regime uncertainty

Dick Bove: US Assault on JPMorgan Is ‘Coordinated from Above’

"The various government legal moves against JPMorgan Chase represent a coordinated assault on the nation's biggest bank, says star bank analyst Dick Bove at Rafferty Capital Markets. Given that eight government agencies are now suing JPMorgan over various issues, apparently including four to six lawsuits from the Justice Department: 'What is it about this company which makes it unique relative to all other American companies, that all of these agencies come down on this company at the same point in time?' Bove said. 'This has to be coordinated by someone, and it has to be coordinated by someone above each one of the individual agencies.'" Continue reading →

Continue ReadingDick Bove: US Assault on JPMorgan Is ‘Coordinated from Above’

Obama Presses for Action on Bank Rules

"President Obama urged the nation’s top financial regulators on Monday to move faster on new rules for Wall Street, telling them in a private White House meeting that they must work to prevent a repeat of the 2008 financial crisis. Administration officials and some lawmakers have expressed frustration that critical parts of Mr. Obama’s overhaul of the financial system, which was voted into law three years ago and is known as the Dodd-Frank act, remain unenforced as an alphabet soup of federal agencies wrangle over how to adopt it." Continue reading →

Continue ReadingObama Presses for Action on Bank Rules

US court rules that IP cloaking to access blocked sites violates CFAA law

"The legal dispute began in July 2012 when Craigslist sent a cease-and-desist letter to apartment listing app PadMapper, claiming it was violating the site's terms of service by scraping apartment rental information from the online classifieds site. Craigslist argued that the 3Taps' subterfuge violated the CFAA, which prohibits the intentional access of a computer without authorization that results in the capture of information from a protected computer. The 1984 law, which was invoked in the federal prosecution against late Internet activist Aaron Swartz, has been criticized as overly broad." Continue reading →

Continue ReadingUS court rules that IP cloaking to access blocked sites violates CFAA law

US court rules that IP cloaking to access blocked sites violates CFAA law

"The legal dispute began in July 2012 when Craigslist sent a cease-and-desist letter to apartment listing app PadMapper, claiming it was violating the site's terms of service by scraping apartment rental information from the online classifieds site. Craigslist argued that the 3Taps' subterfuge violated the CFAA, which prohibits the intentional access of a computer without authorization that results in the capture of information from a protected computer. The 1984 law, which was invoked in the federal prosecution against late Internet activist Aaron Swartz, has been criticized as overly broad." Continue reading →

Continue ReadingUS court rules that IP cloaking to access blocked sites violates CFAA law

India’s war on gold fails to protect the rupee, which keeps plunging

"The fresh currency falls also increased pressure on the debt markets. Yields on India's 10-year debt spiked above 9 per cent for the first time since late 2011, while Jakarta's cost of borrowing jumped 18 basis points to the highest level since March 2011. Over the weekend a range of senior figures including Prime Minister Manmohan Singh tried to calm investor fears that the country's mixture of weakening growth and an unsustainable current account gap was pushing India’s economy towards a crisis point. Notably, officials ruled out capital controls on foreign investors." Continue reading →

Continue ReadingIndia’s war on gold fails to protect the rupee, which keeps plunging

Fear of Fed Retreat Roils India

"After a growth spurt from 2006 to 2011, the country lapsed back into a plodding pace as economic reforms lost steam. India's government, in an effort to narrow the current-account gap, has tried to curb gold imports and announced a plan to buy more of the country's oil from Iran through what is effectively a barter mechanism. On Wednesday, the country reduced the amount of money residents and companies can send abroad, sparking fears of more-draconian measures. The government says these moves aren't a prelude to capital controls and that it doesn't plan to impose restrictions on companies repatriating profits." Continue reading →

Continue ReadingFear of Fed Retreat Roils India

A Summer of Troubles Saps India’s Sense of Confidence

"The Indian government recently loosened restrictions on direct foreign investment, expecting a number of major retailers like Walmart and other companies to come rushing in. The companies have instead stayed away, worried not only by the government’s constant policy changes but also by the widespread and endemic corruption in Indian society. Wednesday night, the government announced measures to restrict the amounts that individuals and local companies could invest overseas without seeking approval. It was an astonishing move in a country where a growing number of companies have global operations and ambitions." Continue reading →

Continue ReadingA Summer of Troubles Saps India’s Sense of Confidence

Repo Market Decline Raises Alarm as New Regulations Strain Debt

"The U.S. repurchase, or repo, market where banks and investors borrow and lend Treasuries and other fixed-income securities shrunk to $4.6 trillion daily outstanding last month, down 35 percent from 2008. Financial institutions are responding to more stringent capital standards imposed by regulators around the world. Already, the group of dealers and investors that advise the U.S. Treasury say that they see declines in liquidity in times of market stress, including wider gaps between bid and offer prices and the speed of completing trades. The potential consequences are higher borrowing costs for governments, companies and consumers." Continue reading →

Continue ReadingRepo Market Decline Raises Alarm as New Regulations Strain Debt

“Government Laboratory” for “Unlimited Taxpayer Risk” Now Slated for Demolition

"House Financial Services Committee Chairman Jeb Hensarling (R-TX) has described Fannie and Freddie as the product of a ‘government laboratory’ and one that exposes taxpayers to ‘unlimited risk.' Hensarling and others in the House are working on legislation to end the companies for good. Now that the president is on board, with apparent bipartisan support, it seems that reality may not be far off. Investors appear to be speculating on news the feds may actually pay off debt to taxpayers and recapitalize. Since liquidation appears to have broad support in the government, Fannie and Freddie look like stock to steer clear of." Continue reading →

Continue Reading“Government Laboratory” for “Unlimited Taxpayer Risk” Now Slated for Demolition

Bitcoin: A Primer for Policymakers

"A new Mercatus Center at George Mason University study addresses many of the common misconceptions about Bitcoin and describes how the digital currency works. The study also analyzes current laws and regulations that may already cover digital currencies and warns against preemptively placing regulatory restrictions on Bitcoin that could stifle this new technology before it has a chance to grow. In addition, the paper gives policymakers several recommendations on how to treat Bitcoin going forward in a way that helps the free market and provides clarity for law enforcement." Continue reading →

Continue ReadingBitcoin: A Primer for Policymakers