Here’s what’s been happening on Wall Street overnight

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One dirty word keeps popping up as Wall Street weighs the next market crash

What use is a killer trade idea if actually executing it is like pulling teeth?

This is a question investors will likely have to start asking themselves, if they haven’t already.

At the root of the issue is a dirty word that’s been showing up in Wall Street commentary with frighteningly increased regularity: liquidity

For context, when these experts discuss the subject, they’re referring to the lack of liquidity – and the myriad problems created when investors are unable to trade without distorting markets. When liquidity is constrained, volatility increases. And when price swings get crazier, that’s when huge losses happen.

And no matter where you look in the market, liquidity is evaporating. This is especially true in the US, where Federal Reserve tightening measures are quite literally siphoning off the supply of fresh capital. As other global central banks look to end accommodation, the situation will compound.

Inside the struggle at the top of Citigroup’s equities unit

Armando Diaz didn’t see it coming.

One Friday in March this year, Diaz, who’d joined Citigroup two years earlier as its global head of cash trading and helped the bank claw back equities market share from competitors, was suddenly summoned to his boss’s office hours before US stock markets would open.

In an office looking out on the third-level trading floor, where baseball bats stand in a corner and a bottle of whiskey sits on a shelf, Citi’s global equities co-head Dan Keegan delivered the news: Diaz was out of a job.

For months, Diaz and Keegan had gone back and forth over Citigroup’s central risk book (CRB), a desk where technology aggregates risk across dozens of traders so it can be actively managed. The CRB was led by an executive called Peter Lambrakis, but the profit and losses of the book had been Diaz’s responsibility, a tension-inducing mismatch. And Diaz and Keegan couldn’t agree on how the CRB should be positioned.

More here.

Samumed, a $US12 billion startup, just raised even more funding as it plots an IPO

Samumed, a private biotech that’s racked up the heady valuation of $US12 billion, just raised an additional $US438 million.

The company is developing a pipeline of what could be revolutionary treatments to regenerate hair, skin, bones, and joints. The funding will be used to move those treatments further along in development and potentially to approval.

“We are now in a fortunate position to both move our later stage programs to commercialization, as well as expand on our earlier stage science and clinical portfolio,” Samumed CEO Osman Kibar said in a statement on Monday .

The company had previously raised funding from backers including high-net worth individuals and sovereign funds rather than venture capital. Samumed’s chief business officer Erich Horsley said in May that the company could go public in the next three to four years.

Goldman Sachs is set to promote a top exec to co-head the securities division

It pays to be close to the man ascending the throne.

Goldman Sachs is expected to name Jim Esposito to help run the securities division, elevating an executive considered to be within incoming CEO David Solomon’s inner circle, according to a person with knowledge of the appointment. Esposito will join Ashok Varadhan as co-head of the department that helps clients trade stocks, bonds, currencies and commodities. Esposito’s announcement will likely come soon and may be made public as early as Monday morning.

PepsiCo’s first female CEO is stepping down after 12 years

PepsiCo CEO Indra Nooyi is stepping down after 12 years, the company announced on Monday.

She will be replaced by the company’s president, Ramon Laguarta, according to a statement . He will be the beverage maker’s sixth CEO.

Nooyi was the first female CEO in the company’s history. Her run will end October 3 after 24 years with Pepsi, and she’ll remain chair of the board through early 2019, the company said.

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