Greg Coffey, the co-chief investment officer of Moore Capital Management's European business, is stepping away from the trading floor, according to Bloomberg. Mr. Coffey lost money for clients in the last two years amid tumultuous European markets. He joins Brevan Howard co-founder Chris Rokos and energy trader John Arnold among big players to walk away from hedge funds in the last year.

New Citigroup CEO Michael Corbat's experience running the bad bank which disposed of toxic assets in the wake of the financial crisis, will likely come in handy. According to The Wall Street Journal: Citi Holdings accounts for 24 percent of the bank's assets under new capital rules.

Worst-case scenario projections for the Spanish economy used in a stress test of the nation's banks looks increasingly likely, according to some banking analysts.

A lawyer for Rajat Gupta, the former McKinsey & Co. chief executive officer convicted earlier this year of insider trading, said his client should be sent to Rwanda, not prison. Gary P. Naftalis suggested that Mr. Gupta should be sentenced to probation and allowed to spend the time conducting humanitarian work in the African nation, according to The Times. Prosecutors recommended a sentence of eight to 10 years.

Also from The Times article on Gupta: imagine the indignation when Preet Bharara, the U.S. Attorney whose office prosecuted Mr. Gupta, arrived to speak to one of his daughter's Harvard Business School classes.

Morgan Stanley beat analysts' estimates, posting profit of 28 cents a share excluding accounting adjustments, according to a press release today.

Bank of America eked out a small profit in the third quarter, the firm said yesterday.

When states attorneys general agreed to a $25 billion settlement with the nation's largest mortgage servicers, the deal included direct payments totaling $2.5 billion to states themselves. The expectation was that state governments would use the funds for mortgage initiatives, according to The Wall Street Journal, but much of the money is being used to plug budget holes.

The FBI arrested a Bangladeshi man and charged him attempting to detonate a 1,000-pound bomb on the Federal Reserve Bank of New York.

A Department of Justice probe into the collapse of MF Global is going nowhere fast, according to The Wall Street Journal, which reports that former CEO Jon Corzine met with federal investigators for the first time last week. Meanwhile, sources tell The Journal that it's looking more unlikely criminal charges will be filed.

“Many people on Main Street distrust Wall Street right now, yet few can put their finger on why,” said Jamie Raab, publisher of Grand Central, according to The Times.Which is an overwrought explanation for giving former Goldman Sachs executive Greg Smith $1.5 million for his book, Why ILeft Goldman Sachs. A simpler reason: People want the dirt.

England's Financial Services Authority levied an $800,000 fine against Peter Cummings, a former head of corporate lending at HBOS, and Mr. Cummings isn't happy about it:

For the past three and a half years I have been singled out and subjected to an extraordinary Orwellian process by an organisation that acts as lawmaker, judge, jury, appeal court and executioner. The FSA has never had to prove its case to anyone other than itself, and sits safe in the knowledge that few individuals can afford to take it on.

“The decision to single me out for investigation is even more grotesque given that even the FSA has to admit in its notice that other senior people were involved in the critical decisions for which I am taken to task. This is tokenism at its most sinister, and has made it feel throughout like institutional oppression.

Moore Capital Management, the $15 billion hedge fund founded by Louis Moore Bacon, reduced its head count by 10 to 15 people, letting go of research analysts and portfolio managers, according to Bloomberg.

JPMorgan announced another reorganization of its corporate and investment banking division.

Shares in Abercrombie & Fitch rose yesterday after the retailer hired Goldman to help ward off activist investors. Relational Investors, the hedge fund managed by Ralph Whitworth, increased its stake in A&F from about 2 percent to 3.8 percent earlier this year.

Underwriters of initial public offering are increasingly inclined to allow company insiders sell shares before lockup periods end, according to The Journal. Traditionally, underwriters prohibit insiders from selling shares in the first 180 days after an offering, preventing the market for a company's stock from being flooded by sales as employees and early investors look to cash in.

Wall Street may be pulling for Mitt Romney, but it expects Barack Obama to win the presidential election, according to an informal poll conducted by CNBC.

Mr. Sinclair's Expo Health Sciences Fund lost about 8.7 percent last year, and was down 6 percent this year through May. Mr. Sinclair isn't the only hedge fund manager to take to bed in recent months:

Billionaire energy trader John Arnold, former Morgan Stanley co-president Zoe Cruz, and Duke Buchan III are among managers who have shuttered hedge funds in the past year as Europe’s sovereign-debt crisis has roiled global markets.

And:

At least three hedge funds run by former Moore Capital Management LLC traders have shuttered in the past seven months after losing client money. They are Salute Capital Management, run by Lev Mikheev, Avesta Capital Advisors LLC, founded by William Tung and Tim Leslie’s JCAM Global fund.

As for Mr. Sinclair, he told investors that he intends to spend the summer sleeping and relaxing. He may even take up a hobby!