Editor's note: Morning Scan will not publish on Monday, Oct. 13 in observance of the Columbus Day holiday. We'll be back on Tuesday, Oct. 14.
Receiving Wide Coverage....
Bernanke, Annoyed: Unsuccessful home-refinance applicant Ben Bernanke was the final star witness on Thursday in the shareholder lawsuit challenging the federal government's bailout of American International Group. Most of his answers were terse, according to several media reports, and he was often "visibly annoyed," the Journal reported. At one point during his questioning, Bernanke said AIG's collapse would have been "basically the end" of the financial system, the Times reported. Bernanke also said AIG had no better offer on the table than the federal government's bailout. And in a strange little twist to the whole saga, it came out in Thursday's proceedings, submitted as part of evidence, that Bernanke adopted the nom de plume Edward Quince when talking with Fed colleagues about the financial crisis. The name had no particular meaning. The Fed confirmed Bernanke didn't use the pseudonym to avoid having to comply with the Freedom of Information Act.
Wall Street Journal
A group of attorneys general are considering whether JPMorgan and other financial institutions that were targeted in a recent cyberattack violated state disclosure laws on data breaches. The group may also look at other aspects of the breach, including an examination of who hacked JPMorgan (aren't several agencies already doing that?) and look at what information was taken.
Banks with trading operations, i.e. Citigroup, JPMorgan Chase, Wells Fargo, etc., are expected to actually get a boost from that business line resulting in a profit for the third-quarter; earnings will be reported next week. Bank of America won't be reporting a profit, of course, because of its $17 billion settlement with the Justice Department over mortgage sales. Choppiness reigned supreme during the quarter, which typically lifts trading volume. Trading "hasn't been the albatross it had been in past quarters," a JMP Securities analyst said.
JPMorgan Chase and other large banks with trading operations are supporting new restrictions on short-term lending markets.
A survey conducted by a Swiss banking-software company of 198 senior bankers worldwide revealed the not-surprising finding that bankers are fearful of online competitors like Amazon and Google.