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  • CHART: The Ridiculous Amount of Money Big Banks Spend in Settlement Costs Fight

    The amount of money big banks have spent on settlements in just the last four years will blow your mind - and these totals are about to get higher.

    In December, U.S. Attorney General Eric Holder told Reuters the Justice Department plans on bringing civil mortgage fraud cases against "several financial institutions" sometime in early 2014.

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  • The Real Story Behind JPMorgan's Infamous "Whale" Trade

    Here's an insight for you - along with a trademark indictment, of course.

    Take it with a grain of salt, because it's just an educated guess on my part.

    It's about how the infamous London Whale may have been harpooned by spawn from his own pod.

    For those who haven't heard, the London Whale is one of the latest traders to make the headlines. Bruno Iksil was the top trader at JPMorgan Chase's Chief Investment Office (CIO) in London.

    He got the nickname "the London Whale" for the outsized bets he became known for.

    But this is no fish story...

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  • It Looks Like the Market Is Saying "OMG" Today I want to talk about a few things I've been scratching my head over lately.

    First, about those polls leading up to the presidential contest.

    How come they were so wrong? How come the candidates were inches apart right up to the finish line, and then it's like a "tortoise and the hare" kind of ending?

    Did Romney even finish? Is he finished? Is the Republican Party finished?

    Maybe the problem is the questions they ask, the pollsters, that is, or the way they ask them. Maybe they ask questions like a lawyer leading a witness would.

    You have to wonder who pays for those polls, too. Survey says: the Super PACs - or is that the stupid hacks? Don't you wish they'd post the questions they asked along with the "Survey Says" results?

    And, how stupid are the markets, make that investors, you know who you are. The day of the election, the market was anticipating a Romney victory, after all the polls said it was more than possible, so we got a smart little rally.

    Then reality set in. Four more years. And you think it's going to get better?

    Here's something else to chew on. If you think the Republicans are going to roll over and play dead, now that they are dead, think again.

    The only way to fight back when you're dead is to kill the other guy, so you're both dead. Then, of course, you say, I was dead first, I couldn't have killed the economy, I couldn't have driven us over the fiscal cliff, they did it!

    It looks like the market is saying, OMG (that's Oh My God, for you non-texters), we're going over the cliff and there's no stopping us.

    Trust me on this one, that cliff everyone's been talking about - it ain't the only cliff.

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  • Heavy Betting in the Middle of Mayhem There's going to be a lot of very heavy betting over the next few days, weeks, and months on what's going up, what's going down, and what's going around:

    1. How far will Facebook IPO price go?
    2. How far DOWN from here will JPMorgan go, with the FBI and DOJ now sniffing around?
    3. How far AROUND the globe will the fallout be if Greece loses its game of chicken?


    If you don't have the stomach for what's going to feel like an out-of-control rollercoaster ride, sideline yourself.

    If, on the other hand, you like a lot of action, welcome to Mayhem - the preamble month to what will likely be the Summer of Some Discontent.

    That is, unless you like rapid-fire trading.

    Which, by the way, is not just fun, but can be very, very profitable. I'm in, and so are the subscribers to my Capital Wave Forecast. We're gearing up for some heavy betting in the weeks and months ahead.

    So, what's front and center today? You know. The big three headlines: Facebook, JPMorgan Chase, and Greece. Are you sick of hearing about them? I'm not. I like trading the headlines.

    Here's my "heads-up" on the big three headlines.

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  • Paulson Cuts Stake in Bank of America, Citigroup, and JP Morgan Loading the player ... jwplayer("container").setup({ autostart: true, controlbar: "bottom", flashplayer: "http://s3.amazonaws.com/moneymappress/player.swf", file: "2011/Aug/2011816_Keith_BullsandBears2_MP4_Medium_360.mp4", height: 360, width: 600, provider: "rtmp", streamer: "rtmp://s20mlppiazmugb.cloudfront.net/cfx/st", });... Read More...
  • Investment Banking Earnings Highlight Wall Street’s New Vulnerabilities The collapse of The Bear Stearns Cos. and Lehman Brothers Holdings Inc. (OTC: LEHMQ), the forced takeover of Merrill Lynch and the decisions by Goldman Sachs Group Inc. (NYSE: GS) and Morgan Stanley (NYSE: MS) to get commercial-banking licenses seemed to signal that the investment-banking business model was dead.

    Since then, however, Goldman Sachs, in particular, has posted an astonishing run of profitability, earning gigantic sums even while the rest of the U.S. economy languished.

    But now it may be time for those Wall Street heavyweights to pay the piper: Heavyweights Goldman Sachs and Morgan Stanley are posting their third-quarter results this week. U.S. investment banks are looking at their worst quarter since just after the Lehman collapse. And analysts are slashing revenue forecasts just as the top players in this closely watched and often-vilified sector are getting ready to announce bonuses.

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