High-Frequency Trader Blows Whistle on Exchanges; Goldman’s New CFO Has Big Shoes to Fill: Roundup

Former Goldman Sachs and UBS trader Haim Bodek went to the SEC after he learned that exchanges were offering some high-frequency traders a way to get their trades processed ahead of ordinary investors, according to The Wall Street Journal.

Goldman Sachs’ Chief Financial Officer David Viniar will retire at the end of January, the firm said in a press release yesterday. His replacement, Harvey M. Schwartz, will have big shoes to fill. Mr. Viniar “set the gold standard for CFOs across the industry,” analyst Meredith Whitney said in a note, according to Bloomberg. A graduate of Rutgers University and Columbia Business School, Mr. Schwartz joined Goldman through commodities trading unit J. Aron, the same business in which Goldman CEO Lloyd Blankfein and COO Gary Cohn started in the firm.

Lawyers for the bankruptcy estate of Lehman Brothers sued JPMorgan over $2.6 billion in derivatives claims.

Renee Haugerud, the founder of hedge fund Galtere, describes herself as “a tire kicker, not a screen watcher,” in an interview with Bloomberg Markets magazine. Mr. Haugerud renewed her faith in a recent bet on corn futures after noting the dry soil and shorter -than-usual corn stalks at her firm’s Minnesota test farm.

Depositors pulled about $425 billion euros from banks in Portugal, Ireland, Greece and Spain in the 12 months ended July 31. Deposit flight is creating a two-tiered banking system that undermines European efforts to save the region’s monetary union, according to Bloomberg.

Distressed debt investors such Paul Singer’s Elliott Management are running out of fresh carcasses from which to pick their profits, according to The New York Post.

Short-seller Jim Chanos sees no shortage of overvalued stocks, according to Bloomberg.

A Muslim hacker group may have been responsible for a slowdown on the Bank of America website.

UBS plans to cut 80 to 90 jobs in its European investment banking operation by the end of the year, according to Bloomberg.