Wall Street

Why the UBS Dark Pool Fine Is So Absurd

UBS dark pool fine

The UBS dark pool fine announced last week is yet another example of the U.S. Securities and Exchange Commission dropping the ball on one of the biggest schemes staring them right in the face.

The SEC came down on UBS Group AG (NYSE: UBS) for not following the rules and regulations that make markets fair and orderly - and also for not being honest to its clients.

But this "record" fine wasn't really newsworthy - in fact, it was pretty absurd...

The Truth About This "Meltdown" Indicator

meltdown indicator

We talk about why you should always be in the stock market (and NOT for the same reasons Wall Street wants you in, either). That's because being in the markets allows you tap into the inevitable growth that comes from capitalism and, by implication, humanity's upside.

Lately, though, people are beginning to doubt the premise behind that Total Wealth tactic.

That's due partly to recent trading action (which is unsettling), and partly due to the hype surrounding various indicators that are almost "guaranteed" to show a looming meltdown (which is unnerving).

Right now the scary indicator making the rounds is record "total margin debt." Chances are you've probably seen the emails, too.

According to the New York Stock Exchange, investors have borrowed more than $457 billion against their brokerage accounts as of November 2014 - a new record. The social meme - the mantra, if you will - is that so much debt is unsustainable, and that it potentially undermines the entire market.

I get that... Debt is a four-letter word after all, especially when it comes to the central bankers and Wall Street fat cats. But this is different.

In fact, I'd even go so far as to chalk this up to another case of "it isn't what it seems."

Here's the truth about this "meltdown" indicator...

JPM Stock Price Hit by Earnings Miss – but Bigger Troubles Ahead

JPM stock price

The JPMorgan Chase & Co. (NYSE: JPM) stock price faltered more than 4% on this morning on an earnings miss.

JPMorgan was hit hard by legal fees. The bank, along with several other big banks across the globe, had to cough up just over $1 billion. Most of that stems from a November settlement tied to shady activity in the foreign exchange market. But legal fees are nothing new.

JPMorgan is facing much bigger problems than the routine settlements...

A U.S. Court Practically Declared Insider Trading Legal

insider trading

Wednesday, December 10, 2014, was a great day to be an insider trader.

A three-judge panel of the U.S. Second Circuit Court of Appeals overturned insider trading convictions of former hedge fund managers Todd Newman and Anthony Chiasson.

Not only did the appeals court reverse the much-publicized guilty verdicts against the two traders, its 28-page decision effectively rewrites the meaning of insider trading.

The immediate outcome of the decision not only affects the two hedge fund executives, other traders convicted of insider trading, and charged individuals who pled guilty, it will also change how traders use inside information to their benefit in the future.

The court decision is as surprising as it is profound...

Latest Wall Street Lies Expose the Danger with Analyst Reports

Wall Street lies

Bad behavior on the part of the big investment banks is almost a cliché by now, but some Wall Street lies can harm individual investors more than others.

This came to light again last week when the Financial Industry Regulatory Authority (FINRA) slapped a $15 million fine on Citigroup Inc. (NYSE: C) for giving privileged clients a much different opinion of certain stocks than the bank was publishing in its reports.

And Citi is not alone.

Here's why regulators can't stop this kind of thing, no matter how many fines they impose...

Science Proves What We Said About the Banksters

Thoughtful Investor

"Business culture in the banking industry is favoring, or at least tolerating, fraudulent or unethical behaviors."

That's what Ernst Fehr told reporters in a telephone interview last week.

Fehr is an economist at the University of Zürich in Switzerland who co-led a study about business behavior.

Fehr's study proves what we've all long known - but it wasn't the only piece of news last week that demonstrates the crookedness of bankers.

Today I'll show you how Wall Street's manipulations are affecting the prices we pay for everything from the cars we drive to our pots and pans.

So you know you want to know more about this...

How We'll Play the 2014 Year-End Rally

what stocks do after midterm elections wall street

With the Dow Jones Industrials and the S&P 500 indices repeatedly making new highs, chances are better than good that markets will rally through year-end.

There are lots of reasons why stocks are headed higher, but one in particular is telling.

It's really a simple one, yet too many people have overlooked it; indeed, most wouldn't even give it enough thought.

And that would be a big mistake.

You see, if you understand that one compelling reason, you can pick some winners, and pocket big profits, yourself...

What It Means for the Stock Market if the GOP Wins the Senate

stock market

With the midterm elections set for tomorrow (Tuesday) most political pundits are predicting that the Republicans will take enough seats in the Senate to regain a majority.

But what will that mean for the stock market today? Has Wall Street already factored in a GOP victory?

In this video Fitz-Gerald explains how the U.S. stock markets will react to the midterm elections - and what happens next...

How to Get a Piece of Wall Street Profits Without the Wall Street Corruption

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There's simply no limit to how far Wall Street will go to make a buck.

It's no wonder. With corporate offenses and "bad behavior" routinely going unpunished, perpetrators have developed a sense of immunity.

But just weeks ago there was an indictment in a case of alleged manipulation of commodities futures.

It's the first ever federal prosecution for "spoofing," a tactic I recently discussed.

While we wait to see if it either sets the tone for a wider crackdown or proves to be little more than a slap on the wrist, we can also take the opportunity to profit.

Here's how we're going to play a non-bank investment against a rigged services industry...

Why Market Volatility Is the New Normal

market volatility

Market volatility is back with a vengeance. The triple-digit moves in the Dow Jones Industrial Average we're seeing almost daily are telling us that markets are very nervous.

Investors are jumping out because they don't want to get caught in a correction, and they're jumping back in because they don't want to miss the next leg up. However, things aren't exactly what they seem to be.

Here’s the truth about the new volatility…

The Real Reason Price Fixing Is Coming to an End

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"Price fixing" or "fix" are Wall Street terms used to describe how benchmarks are priced on hundreds of instruments, from the Libor and other foreign currency exchange rates to gold, silver, and swaps.

While the methodologies used to determine fixes are different, in all cases where benchmarks are fixed by panels, the input of the bankers is what results in the output.

But here’s where things get a little… funny.

Here's What the Secret Goldman Sachs Tapes Really Mean (NYSE: GS)

Goldman Sachs

"The Secret Recordings of Carmen Segarra" was broadcast on NPR's "This American Life" on Sept. 26. Carmen Segarra, a former Fed examiner in the bowels of Goldman Sachs Group Inc. (NYSE: GS), secretly recorded some of the goings-on there.

And what was revealed in those tapes speaks a lot to who's really running the show there - the Fed or the big banks.

We’re all screwed. Here’s why…

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