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 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.
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' 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.'
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.
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.