By Patrick Clark 9/28/12 7:52am

Morning Read

FSA to Announce New Libor Plan; Ex-Credit Suisse CDO Chief to Fight Extradition: Roundup

The British Financial Services Authority is wresting oversight of the London interbank lending rate from the British Bankers Association as part of an overhaul of the process by which Libor is set. The British government will take a more hands on role, and submissions will be delayed for three months, perhaps diminishing the temptation to rig rates for the purpose of managing perception of a bank’s health.

Right on time, The Wall Street Journal has an “analysis” that shows Libor doesn’t actually reflect banks’ borrowing costs.

Kareem Serageldin, the former head of Credit Suisse’s CDO business arrested in London on Wednesday, said he will fight extradition to the U.S. When Mr. Serageldin was charges in February for running a scheme to falsify trading positions, he expressed surprise over the indictment, noting through lawyers that he was cooperating with attorneys. When he was nabbed outside the U.S. embassy in London this week, he said through a lawyer that he was working on a plea deal, and that his capture was the result of “miscommunication.” Read More

By Patrick Clark 9/20/12 7:56am

Morning Read

Critics of High-Frequency Trading Take to Capitol Hill; Hedge Funder Asks, ‘What’s Wrong With Nimbyism?’ Roundup

The Senate Banking Committee will hold hearings on high-frequency trading today, and the Wall Street Journal meets the star witnesses: Dave Lauer, a former trader at Citadel and Allston Capital who plans to tell lawmakers that high-speed trading has made markets less fair for many participants; and Andy Brooks, head of U.S. trading for T. Rowe Price, who will say that rules governing high-frequency trading generally favor bodies with short-term profit incentives. Read More

By Patrick Clark 8/29/12 6:47pm

better late than never

bofa first liens

Apparently No One Told BofA About the Mortgage Servicers Settlement Progress Report

Back in February, the five biggest U.S. mortgage servicers reached a $25 billion settlement with states attorneys general investigation over foreclosure practices.

The terms of the settlement were fairly complex: The servicers would pay about $5 billion in direct payments to states and borrowers, and provide about $20 billion in so-called consumer relief. So much Read More

By Patrick Clark 8/29/12 7:32am

Morning Read

John Paulson Is More Aggressive, Says BofA Exec; Ray Dalio Bowls Over Boatyard for Stamford HQ: Roundup

John Paulson is a more aggressive risk-taker than other hedge fund managers, a Bank of America executive told clients on a conference call yesterday, Bloomberg reports. Mr. Paulson answered questions from BofA’s wealth management clients after Citigroup’s private banking unit redeemed $410 million from Paulson funds last week.

Ray Dalio isn’t making friends in Stamford, Read More

By Patrick Clark 5/17/12 7:46am

Morning Read

JP Morgan Chase Headquarters in New York

JPMorgan Loses Another $1 Billion on Bad Bet, Facebook Brokers Say They’re Out of Stock: Wall Street Roundup

Losses mount: Tack on another $1 billion to the $2 billion-plus in trading losses JPMorgan disclosed a week ago today, says Dealbook, as hedge funds and other investors—knowing that Jamie Dimon’s firm is under pressure to sell out from under the losing bet—continue to prey on the firm’s huge, illiquid position.

Before Bruno Read More