Finance Insider is Business Insider’s summary of the top stories of the past 24 hours.
The rise of passive investing has fundamentally altered the business of Wall Street.
And now, it may also be changing the quality of research produced by investment banks for active-investment firms like hedge and mutual funds.
Elsewhere on Wall Street, the business of trading corporate bonds has changed, and the Fed admitted that a startup can predict its upcoming interest rate forecasts.
Wells Fargo has fired thousands of employees and incurred fines totaling $185 million because of a widespread practice of employees opening new accounts for existing customers without their authorization. Business Insider’s Josh Barro argues that the scandal is a cautionary tale about incentive pay.
And finally, Cairn Capital, a London-based fund management firm with $8.6 billion in assets under advice, has made a big hire.
In deal news, a startup worth over $1 billion had $83 million in revenue last year — and it just filed to go public. And after spending $4 billion on acquisitions this year, Salesforce bought yet another company.
Finally, here’s a great interview with legendary physicist Freeman Dyson, who talks about maths, nuclear rockets, and astounding things about the universe.
Here are the top Wall Street headlines at midday:
The little guys are winning on Wall Street – It doesn’t take a position at a big investment bank to land a role on a big deal.
Here’s who holds the world’s $60 trillion in sovereign debt – The world’s governments now have around $60 trillion in debt which is then sold to investors as bonds. So who owns this debt?
The ‘Barbarians at the Gate’ are getting something right – There is a long running debate in private equity investing.
Morgan Stanley isn’t so sure about its forecast for the oil recovery anymore – Morgan Stanley is losing its conviction about the oil market’s future.
San Francisco’s housing market has been on a ‘wild ride’ – The housing market in San Francisco has a notorious reputation.
Porsche just unveiled a new model of its Panamera hybrid — and it looks amazing – Porsche unveiled a new version of its hybrid sedan Friday and it comes with some impressive new features.
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