High-Frequency Trading Allegations Lead To Confrontation On CNBC

By: Wednesday April 2, 2014 8:11 am

After Sunday’s 60 minutes expose on high-frequency traders “rigging the stock market”, the Global Markets president of BATS William O’Brien, went on CNBC to challenge his accusers directly and rudely. After O’Brien accused author Michael Lewis and Brad Katsuyama of lying in order to promote a business Katsuyama said “You want to do this? Let’s [...]

Study: High Frequency Trading Robs From Smaller Investors

By: Tuesday December 4, 2012 10:45 am

A new study confirms that high frequency trading, which already has declined in terms of its yield if not its use, endangers investors and basically turns stock markets into automated casinos where the average Joe can do little but get hurt. The chief economist at the Commodity Futures Trading Commission, Andrei Kirilenko, reports in a [...]

Republicans Angry That SEC Allowing Public Comment Period for a Rule Change

By: Monday December 3, 2012 7:05 am

Normally you would attack a regulator for corruption on their way in the door, not on their way out. But Patrick McHenry (R-NC) claims that SEC Chair Mary Schapiro, in one of her final acts, burnished her legacy by delaying a rule that would allow companies trying to go public to solicit donations through public [...]

High Frequency Trading Can Be Curtailed Simply With a Transaction Tax

By: Thursday October 18, 2012 7:45 am

The stock market has become a war between algorithm-based robots, a war for speed where the winners trade 10 microseconds faster than the losers. But all sides of this war have armed themselves so well, have reduced the timing of trades so much, that high frequency trading no longer makes much money. Now it appears [...]

Citigroup’s Pandit Resigns as CEO

By: Tuesday October 16, 2012 7:13 am

Vikram Pandit, the CEO of Citigroup, who presided over some of the worst years in the history of the bank, abruptly stepped downtoday. He will be replaced by longtime Citi executive Michael Corbat. Here’s Pandit’s statement.

Study: Time to Stop Banks from Risky Trading

By: Wednesday October 10, 2012 12:59 pm

Via Mark Gongloff, the IMF has released a new study showing that, in essence, the world would be a much safer place if international banks stopped trading in the financial markets. Why can’t banks just trade like George Soros and everybody else? Why can’t they have any fun? A few reasons: First, banks have tons [...]

SEC Using High Frequency Trading Firm to Monitor High Frequency Trading

By: Monday October 8, 2012 2:28 pm

One of the areas that Sen. Ted Kaufman and his chief of staff Jeff Connaughton tried to focus on during his accidental two-year term in the Senate was high-frequency trading. The 2010 “flash crash” showed the potential dangers of this fast-growing industry. Consider that our financial system places a large emphasis on where super-computers are [...]

Spain Unveils Austerity Budget

By: Thursday September 27, 2012 10:59 am

Spain released its austerity budget today, and it focuses on cuts to social spending much more than any tax increases. Government ministries saw their budgets slashed by 8.9 percent for next year, as Prime Minister Mariano Rajoy’s battle to reduce one of the euro zone’s biggest deficits was made harder by weak tax revenues in [...]

Citi Settles for $590 Million With Shareholders Over Misrepresentations During Financial Crisis

By: Thursday August 30, 2012 6:59 am

Citigroup has settled a class-action lawsuit with shareholders over how Citi managed subprime securities during the financial crisis, a second-order fraud unconnected to the actual fraud of securitization and knowingly selling the bad securities in the first place. Citigroup said on Wednesday that it had agreed to pay $590 million to settle a class action [...]

Ryan Made Series of Bank Trades in 2008 During Financial Crisis

By: Monday August 13, 2012 11:33 am

Like everyone else but two members of the House, Paul Ryan voted for the STOCK Act, a watered-down version of a bill that would ban insider trading among members of Congress. Before he did that, however, Ryan spent 2008 wheeling and dealing his bank stock portfolio to match his knowledge gained as a member of [...]

Machines Have Taken Over the Stock Market

By: Thursday August 2, 2012 8:55 am

In another example of why normal Americans just shouldn’t play the casino that has become the stock market, a runaway trade bot threw the NYSE into turmoil yesterday: An automated stock trading program suddenly flooded the market with millions of trades Wednesday morning, spreading turmoil across Wall Street and drawing renewed attention to the fragility [...]

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