Receiving Wide Coverage ...
Nasdaq's Knock Out: Regulators and exchange officials continued digging up more information as to what caused Nasdaq's three-hour shutdown on Thursday. The Journal reports it was a two-minute window where rival electronic market NYSE Arca could not connect with the Nasdaq after numerous attempts, according to unnamed sources. But Robert Greifeld, the chief executive of the Nasdaq-OMX Group, says it was because the U.S. equity market is a "fragmented landscape," the FT reports. The papers took divergent stances, as the Journal says the glitch "exposed a weakness in the plumbing of the market" and the Times says Nasdaq looks "more like a vulnerable also-ran."
Tech Turnover: Speaking of tech problems, the FT reports Goldman Sachs put four senior technology specialists on leave for an "embarrassing trading glitch" last Tuesday. The Journal says Goldman will get hit with "tens of millions of dollars in losses" because of the technical problem in its software program.
Markets Mourn: The markets took another loss this weekend when Muriel Siebert, the first female member of the New York Stock Exchange, died Saturday due to complications from cancer. The Journal describes 80-year-old Siebert as "an outspoken advocate for financial literacy and for women's advancement on Wall Street . . . bucking a system intent on keeping her at the margins." The Times says Siebert "cultivated the same brash attitude that characterized Wall Street's most successful men."
Fed Fears: The Journal says central bankers globally are "bracing" for "more financial turbulence" when the Federal Reserve begins to wind down years of quantitative easing. Concerns from central bankers follow news late Friday from the Fed's meeting Friday in Jackson Hole, Wyo., where the Journal separately reports that economists and central bankers are looking for the Fed to offer "clearer guidance" to calm the markets. In the meantime, Robert Samuelson of the Post says a search for the new Fed chairman has become a "soap opera" starring economist Lawrence Summers and Janet Yellen, the Fed's vice chairman.
Bitcoin Meetings: Bitcoin supporters are meeting with U.S. administration officials and policymakers in Washington this week amid regulatory investigations into the potential threats of virtual currencies, the FT reports. The Journal says at least seven government agencies are on that list to meet with Bitcoin Foundation representatives on Monday, including the Federal Reserve and the Office of the Comptroller of the Currency.
Wall Street Journal
The Journal notes in two weekend articles that credit cards continue to have costly surprises for consumers despite recent regulation to address the problem. One article says a majority of consumers recently surveyed by J.D. Power are still confused about their credit card terms three years after new rules were "ushered in" to clear the air. The Journal also warned of being sidetracked by interest rates or rewards on a credit card when transfer fees can average 3%, according to creditcards.com.
The Journal said late Friday that JPMorgan Chase is looking to scale back its business with foreign correspondent banks and will no longer accept new business, citing sources familiar with the matter. The move seems likely as Chase faces regulatory pressure in trying to redeem itself from the "London Whale" trading fiasco, the paper says.
The FT reports that Barclays plans to stop supporting international monetary transfers with Somalia likely over fears of money laundering and terrorist financing. Barclays was that last major bank to exit the Somali market.
New York Times
The Times investigates how pawn shops are taking over the role of banks by offering check cashing, loans and other financial services largely to the underbanked. "I like to call it the poor man's bank," the article quoted a pawn shop owner.
In case you missed it, the Post reported Friday that the Federal Deposit Insurance Corp. is filing lawsuits against hundreds of directors and officers of failed banks before the three-year statute of limitations runs out.