Finance Insider is Business Insider’s midday summary of the top stories of the past 24 hours.
There is a phrase on Wall Street for the practice of firing senior traders and salespeople and replacing them with younger talent.
It is called “juniorization,” and it has been pretty prevalent over the past few years as banks have sought to cut costs. It is now starting to freak some people out on Wall Street.
In other news, Fitch Ratings is sounding the alarm on a threat building inside the $34 trillion Chinese banking system, Valeant has named 3 new members to its board, and a big trading business is haunting Wall Street.
The Harbour Investment Conference took place on Tuesday. Here are the top headlines:
- Hedge fund manager Whitney Tilson, the founder of Kase Capital, is shorting specialty flooring retailer Lumber Liquidators again.
- Bruce Berkowitz, the founder of Fairholme Capital, slammed the US government over its handling of Fannie Mae and Freddie Mac.
- Activist short-seller Ben Axler, the founder of long-short equity hedge fund Spruce Point Capital Management, said he is short Planet Fitness.
Jeff Gundlach also held his latest webcast on markets and the economy, called “Connect the Dots,” on Tuesday. Here is everything you need to know about that.
Lastly, the word “disruption” is routinely used when Wall Street analysts discuss Tesla. And there’s a problem with that — a big problem: Tesla isn’t disrupting anything.
Here are the top Wall Street headlines at midday:
There’s a new ETF that will let you bet on the future of video games – It’s easy to get invested in beating a video game.
BERNANKE: Here’s what China should do to solve its ‘trilemma’ – Is the no-devaluation strategy a good one for China? If it is, what does China need to do to make its exchange-rate commitments credible?
ABERDEEN: We’re worried that deflation could trigger a wave of unemployment across Europe – The Eurozone officially fell into deflation again in February in spite of the best efforts of the European Central Bank (ECB).
Barclays is telling its bankers to exercise like crazy between meetings – Barclays has bought fully into the high-intensity fitness fad by encouraging its bankers to use new exercise technology between meetings — in their suits.
An ex-JPMorgan broker just got 5 years in prison for stealing from customers – A former JPMorgan Chase investment adviser was sentenced to five years in prison on Tuesday.
American Airlines pilots: We are tired of apologizing for our embarrassing company – American Airlines had a banner year in 2015, reporting a stellar $6.3 billion in profit.
Michael Phelps broke down in tears when he first saw his new Under Armour commercial – Under Armour unveiled the latest instalment of its Rule Yourself campaign, dropping a gripping 90-second commercial of Olympic swimmer Michael Phelps.
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