Future of Finance on Flipboard
By Quartz | Exploring the "new normal" in global finance
I realized the pop culture phenomenon that is the activist investor had taken a new turn when a friend showed me an iPhone app at a party. iBillionaire lets you track the investments of “billionaire investors” whose names you know (Carl Icahn, David Loeb, David Tepper and David Einhorn among them) …Investing
Bankers don’t usually get much sympathy after the financial crisis and subsequent series of scandals. But bankers are people too. And the human toll on financiers called in to clean up the mess is particularly acute.
The latest example of banker burnout is Hector Sants, head of compliance at …Financial Crisis
The Internet of Things—a world where most working objects are online in some fashion—promises to change everyday life and boost the economy. But who knew it could make it cheaper to buy a fridge?
That’s the conclusion of financial innovation consultants at Capco who developed a theory about how the …Domestic Technology
PriceBoozHouse. PricewaterhouseBooz. BoozPrice. Pooz?
Those are just a few of the scintillating names that could come from combining two of the world’s biggest professional services firms, accounting behemoth PricewaterhouseCoopers, and management consulting house Booz & Company. The firms announced …Accounting
Editors’ note: This article was originally published on October 25, 2013. It explains how IEX—the firm profiled in Flash Boys, Michael Lewis’s book about high-frequency trading published today—works to neutralize the advantages high-frequency traders enjoy in the markets.
A plague of predators are …Investing
The rise of internet banking is making itself felt in an unexpected area: American civil-rights law. Before the financial crisis, …
Dwolla’s mission to build better infrastructure for sending people money enters a new stage today with the first truly real-time internet payment system.
Most internet payment companies, like PayPal, Venmo, Square, and PopMoney, make money transmission more accessible to people, but remain dependent …Money
There are few more emotive issues in the business world than bankers’ bonuses, defended vigorously by the financial industry and vilified outside of it.
The European Union will impose limits on bonuses for the highest earners from January, capping payouts to 100% of a banker’s base salary in most …Rabobank
The numbers: Better than expected. Morgan Stanley beat Wall Street’s expectations for both earnings and revenue in the third quarter. The bank saw revenue of $8.1 billion (excluding an accounting adjustment that’s typically ignored) and earnings per share of $0.50, up from $560 million in revenue …England
The volume of shares traded outside of public exchanges is growing fast in Europe. Trades on so-called “dark pools” jumped 45% over the past six months, according to a new report (pdf) from Fidessa, a technology firm. These off-exchange venues processed €207 billion ($283 billion) in the six months …Investing
The numbers: Goldman Sachs reported earnings of $2.88 per share, soundly beating Wall Street’s expectations of $2.44 per share. Although this itself renders Goldman’s earnings a “win,” it’s hard to ignore that this is also the investment bank’s worst quarter since Q2 2012. Revenue fell to $6.7 …Goldman Sachs
JP Morgan devoted $9.3 billion to legal expenses last quarter, driving its net loss of $380 million. Its legal troubles took up 39% of its total revenue in the same period, by far the company’s largest single expense.
That’s right: The largest bank in the United States spends more money fighting and …JPMorgan Chase
Even for a straight-talking Dutchman, the recent remarks from outgoing ING chief executive Jan Hommen were remarkably frank. Hommen, who stepped down last week from the helm of the bailed-out bank, admitted to the Financial Times that the bank grew “too big to manage.”
The substance of his complaint …Banking
Citigroup this week agreed to pay $30 million to settle allegations that analyst Kevin Chang improperly revealed inside information about Apple’s supply chain to clients at at four different firms before his report was publicly available. It’s the latest installment of a war on “insider trading …Insider Trading
Believe it or not, Goldman Sachs is on Github. For all you non-programmers out there, Github is a platform that allows developers to write software online and, frequently, to share it with others. For banks—which have typically kept technology behind closed doors—that’s an alien concept. And for …Goldman Sachs
Private equity firms are delusional. A record number—nearly 2,000 of them—are currently out on the road seeking more than $700 billion in fresh funds, according to new statistics from data provider Preqin (pdf).
Considering that PE firms haven’t raised anywhere near their targets since the financial …Private Equity
Private equity just dropped $40 million on prime London real estate to shave milliseconds off trade times
How do you speed up high-frequency trading (HFT) when you already have fibre-optic cables running from your firm’s servers to the data centers where all the magic happens? Private equity firms are betting that HFT firms will pay big bucks to move their infrastructure to a secure, reliable location …Private Equity
When journalists get early access to US Federal Reserve statements, the system has flaws that make it easy to see how the information could get out early. That’s what may have happened last week with the Fed’s surprise decision not to taper its bond-buying program. The news started to move markets …Federal Reserve
If there’s one kind of banking that’s been repeatedly touted since the financial crisis, it has to be wealth management. Banking, we’re told, needs to become more boring. And in wealth management, the incentives of money managers are more directly aligned with those of their customers.
But the …Wealth
Mark Zuckerberg beat the twins Cameron and Tyler Winklevoss to the punch in launching Facebook. Now someone else seems to be stealing a march on their plan to launch an investment scheme for bitcoin.
SecondMarket, an American online marketplace, announced today that it’s launching a new bitcoin …Bitcoin
Why a new rule allowing hedge funds to advertise could be the biggest change to US capital markets since the 1930s
Media outlets—ourselves included—have made fun of new rules that will allow private companies and hedge funds in the US to advertise that they’re raising money. Those rules, lifting a ban on “general solicitation,” are part of the JOBS Act passed last year, and go into effect today. But as funny as …Investing
On Sept. 18, gold futures surged nearly $20 in the 30 seconds after the US Federal Reserve released the news that it would not “taper” the monetary stimulus it’s feeding the economy. Someone made a lot of money off of that—potentially by dubious means.
According to research from Nanex LLC, a …Federal Reserve
Jamie Dimon, the chief executive of JP Morgan Chase, sent the following memo to all of his employees today. In it, he vows to simplify the firm’s structure and avoid more screw-ups like those that have recently plagued the company. “Never before have we focused so much time, effort, brainpower, …Jamie Dimon
Five years after it filed for bankruptcy on September 15, 2008, Lehman Brothers still employs about 300 people, according to the company. Most of them toil on the 39th and 40th floors of the Time & Life Building in Manhattan, and their job is to wind down the failed bank’s remaining assets, …Bankruptcy
What if someone told you the stock market crashed and spiked 18,000 times since 2006, and you had no idea?
That’s the contention of a group of scientists who study complex systems after analyzing market data, collected by Nanex, since the advent of high-speed trading. While the fallout of …Trading
Financial crisis retrospectives have flourished over the past week, tied to the five-year anniversary of Lehman Brothers’ collapse. In this regard, the latest quarterly review of the global banking system by the Bank for International Settlements (BIS), published yesterday, is well-timed.
Twitter’s confidential regulatory filing yesterday for a public offering is just the latest effort by Silicon Valley to shift the rules for dealing with investors, the stock markets, and the whole IPO process. And even more radical attempts by internet firms and their investors to grab power from …Internet
On Sept. 9, Reuters reported that Kevin Kaiser of Hedgeye Risk Management had sent shares of Kinder Morgan, North America’s third largest energy company, reeling 6%. Kaiser had emailed clients advising them to short the stock (i.e., bet it would fall). The following day, Kaiser published a full …Wall Street