FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Wall Street Is Calling For The Resignation Of An Investment Billionaire (Financial Advisor Magazine)
Last Monday, Nicholas Schorsch resigned as chairman from ARCP, but analysts are now calling for his resignation from RCS Capital after he was hit with a lawsuit on Thursday, claiming that he told an accounting officer to lie on the financial statements, reports Bruce Kelly.
“We see the resignation of Mr. Schorsch as imperative,” William Katz, a Citigroup Global Markets analysts wrote in a research note on Thursday.
The news of the lawsuit “and the subsequent impact on the share price put added pressure to see [Schorsch] exit from the board as a first step,” wrote Kenneth Hill, a Barclays analyst.
The US Census’ recent construction report “reflects neither a boom nor a bust, and it only reinforces how disappointingly slow this recovery has been so far,” writes Roland Czerniawski.
Six years have passed since the housing crisis, and yet permits and starts have not even recovered half of the previous peak yet.
The three biggest issues holding the housing market from “taking off” are affordability, the “skyrocketing” student loans, and that “lending standards still remain relatively stringent despite modest improvements over recent quarters,” according to Czerniawski.
Wells Fargo Was Fined $US1.5 Million Over Checking IDs On New Accounts (The Wall Street Journal)
Wells Fargo was ordered to pay $US1.5 million by Finra “for failing to properly verify identification for nearly 220,000 new customers accounts,” report Emily Glazer and Christina Rexrode.
“Firms must be vigorous in the testing of their electronic systems to ensure they are operating correctly, include those designed to ensure compliance with critical aspects of the [anti-money-laundering] rules,” said Brad Bennett, Finra’s enforcement chief.
The Bond Market’s Going To See Volatility In 2015 (Charles Schwab)
“We think the end of the Fed’s bond buying programs and the prospects for rate hikes in the US will bring more volatility as the US economy’s course diverges from those of other developed countries,” writes Kathy A. Jones.
“We expect long-term interest rates to remain low and that the dominant trend in 2015 will be a flatter yield curve,” writes Jones.
Additionally, the stronger US dollar, the falling commodity prices, and the low global bond yields are all likely to keep US bold yields low in the upcoming year.
PETER SCHIFF: The Fed Could Go Back To The Well Of Quantitative Easing (Advisor Perspectives)
“QE4 was always more probable than anyone in government or on Wall Street cares to admit,” writes Peter Shiff.
In fact, Shiff believes that the next recession doesn’t requires a “huge shock” like the 1999 and 2007 bubbles. The current energy, stock, bond or real estate bubbles that exist in the market have been “inflated by the easiest monetary policy in history and are enough to upset the balance of things.
“All [the Fed] can do is go back to the well of quantitative easing, which is exactly what I think they will do,” writes Shiff. “More QE may minimize the damage in the short-term, but I believe it will keep us trapped in our current cocoon of endless stimulus, where we will slowly suffocate to death.”
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.