Posts Tagged ‘Floyd Norris’

The Week Unpeeled

Financial news was dominated by Facebook’s launch last week and its apparent blemished opening (“glitched-filled market session, New York Times) with commentators placing blame with Nasdaq and the underwriter, Morgan Stanley. It’s kind of ironic that stories before the launch focused on concerns about whether a young and inexperienced CEO could run a $100-billion-plus company and not whether established institutions could handle a listing. Who should be wearing the hoodies now?)

The headlines did not nudge out JP Morgan’s trading problems, which seemed to grow in size and seemed to make almost certain a big Wall Street/Beltway Volcker Rule shoot out.  Maybe, as Floyd Norris noted on Friday, there will be a thing as “too big to hedge.”

(By the way, interesting read in Friday’s WSJ called “Inside JP Morgan’s Blunder,” which reads at times like a thriller – “He barked, throwing down the papers, ‘I want to see the positions.’”  The themes of too big and too complacent throughout the article and even a tie to Facebook.)

Elsewhere:

  • Hewlett-Packard plans to cut 30,000 jobs;
  • Warren Buffett bought 63 newspapers from Media General (good sign for print?), adding to his media presence, with The Wall Street Journal printing a very appropriate headline: “Call It Berkshire Hathaway Ink.”);
  • European stock markets fell after the credit rating agency Moody's downgraded 16 Spanish banks along with Santander's UK arm;
  • Greece’s exit from the eurozone, dubbed the “Grexit” looks more likely as it was rumored that European officials have began drawing up emergency plans to safeguard the euro;
  • The Olympic flame arrived in the UK on Friday evening, ready for the start of the London 2012 torch relay;
  • Rebekah Brooks, former executive under Rupert Murdoch, was charged over allegations that she tried to conceal evidence from detectives investigating phone hacking and alleged bribes to public officials; and
  • Queen of Disco and Hot Stuff and Bad Girls Donna Summer dies and deservedly earns front-page NYT obit. CJP
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