Wall Street's Week In Pictures

frontpoint insider trading rabbi

The Republicans retook the house, the SEC is investigating JP Morgan and it feels like everyone is involved in the Albuferon insider trading case…

There was no good news this week, friends.

The SEC Announces It's Investigating JPMorgan

The SEC announced it's investigating CDO sales by JPMorgan, that were packaged by hedge fund Magnetar with the riskiest assets it could find. JPMorgan aptly named the CDO, 'Squared.'

The SEC will look at whether JPMorgan 'adequately disclosed to investors' that it allegedly allowed Magnetar to both pick the assets and then bet against the deal.

Republicans Retake The House In The Mid-Term Elections

Everyone watched the mid-term elections eagerly to see if the Republicans would take the senate and the house. In the end, they regained the house in a blacklash against what many Americans see as too much government spending. And they've already started a pushback against Dodd-Frank.

Bernanke Announces QE2

It's QE2 Day!

QE2 was rolled out on Wednesday, and it was a big day for traders. Now many suspect any good QE2 would have done has already been priced in, and therefore it might be worthless.

FrontPoint Is Linked To Insider Trading Case

The hedge fund world was shaken by a mysterious case of insider trading involving a doctor, a blackmailing rabbi, and two prominent hedge fund managers. Though FrontPoint is yet to be charged with anything, the firm's star healthcare funds portfolio manager, Chip Skowron, has been suspended.

Layoff Fears Continue

Surprise! Everyone's still worried about layoffs.

But happily, there haven't been any reports of mass layoffs this week. We've been hearing whispers of UBS layoffs, but all we were able to confirm this week was that one banker at the Stamford, CT office was let go.

Goldman Sachs Says Fed Will Spend $2 Trillion In QE2

Goldman Sachs' Jan Hatzius predicts that QE2 is heading from $600 billion to $2 trillion and will continue through 2012.

'In practice, QE2 is likely to continue well beyond June 2011--at least well into 2012--if our forecasts for unemployment and inflation are close to the mark. We believe that purchases could ultimately cumulate to around $2 trillion...Under our longer-term projections it is easy to come up with models that show no tightening until 2015 or later.'

Oof.

Bad News About Wall Street Bonuses Hit Again

It was predicted this week that Wall Street bonuses will drop an average of 12% this year. The hit will be the biggest in fixed-income trading. Investment bankers will do about the same as last year. The biggest drops come for Goldman Sachs, whose trading bonus pool is down 26% from last year.

Citi Wins Court Battle Against Guy Hands

Guy Hands lost his case against Citigroup this week after a bitter court battle that saw a jury member kicked out because she lied about talking about the case in an elevator with fellow jury members. Guy Hands had accused Citi of manipulating his private equity firm, Terra Firma, into an overpriced bid for EMI, and was awarded nothing.

Congratulations to David Tepper, The New King Of Wall Street!

David Tepper's September 24 call that stocks would rise thanks to either the economy or the Fed couldn't have been more right. The S&P 500 is up about 7% since then.

If David Tepper is the new king of Wall Street...

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.