Breaking News This Morning ...
Earnings:
Receiving Wide Coverage ...
Breaking It Off: It has been a nice, decade-long relationship between JPMorgan Chase and Highbridge Capital Management, but the private-equity business is basically saying it's time to move on. And even JPMorgan officials agree it is time to see other people, so to speak. Reports in two major dailies said Jamie Dimon & Co. is close to finalizing a deal that would spin off the majority of Highbridge's $22 billion PE portfolio to management. It's part of the wave of shedding noncore holdings because of postcrisis regulations for big banks to derisk.
Highbridge Chief Executive Scott Kapnick has wanted the business to spin off from JPM for more than a year so he could "run it independently of a large bank," the Journal quoted sources familiar with the matter. Dimon "became receptive ... to the belief the business would be able to
Fed in Focus: Items in several papers stepped back from the daily "Will they? Won't they? When will they?" speculation about the Fed to look at the bigger picture. The Washington Post Wonkblog's deconstruction of the "
The short answer to the first question is a little inflation is a good thing for a recovery, because businesses don't have to cut costs as much (i.e., lay off employees) to maintain their efficiency and the Fed doesn't have to cut rates as much to give the economy a boost when needed. The answer to the second is, yes, the timing does matter "because a Fed that is willing to raise rates when it's not clear it should is a Fed that looks like it will raise rates more in total," prompting businesses to tighten their belts and pushing up the dollar.
A letter in the Journal accused the Fed of "
And the Financial Times' "Exchange Column" tries to poke a hole in the notion the Fed should raise rates to help Grandma and Grandpa Saver get some
SEC Revamp? President Obama's nominations of Lisa M. Fairfax, a professor at the George Washington University Law School, and Hester Peirce, a senior research fellow at George Mason University’s Mercatus Center, for seats on the Securities and Exchange Commission stirred up a lot of dust.
Peirce is a "
Unshockingly, a Journal opinion piece about the situation grouses about the
Sanctions Central: Several of the papers had detailed pieces on Crédit Agricole's agreement to pay a $787 million penalty for allegedly processing transactions that violated U.S. sanctions related to Iran, Sudan, Cuba and Myanmar. Note to executives: if you run across a memo on a “Sudanese U-turn exception,” Scan recommends you flag it for the compliance department.
Wall Street Journal
"Lawmakers Raise Alarms Over Tapping Banks to Pay for Highways" — A bipartisan group of 150 House lawmakers opposes a spending provision that would
"Banks Facing Tough Times Pull Out Visa...Shares" — This is a good
Fifth Third’s Profit Jumps on Fees and Commercial Growth — The story sheds more light on Fifth Third's eye-catching writedown of a commercial loan backed by student loans. The credit in question was a
New York Times
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"RushCard Breakdown Affects Thousands of Prepaid Debit Card Users" — This piece has some poignant personal stories about RushCard customers whose daily
Financial Times
"Hacks clear path for US cyber bill" — All the news about data breaches could give the business world its best chance at convincing Congress to push through
Washington Post
Larry Summers: Canadian election proves that an