean a significant retrenchment from capital-intensive investment banking.
/jlne.ws/3EFzUxe
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| Wellness Exchange | | An Exchange of Health and Wellness Information | China Virus Czar Joins Chorus Defending Covid Zero Despite Costs
Linda Lew - Bloomberg
China has defended its controversial and costly Covid Zero policy for the fourth day in a row -- this time through one of the country's top virus officials -- as authorities ramp up efforts to quell discontent ahead of the twice-a-decade Party Congress.
/jlne.ws/3CwNRuU
JPMorgan, Morgan Stanley among more than 40 firms on bottom tier in mental health ranking; A report by asset manager CCLA finds that some of the largest companies fall short on employee mental health
David Ricketts - Financial News
Some of the world's largest listed companies fall short when it comes to employee mental health, with a handful of US banks including JPMorgan and Morgan Stanley named among firms with more work to do. According to a corporate mental health benchmark of the world's 100 largest listed companies - based on market cap and number of employees - just 15% have published objectives or targets for mental health, while less than a fifth have assigned day-to-day operational responsibility for implementing policies.
/jlne.ws/3CCdz0S
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | India Sells Sugar in 'Golden Opportunity' on Tight Global Market
Pratik Parija - Bloomberg
Sugar makers in India are signing deals with traders and exporters on optimism that the government will soon announce overseas sales quotas for the season that starts this month. Mills in the South Asian country, which vies with Brazil as the world's top sugar producer, have so far contracted to export about 1.2 million tons and aim to ship as much as 8 million tons in the 2022-23 year, according to Rahil Shaikh, managing director of trading company Meir Commodities India Pvt.
/jlne.ws/3rTqPcA
Venture Miami Scholarship Program Closes the Gap for Miami Students Pursuing a STEM Education
Rebecca Fishman Lipsey - The Miami Foundation
City of Miami Mayor Francis X. Suarez today announced a partnership between Venture Miami (City of Miami) and The Miami Foundation to launch the Venture Miami Scholarship program, with funding from Citadel founder and CEO Ken Griffin. The program provides tuition support to in-need City residents who have been accepted into STEM and other in-demand occupation programs at participating local colleges and universities, including the University of Miami, Florida International University, Florida Memorial University, and Miami Dade College.
/jlne.ws/3EGzQ09
With Just 26 Days of Heating Oil, US Households Face Costliest Winter in Decades; Inventories are at the lowest seasonal point in weekly data; Heating costs seen surging to the highest in at least 25 years
Julia Fanzeres and Lucia Kassai - Bloomberg
This winter is shaping up to be the costliest for heating in a generation -- especially for households in the US Northeast that must burn oil to stay warm. With temperatures already dropping, the US has just a 26-day supply of heating oil to draw on, the smallest store for this time of year in at least three decades. National inventories of the fuel are once again at the lowest seasonal point in weekly data going to 1982, according to the Energy Information Administration.
/jlne.ws/3g8PYgP
Brown University Endowment Falls 4.6% in Latest Fiscal Year
Francesca Maglione - Bloomberg
Brown University's endowment fell 4.6% in its most recent fiscal year, adding to a growing list of US colleges reporting investment losses. That's a sharp reversal from the previous year, when Brown earned the highest returns among Ivy League endowments with a 52% gain. The fund, the smallest of the eight, was valued at $6.5 billion as of June 30, a $400 million decrease from fiscal 2021, the Providence, Rhode Island-based university said in an emailed statement.
/jlne.ws/3fWpPBG
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